Back to Listings Digital Marketing/Web Development Firm – 83% Recurring Revenue, 24% Net Margins

Asking Price : $1,650,000

Annual Gross Revenue : $2,240,390

Annual Net Profit : $532,858

Profit Multiple : x3.10

Inventory Value: -

R-Index : 122

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From the Broker

This unique, twelve year old business specializes in providing digital marketing solutions, custom website development, hosting services, and more.  Founded in 2005, this full-service, scalable digital marketing company provides valuable marketing services for businesses of all sizes in multiple verticals. Unlike many marketing and web development firms that rely on one-time development projects, this boutique agency has established a highly valuable base of recurring revenues with approximately 83% of the 2017 revenues coming from residual income. As a result, approximately 83% of annual revenues come in on a largely “automatic” basis and essentially create a “subscription-like” effect, as most customers pay on a regular basis because of the ongoing nature of marketing campaigns. Over the past few years, the company has grown its top and bottom line by an average of 5% & 4%, respectively each year. With a solid and scalable infrastructure and turnkey staff in place, this business is poised for substantial growth ahead.

While SEO, PPC, and Web Design represent the majority of its current business, additional revenue comes from consulting, link building, and email marketing.  The company also handles smaller projects including logo designs, and hosting, etc.  Since inception, this business has continued to grow its comprehensive product offering, which has created a very loyal customer base, having 83% of revenue coming in on a residual basis. Referrals have also been an increasingly large source of customer acquisitions, which clearly illustrates the high level of customer satisfaction. Additionally, the customer retention rate and lifetime value is extremely high, which opens the door to offer additional complementary services. Operating in an evolving and extremely innovative industry, there are constantly new added services and solutions to be offered to customers.  With approximately 130 active clients and nearly $130,000 in monthly recurring revenue, this business represents a high quality acquisition opportunity with a twelve year proven track of reliable cash flow and highly valuable base of recurring client relationships and revenues.

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Sale Pending: No

First Seen: Thu, Feb 1st 2018

Last Updated: Tue, Apr 3rd 2018


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