4 Year Old US B2B Marketing SaaS Company - Priced at 3.5x ARR

Location: USA (but operated out of South Africa)

Business Start Date: 2019
Business Price: 1.5M USD
Sales (TTM): 892,661 USD
Net Profit (SDE): 225,000 USD
Business Multiple: around 3.36x ARR
Clients: 31

The Opportunity
This listing is a 4-year-old highly scalable digital marketing business serving the B2B cold email market. The business helps companies with email outreach as their main service - in this, they have a high-touch full-service software process to service this niche, which is in demand for any sales-forward organization. The potential buyer has the opportunity to acquire a respected brand with a solid financial foundation at a competitive multiple of less than 3.5X the ARR.

General Highlights
This 4-year-old business is equipped with an innovative product, a reliable customer base, and a finely-tuned operational system.
The business already is steadily growing year over year to almost 900k ARR currently and has plenty of new growth opportunities -
The business has a credible industry presence and it is well-regarded and trusted, giving the buyer an immediate competitive advantage.
The business boasts a steadily expanding customer base of over 31 companies with a decreasing churn rate, ripe for long-term customer retention.

Niche
This business operates in the digital marketing and communication space where it serves the B2B cold email market segment for companies seeking help managing their email campaigns as well as other agencies looking for a white-label solution

Customer Base
The company has 31 clients from a broad range of industries with the majority being VCs, ICT, Software devs, Marketing and Advertising, and Corporate gifting.


Traffic
For the period of January 2020 to October 2023, the company has 23K users with a 64.93% bounce rate and 59,463 pageviews.
In terms of demographics, 10,008 users are from the United States, which corresponds to 43.37% of all its users. Others are from South Africa (3,022 users), and the United Kingdom with 2,168 users.
The business' user acquisition is as follows:
Direct - 15,574
Organic Search - 5,376
Paid Search- 995
Social - 846
Referral - 284
Other - 21

Revenue Sources
The business makes money through the sale of various cold email packages that differ primarily on the basis of the number of email sequences that are offered.
All of its packages are performance-based and tailored to its 50+ clients' unique service needs and requirements. Pricing plans are Emerge, Embark, Envision, and Explore - with Embark being the most popular plan.
Custom plans are also available. All plans have discount options applicable if the client is willing to make upfront payments/subscriptions.

Financials
The company’s revenues have been steadily increasing since its inception in 2020. It has achieved a CAGR of 184% to date. The business has been profitable but has not yet achieved its full potential as over the recent couple of years, the emphasis has been on developing a viable product, augmenting operational systems, and hiring key employees to bring technical stability and drive growth. Gross profit margins have averaged 76% while operating profit margin was 12.4%

Sales (USD)
2021 - 119,108
2022 - 506,579
2023 - 812,575
Profit (USD)
2021 - 18,692
2022 - 96,619
2023 - 19,800

For full details, sign up to FIH.com and go to this link: https://fih.com/listing/1063824