B2B SaaS Business – 9 Years Of History, High Retention & New Software Ready to Launch

Internet / SaaS / B2B
B2B SaaS Business – 9 Years Of History, High Retention & New Software Ready to Launch
Revenue
$1,126,346
Profit
$656,951
Price
$2,000,000 (open to offers)

Description

B2B SaaS Business – 9 Years Of History & New Software Ready to Launch

For sale is an Email Service Provider/SMTP relay service with 9 years of history. This is a B2B business that serves volume email senders. Their clients generally send between 150,000 (on the low end) to 10,000,000+ email messages a month. They provide deliverability services, email consulting and training, and have launched an in-house software system. The new software system is a key asset as it is more than just a email software and is more of a marketing automation platform (see additional comprehensive info on following pages).

This is a business with strong average retention at 36+ months (They have a number of clients who have been with them for over 4+ years). Nearly all clients who have left were due to the previous third party mail client software so that is why the owners developed their own in-house email software for email marketing and delivery.

The new software has more automation and more features that clients asked for. Software is currently at the stage where existing clients are migrating onto it (as clients are ready). New customers will be going onto the new system as of March 1st. A full marketing launch of the new mail client represents a significant growth opportunity. The owners have not done the marketing launch yet as they would prefer to do it with the new owner on board and aligned in terms of what market segments to go after, pricing, marketing strategies, etc..

Most of their lead generation recently has been from word of mouth, retargeting, and content marketing. They will be reintroducing Facebook advertising, affiliate marketing, and PPC ads when the mail client goes into beta. Sales generally involve a call with a salesperson and conversion rate on live sales calls is 60%.

There is a team that will stay in place to run the business for a new owner if desired.

This is a highly profitable business and is a perfect fit for a new owner that has the time and team to really focus on marketing and sales.

Key Assets & Highlights:

o Monthly recurring revenue SaaS business
o With quality senders, the customer retention is strong (2+ years)
o Growing market with lots of room for growth
o Good as a primary service or an ancillary product/service for existing businesses that want to add email services to their product offerings
o Systems – have SOPs in place
o Content available to leverage (2 books, special reports and webinars)
o Several different verticals within the email marketing space which makes it appealing to different buyers (i.e. info marketer with a large following who wants to add additional stream of income, ESPs who want to absorb clients and software, etc.)

Market Research:

Email marketing market size which was at USD 1.5 billion in the year 2010, is growing at a healthy CAGR of 20%, and is expected to reach market size of USD 6.5 billion by year 2018. The growth in the email marketing market is attributed to rising number of email marketing and hosting service providers and growing number of internet users.

Growth Potential:

o There are multiple areas of growth for this business. The email marketing industry is a growing market and more and more companies are wanting a piece of the industry. The key is automation and segmentation. People are looking for tools that allow much more detailed segmentation and list management than has historically been available (this is why they essentially diverted their focus to build a robust internal software system).
o To grow the business, the owners would recommend aggressively targeting affiliates with large audiences and influence, mastermind groups, and other network groups.
o Trade shows are another way to grow the business.
o Also do additional paid marketing specifically with sites like LinkedIn, reaching decision makers.
o Additionally, building out an internal sales team would potentially grow the business dramatically.
(SEE PROSPECTUS FOR FULL DETAILS)

Support and Training Period:

The existing team will remain in place for a new owner as desired. Seller is open to discussion and will provide transition, training and support as needed.

The owners are flexible depending on needs, sale price, and compensation. They are open to staying on for just a few weeks for training and support as part of a sale package or potentially staying on for 1-2 years with a salary that makes sense. This would need to afford flexibility and allow the owners to work remotely (for the long term option).

Reason For Selling:

Owners have a young child and ultimately want to have more time to focus on their family. When they started the business they never intended to grow it into a larger corporate style business. They feel it is now at a point where it needs a new owner to take it to the next level. A new owner could take this and have massive expansion now that they have their own internal software system (mail client/infrastructure).