Monthly SaaS Deal Review with Andrew Gazdecki ft. Rainier Nanquil (M&A Broker at Acquire.com)

Foreign.

So we're gonna go and kick this off. I'm really excited for this webinar specifically because what we're going to be doing is going over some really good SaaS acquisition opportunities. So I'm going to go ahead and share my screen and we're gonna get going. Can everybody see this? Okay. Can get a thumbs up from everybody? I seen like one thumbs up. All right, There we go. All right. Acquire.com, world's number one start back with this marketplace. So quick agenda, we're going to do some introductions. I have a special guest with me here today, if you haven't noticed. Also, just go over while you're here, what we want you to get out of this webinar. We really want to pack as much value as possible. And then we're going to reveal review some deals. These are live acquisition opportunities, specifically SaaS businesses on our marketplace today that we think you should definitely check out. And these aren't just only ones. We have thousands. So we're just going to go over a few today and then also how to really get matched with the best, how to find the best acquisition opportunities on acquired.com. so before we get into that, though, just some quick introductions. My name is Andrew Gazdecki. For those of you that don't know me, I've been an entrepreneur pretty much my whole life. I built and sold two different businesses. I bootstrapped this ask how many called business apps to about 10 million in recurring revenue, which is what really made me start acquire.com was realizing that acquisitions are difficult and to help founders exit their business is easier. And enough about me. I'd love to hand it over to Rainier. Rainier, you want to give yourself a introduction?

Yep. What's up, everyone? My name is Rainier. I'm one of the in house M and A advisors here@acquire.com I have over a decade of experience in M and A capital markets and investment sales. Worked on over a billion dollars worth of deal volume. Worked at previous brokered shops before my time at Acquire. Happy to be here in today's webinar. What's up, everyone?

And look at Ranier's just perfect haircut. Renee's amazing fade. All right, we like to have fun here. So if you aren't familiar with acquire.com, our our goal is to build the best online marketplace to buy and sell startups. So we're going to be talking a lot about the buy side today. Typically talk about the sell side, but we're going to be going over, you know, how we review listings, but a little bit about our impact. You've been in business about four years. We've helped over a thousand startups exit. We've done over half a billion in closed transactions, over 400,000 registered buyers on the platform and we've completed acquisitions in 100 plus countries and in every continent except Antarctica. So if any of you have a referral to a business in Antarctica, we'd love to check that off. But we're a global marketplace so we work with businesses all over the globe and so really just going over, you know, why are you here today? So what do we really want you to get out of this? We want to show you some of our best deals and really outline what makes them special. So we're going to be going over a monthly showcase of our biggest and best SaaS deals. We're going to be going over how we vet these listings and, and how we view them personally. And then we're going to go over these deals on the marketplace and we're going to try and do a off the cuff back and forth between me and Rainier on how to due diligence the deals when you're looking at them and then I'll also chime in with my take on potentially how to grow them or some strategies or just other thoughts. So really when it, when you think about acquire.com, one of our main goals is always to maintain really high quality deal flow because we know how hard it is to you cold email a bunch of businesses and none of them are interested in selling or they want to sell at an outrageous price or there can be a number of different factors. And so really what a product. Com does is we vet listings. So the first step is we have a strict vetting and creation process where we only let in about 45% of startups that list with us. So there's a number of reasons that we won't accept startups on our platform. But every listing that is on our marketplace is vetted by our team. We do review these businesses. We also have something called the guided listing process process and this is where we ID verify the seller, the owner of the business and even the business itself for security to make sure that if you do transact on acquired.com, you're safe and you're secure. And most importantly, trust is at the core of our, of our business. And so making sure that the acquisition opportunities that we present to you are high quality is always top of mind for us. We're also specialized in SaaS. We have the biggest pool of SaaS, buyers and founders in the world and also expert support in house. So we do have an M and a M and a team in house that can help with due diligence. We can help with really packaging startups up in terms of preparing them for acquisition. So when you sign that NDA and you access the listing, it has all the information you need. It has a P and L, it has a confidential information memorandum, it has a due diligence checklist, it has a plan for transition. And so we really do everything we can to make sure that we successfully help both buyers and sellers get acquired. And so to dive a little bit deeper. Like, what does that mean? Okay, so we help that the listings, like how do we actually do that? So for the majority of the listings that come in, we'll review the P and L, will help them set up a transition guide, will help complete their seller profile, and we'll actually give them something called a listing scorecard. So this is where we look at things like the business health, the metrics, the profile, and I'd say most importantly, the seller's level of preparation. So do they have all the materials that you need as a buyer to make a decision on? Is this worth my time pursuing, Is this seller serious? Is this price within recommended valuations that we're seeing on our marketplace? And so we do a lot to really take sellers and buyers and bring them together so you're both on the same page to help facilitate successful acquisitions. Now just, we're, we're jumping right in. So before I start, Rene, are you ready for this? We're going to dive into some live listings on the marketplace and we're going to give our take on these.

Let's do it. It's game time.

All right, so I'm going to go ahead and share my scre screen. Can everybody see the marketplace? Can I get a thumbs up on this? All right, so I'm going to just give a high level overview of the acquire.com marketplace. So this individual, Andrew Gazdecki is logged in right now. Fun tip. If you haven't installed our Slack application, I highly recommend you do that. You can get instant notifications when new deals go on the marketplace. But really what I wanted to show before we dive into these listings here is the ability for you to really narrow in on what you're specifically looking to acquire. So you can filter by revenue, multiple profit, multiple ttm, gross revenue, net profit, TTM for those not familiar, means trailing twelve months revenue And a number of other things, growth rate startup. So you can really, really get narrow with what you're looking to acquire and the way that our marketplace works. Again from a really high level. If I want access to this business, what I would do is sign an NDA and what this requires is a subscript to acquire.com so if you haven't subscribed to acquire.com what that does is it gives you access to our LOI builder, it gives you access to our asset purchase agreement builder and then also free escrow all the way to close. So not only do you get essentially unlimited deal supply, you also get tools that help you transact on our marketplace. And so you can see some deals are under offer. So definitely if you haven't registered for product. Com, definitely check it out because we have areas where you can look just based on your criteria. We have the most popular listings that you can view here and then also our top picks as a company. And the last thing I'll stay before we dive into what you're really here for is definitely check out the highlights but guided by experts. And this is where you're going to view the deals that are currently managed by our in house M and A team. So if you're looking for the highest quality deals, this is where you want to go because this is the area where we've spoken to the seller, we've reviewed their financials, we've helped them put together all the documents that they're that you're going to need to see as a buyer to really make an assessment if this is a good acquisition opportunity. All right, so we're, we're getting into it, Rainier. So we're going to start off with this business here. So this business is a SaaS startup. It's a social media growth and management software business for four businesses and individuals. It's asking prices 1.2 million. We're seeing a profit multiple of 3.7 TTM revenue, about half a million TTM profit, a little over 300,000. So this business is looking pretty good to me. But I'm going to hand it over to Rainier Ranier. Let me get your take on, on this business. What do you think?

Cool. Let me guide you through my thought process here as I look at these listings. So we have over 3,000 listings on our marketplace, almost 400,000 buyers in our proprietary database. So we know exactly what buyers are looking for on our platform, what type of multiples, what type of deal structures. The first thing that gravitates to my Eyes on this listing is the Profit at a 3.7x Prof. Multiple that shows that the founder is motivated to sell. Just to give you a perspective of what we're seeing, 4 to 5x profit multiple is what we've seen traded and we've got a really good pulse of the market. We know exactly what deals are trading for. Just last month we closed 53 transactions. In January, we've got another 200 plus under contract closing in the coming months. So first thing that I gravitate towards is the profit multipair, it's in line. The other thing is the profit margin. So the profit margin, it's profitable over 50%. This is going to get a lot of activity. If you look at the eyes of a sophisticated buyer, they want profitable SaaS businesses and if you, if you can get 50% or more, that's going to get tons of activity. Andrew, what are your thoughts?

Yeah, I, I personally I'm, I'm, I'm a fan of all startups but I always like anything that helps with social media growth and specifically within these markets there's always just a lot of different competitors and some may say that's a bad thing. Oh, it's a saturated market. But when I see this is you're essential buying strong product, market fit. There's a lot of other players in the market. So if I was going to, so I'm looking at this business now, the things that I like, I like to see that the business is growing. Low maintenance, 30 hours a week, one full time employee. If I was gonna actually sign the NDA and speak to the owner of the business, I'd really want to dive into this really with any listing you want to understand how like what does it take to operate the business? Because when you acquire a business the original owner is going to leave. So you definitely want to figure that out. One thing I always look at is reason for selling. So it looks like this one's essentially saying I've taken the business as far as it can go, which is a very common reason. 100% owned by the founder, no debt, no investors. I think it's a pretty good business. I mean a really good business. 45% growth rate. I like the amount of customers. So you don't have like businesses with like one to 10 customers. But the high numbers like this, you have customer concentration, risk. That's, that's probably what I would add. Anything else you want to add on this one before we move to the next one? Rainier?

Yeah, it hits a lot of the Fundamentals, if you look at the date, founded in 2018, that's great. Anything that has over three years of operating history does very well. Again, the annual growth of 45%, that's stellar. Anything that's growing year over year, that's going to get a lot of eyeballs. The customers, like you mentioned, there's not too much concentration, risk. The other thing too is with this I saw a question of how do you operate the business if you're in Estonia, the clients here are in English speaking countries. So the seller, it's actually an interesting story. They're company is the entities in Estonia. The seller is based in the Netherlands, but the clients are based all over the world. So it's a type of business where you can operate from anywhere as long as you have wifi and probably a signal, you should be good.

One thing. So if we're talking growth on these businesses, because a lot of people, you know, when you acquire these businesses, you're either, you know, acquiring for the, you know, profitability in terms of having, you know, a stable income stream, but when it comes to growth, every time, you know, I look at these businesses, I'm always thinking, how do I grow these things? So one thing that just really stuck out to me is available exclusively in the French market. So if you were able to just take this and then apply it to the market in the United States or wherever you're based, you essentially just doubled your tam or I guess arguably bigger because the United States is bigger than France. So this could be an opportunity. You know, you could actually, and this is something I did at my first startup where we would white label our platform and so what we do is basically duplicate it and then have. We had a Japanese version, we had a version that was translated, we translated the whole platform into 75 different languages. And so that could be an opportunity regardless of your location. So I like that. And then again, to Rainier's point, fair asking price, companies growing. Interesting market. I like it. All right, moving on to the next. We want to get through all these, so we might move a little quick and then we're going to do a Q and A at the end. All right, so next business. This one is an end to end parking management platform for private commercial and municipal parking spaces. It's asking price is open to offers. Looks like it's won some awards here, which is always Good to see. TTM revenue 8.7 million. TTM profit 1.3 million. So this is, this is a big, big business also founded in 2018. I'm not too familiar with this market but again, I always like looking at competitors. That's where I would do a lot of my initial in terms of understanding the, the tam. And it looks like they've listed out the TAM here. So I like that, but I'm going to pass it over to you. It looks like they've raised a little bit of money. What's your thoughts on this business here?

Yeah, this is an interesting deal based in the U.S. again, it's a profitable SaaS business. It's got tons of history, started in 2018. It's cranking out numbers in terms of revenue. The questions that come to mind is okay, the Profit margin is 1.3 million off of the 8.7. What is the low hanging fruit and how can I uncover some value and increase that profit margin? That's one of the first things I'd try to take a look at. But overall, good fundamentals in terms of being profitable got, you know, it is open to offer. So then that's another question that comes to mind. What's important to the seller? Price? Is it timing? Is it transition? Obviously price is important, but you can get creative with different deal structures with some sort of cash up front, some sort of delayed payments. Really you want to know what's important to the seller before you start putting a number on this because it's can get really creative and limit your downside risk by doing that.

Yeah, I like that. I also like kind of, you know, if I'm thinking about growing this business, you know, the first thing I'm asking is how'd you get your customers? Because we're seeing, you know, 10 to 100 customers here, growth rate about 10%. So I'd want to know how do we get more customers? That's always my, another one of my favorite questions because just doing what's working is just such a simple strategy when you buy businesses because the owner of the business is always going to know more than you. And so if I was going to buy this business, I would probably want the owners to stay on for a period of time in a consulting capacity, definitely to help a transition. But what I see here is a giant tam. And then I also kind of like the positioning in terms of their mission in terms of Americans lose valuable time. I, I don't go to San Francisco because it is, it is just impossible to park there. So maybe this one's hitting me personally, but I think there's, you know, a play here to, you know, really build upon the brand and take a play out of the playbooks of these other companies and really, you know, stand for something like, hey, we got this business that really solves a core problem. And I'm guessing by the customer count this is an enterprise SaaS play. And I love enterprise SaaS because the best part about enterprise SaaS is the ARPU on the ARPU stands for average revenue per account. So essentially you have large customers. And so if you're able to just get 10, 20, 30 and really have a sales motion in place, specifically an outbound sales motion, this business could probably scale pretty fast. So that's, those are the questions I would be asking. I also like how again it's, it's got five years of operating experience and then I agree with you Rainier, in terms of just understanding what the, the owners of this business would, why, what, what are they looking for in terms of an acquisition? Is it terms, is it highest price? So diving into this one, how would you, how would you value this one, Rainier? Just based on, I mean we know a little bit more than you know that we know that we've talked to the founder. This one has, you know, a pnl, sim, everything, lots of activity. How, how would you value this one? Or where do you, where do you think this one's going to land on?

Yeah, that's a great question. And again it's, it's with the open offers you need to know what's important to the seller because you can do an all cash price that may be lower than what is market and they may take that deal because they'd rather close in 30 days or 45 days or you can get creative if timing is not an issue. To have maybe a multiple that's a little bit above market but is a payback period over two or three years. It really depends. It's not as easy as slapping a multiple on this deal because there's a lot of nuance with this size of a deal. So it really has to do with, with knowing what's important to the seller, getting an idea of their valuation methodology and seeing how you can make it a win win situation for both parties.

Yeah, I would definitely agree with that.

It's in my opinion it could be, you know, in the eight figure range but again if you had an all cash price that could change things. So it really depends on what's important.

Yeah, I would probably value this one in the low eight figures. But again, reaching out to everything's in negotiation, you know, being able to speak with the buyer, building that rapport, really having plans to either grow the business, maybe you can offer upside in the business as you acquire. There's a number of different things.

Let me, let me tell a quick deal story as well. I just did a deal where we had multiple offers, over a dozen offers, and the founder ended up selecting the bid that was a lower price point because they got along with the buyer much better than the other buyers. And they really felt that, that the buyer understood her goal, her mission, what was important to her in timing, transition, taking care of her team. So obviously price is important, but there's other factors that you can take into account to help you win a deal.

Yeah, I can, I can speak. I like, I like that story and I know that story, but in, in one of my previous acquisitions, my, my sale price was way up here. It was way up here. I think this is very typical with startup founders is just take your revenue number, multiply by 10 or 20, whichever one makes you feel better, and that's your value. But when you sell your business, it doesn't work like that. And again, we have data on what buyers will actually pay for businesses. So the data that we have is actual acquisition data combined with, we work with a large amount of strategic buyers and private equity groups where we know specifically the ranges in which they will not go out of. Anyways, regarding my story, when I got an actual serious offer, everything changes. And I think of founders that we work with also experience that is this number up here, it's not real, but when you get a letter of intent, where it starts to get serious, maybe it's a little bit lower than their initial asking price. Like in my scenario, what was important to me was, you know, I had, you know, other offers, but ended up going with an offer with better term. For example, I wanted a quick transition. We had, you know, cash on hand that I wanted them to purchase so we could benefit from qsbs. So also offering favorable terms, and that can include, you know, quick due diligence, you know, again, to renew. That's a great point to really understand how to make this a win win. Like, how do you make this a win win for everyone involved? Because with acquisitions, everyone's going to be kind of, it's give and take. You know, as a buyer, you might pay more. As a seller, you might, you know, ask for better terms if the price is lower. So it's, it's all about really closing the gap and making it a win win, so everyone's happy. So that's, that's, that's great feedback.

Feedback.

All right. We're moving on, moving on. We're trying to get through eight deals here in one hour. All right, okay. So Rooney, are you ready for this one? All right, so this one is another SaaS startup based in California. Scale content creation with our powerful SaaS suite of SEO and AI tools for long form content. Asking price 540,000 3x multiple profit and doing about 230,000 trailing, 12 months revenue. And for TTM again really what that means is how much much total revenue have you made in the last 12 months? This isn't forecasted or anything weird like that. I love the margins on this raniere. What do you think?

First thing I, that I gravitate to again is the profit multiple. It's a 3x profit multiple that shows that the seller is motivated. Again, 4 to 5x is what we're seeing trade in today's market. And this is not a number that we're pulling out of thin air from real life data. Again last month, 53 transactions, another 200 under offer. We know exactly what's trading and how long deals are sitting on the market and what type of buyers. This just shows to the market, hey, I want to sell. I want to sell in a timely fashion. And again, this is profitable. It's above that 50% profit threshold. It does really well. It's over almost four years. Four years plus in terms of track record, it hits a lot of the boxes and I know Andrew mentioned this on the last listing but it's, you know, what's the reason for sale? Is it a want to sell situation or a need to sell? That's always a thing that you want to get an understanding of from the seller. Especially if you want to get an idea of timing. It looks like they've got a new venture. If they're making way more money in that other venture, there's an opportunity cost for them spending time on this startup and maybe they'd rather get out in a timely fashion and focus on the other venture.

Yeah, I love all those points and one thing I'm looking at here in terms of the business, if I was to acquire this, I would nuke the seven day free trial. So just, just basically pay. Oh, and a small tip. Any sort of business that I would personally acquire, I wouldn't touch anything for 90 days. Make sure you stabilize it. All assets are transferred, all the knowledge is obtained. But I see this right here. Okay, so now you got a bunch of free users. Now I'm wondering what is your conversion rate from free user sign up to paid User conversion and how can we increase that? So I think that's the first growth opportunity that I'm looking at that immediately because that is an easy way to really dial up these numbers here because again there is product market fit here. So really it's about thinking how can we accelerate what they're doing correctly and how can we learn from maybe what the owners have previously tried or maybe they're just not really trying too much and in this case they're starting a new venture so they're probably not aggressively trying new marketing channels or sales channels or what have you. But this right here, get rid of the free trial and see if you can increase the conversion rate optimizations. And one other thing want to point out too is you can connect your metrics on acquire.com so we can pull data from directly from billing sources. So if you are looking at a listing and you are unsure about the financials, maybe for some reason it does not have a P L or something just looks off. Ask the owner of the business if they're willing to connect their metrics and they can do so and that'll give you a real snapshot of their true financial health in real time. So that's a little tidbit here. And you can see the Google search traffic has been connected. But this right here we can connect SaaS metrics and then also just overall financials. But I like, I like this one because I think this one just has some easy low hanging fruit in terms of growing the business priced well. My only concern might be the AI stuff. I don't, I don't have too much knowledge on AI so this could be one that goes through the roof or goes the other direction depending on your strategy with the business. Business. I wouldn't acquire this business if I didn't have a plan in place to really grow the business. And I think there are some clear opportunities here and I also love seeing again tons of competitors because again when you're buying these businesses, you're not trying to build a billion dollar business. You're not trying to build this to a hundred million in revenue. If you can get this to just a million in profit per year, which is not easy to do but if you focus on it for two, three years, I think it's achievable. So I like this business. All right, now we're, we're going to Canada. Renee, are you ready for this one?

Let's do it. Let's go to Canada.

All right, so this is a social media CRM combined of personalized videos to sell high ticket products and services. I'm already excited because I like high ticket asking price 2 million. We're going to go over the numbers first 1 million revenue around 70,000. So great profit margins. Also multiples on this are looking really, really good. Let me get your take and then I'll go.

Yeah, this one. I know personally it's not a deal that I'm running, but one of our colleagues on the team, I know that the founder is, is great to work with, he's motivated. This is actually one of my favorite deals out of the lineup today. Just because I know that the seller is willing to make a deal and is open to different deal structures. Huge profit margin multiple at 2.9x. Again that's very, very attractive compared to what else we're seeing on the market. It stands out out of the 3,000 plus listings on our platform overall again, 70% profit margin. That's huge. Stellar in terms of the history. That's one thing that I'm kind of looking at and brings up questions. Okay, it was founded 2022. You want to make sure that if it's growing, especially like hockey stick growth or crazy growth, as a buyer you want to limit your downside risk. The last thing you want to do is take over a business that's growing like crazy and then you can't keep that same momentum and it flattens out or other direction. You just want to get an idea of how they are getting new customers, how they're increasing revenue, how they're growing at the pace that they're growing and get a firm understanding. And again as much as I look at the numbers, this is a great one because I know the founder, great to work with. Looking to make a deal Realist is fair in the asking price and transition. So this is something that I would really recommend.

Yeah, we're, we're going to be a little biased and say we like all of them but we, we specifically picked out these ones for this webinar. But I agree with everything that Rainier is saying and in terms of the numbers are just fantastic. I mean getting to 1 million in one year, that just a fun fact. Only 4% of SaaS startups ever get to 1 million in revenue and then out of those 4% it takes on average two years and eight months. So this is a deciles or top ranked. I can't pronounce the word right now but you know what I mean. I also like the customer count and then obviously the growth rate given it's a Year old, you're going to see a number of a hundred. But yeah, to Renee's point, I think this one has a lot of upside to it given just how quickly they've been able to scale the business up very capital, efficiently as well. And then the other part I like, like that Raniere mentioned is the temperament of the seller. You know, that's, that's one thing that I want to just kind of pause on right here. So there's a, there's a quote, a famous quote by Warren Buffett that says you can't do a good deal with a bad person. So this is also an individual that, you know, we've been working with and we've really enjoyed working with. And so when you're, when you're first meeting with owners of businesses, that's something you should also be betting for as well, is can you get along with this person because you're going to go through a lengthy due diligence process. Guess maybe not too lengthy, but like 30 days, 60 days, but in six months you might need like, you have a question or something like that. So just being on good terms and getting along with the owner of the business is just key to a successful acquisition. If you're, it could be the best business in the world. But if you're arguing all the time, I've, I've been on certain deals where I literally have told and advised the owner of a business to not work with a certain individual because I just don't see the, you know, it's, it's really going to work. And that's really how you sign an alli and it just falls through. So I think this is a great one just from the owner of the business. The market opportunity and the numbers are just fantastic. And the growth of this business in one year, I think is, is impressive. All right, we're moving on.

Can I add one last thing to that, that listing? Again, not every listing is perfect. And I do want to point out things that you should address again with the length of the history being your year and a half. The other thing is the business model. This business model, it's a lifetime deal with an upfront payment of 1500-2000. So as a buyer, you need understand how can turn this into a recurring revenue type of business. And that's not an easy answer, not any fix. But if you can crack that puzzle, that's how you add tons of value. A deal like this, where you're getting it at a 2.9x profit multiple and immediately increasing value Once you crack that puzzle, turning it into recurring revenue.

Yeah, I like that. Fun fact. I believe in the early days I gave a few lifetime deals away for both business app and microacquire. Now acquire.com obviously and then transitioning those customers over towards, or excuse me, new customers over towards recurring SaaS model obviously really helps the trajectory of the business because you can just predict how much money you're going to have each month. Much better. That allows you to forecast. Okay so I have this much capital coming in. I'm going to allocate this towards marketing, customer acquisition, whatever it may be. And it just allows you to be more predictable. I always say, you know the best businesses, you know, when it comes to go to market it needs to be predictable, repeatable and scalable. And so I think that business has a big opportunity to really put in that predictable, repeatable and scalable. I have this much capital coming in. I'm going to allocate this towards marketing, customer acquisition, whatever it may be. And it just allows you to be more predictable. I always say, you know the best businesses, you know, when it comes to go to market, it needs to be predictable, repeatable and scalable. And so I think that business customer acquisition strategy. All right, moving on the next. Renee, you ready?

Yep.

All right. All right. Reforestation CSR SaaS company. You're going to have to help me out with this one. Open offers. I'll go over the numbers Rene, and then I'd love to Hear your take. Revenue 1.3 million profit about a hundred thousand. Also when you see guided by experts right here, this means our team is involved. That means higher level of due diligence has been applied side we're really working with the founder to help sell this business. So these are much, these are motivated sellers and definitely so when you see this badge, just know that this one has, it's been looked over as a big opportunity to really put in that predictable, repeatable and scalable. And we're, we're actively helping the, the seller get acquired. So profitable reforestation SaaS company. I haven't read this one before so this is, this is totally off the cuff. We Curate, Design, Execute 1, 1 for 1 Reforestation Tree planning programs for enterprise. Okay, I'm getting excited if you guys aren't catching a theme. I love Enterprise SaaS because it's so much easier to scale when your customers are large. And my business in the past that I've worked with have been enterprise. So there may be a little bias there, a significant milestone. Our journey is the Successful signing of a two year renewal with a prominent industry SaaS client. All right. Right. Oh I even got metrics connected. Okay so this is what I'm saying. So if you got, if you're working with a business owner and you want to actually see them connect their metrics, just ask because this provides a lot of information. All right, I'm passing over to you Rene. What do you think?

Yeah, let me give, let me get give you guys some context on why Andrew loves the enterprise. When we talk to private equity buyers and a lot of these investment groups and funds we've got all different types of buyers on our platform. Right.

Customer acquisition strategies. All right, moving on the next Renier, you ready?

Yep.

All right. All right. Reforestation CSR SaaS company. You're going to have to help me out with this one. Open offers. I'll go over the numbers Raniere and then I'd love to hear your take.

Investors, investment groups, private equity, even public come work with they salivate when they see B2B SaaS profitable 1 to 5 million ARR 3 to 5x EBITDA bootstrap competitive landscape that checks a lot of their boxes when it comes to to an ideal listing. The reason I like this deal is if you look at the profit margin it's connected to quick revenue.

13 million profit about a hundred thousand.

Books and it says 94,000 off point 3 million. I know that this seller has been including personal expenses and other non normalized expenses. So this profit margin is actually a lot higher. Last time I checked it was 50% plus. So right off the bat you're uncovering hidden value by digging into the P and L and realizing that you're uncovering hidden value because it's not 94,000, it's actually a lot higher. There's a lot of expenses that are on here that shouldn't be and so that's one way that you immediately uncovered hidden value. Another thing too is the length of the business history. It was founded in 2015. It's proven its market fit. Established history. Another one where the seller the founder great to work with fair open to making a deal, making a win win situation. The reason it's open to offers it's much. It's not as easy as slapping a multiple and really need to get an understanding of okay, how do I increase my client count because it looks like the customer count could be concentrated. Another thing is okay, Even if it's 50% plus profit margin already, how else can we continue increase profit margin? There's a Lot of questions on here but in terms of some of the boxes that it checks and the first.

Things I gravitate also when you see guided by experts right here this means our team is involved.

That means towards profitable SaaS long history of operation metrics are all connected.

Higher level of due diligence has been applied. We're really working with the founder to help sell this business. So these are much, these are motivated sellers and definitely did.

And again if you look at the P L there's non normalized expenses on there so it's actually much higher profit margin. And then when I look at the, in terms of the description and it's like oh this is one of those businesses that you're kind of doing really good for the world. You're, you're planting trees and you're doing all that so that I, I like.

That and you know I like boring businesses. I know we just talked about like parking reef so when you see this badge just know that this one has, it's been looked over like what's interesting about these businesses is they're not as sexy as you know some of the other ones like the social CRMs and you know we have some other ones that I think are, are, are much more popular. But these businesses, not many other entrepreneurs are going to step in and try to compete with these businesses because they're so unique and so I think that that gives you a competitive advantage just in the market as a whole. And I always say that you know competition today really isn't the three companies that sort of do what you do. It's customer attention. So with this business I think there's a really good opportunity to really level up the storytelling, the brand of the business positioning it as, you know, really outlining what they stand for. And I'm sure they already do this. I haven't gotten the back end details like Renee but they've been in business for almost a decade. That's always a good thing because it just shows the, the product market fit. It isn't just a one time two year sort of trend. It's something that's carried over.

I saw one of the, and we're.

We'Re actively helping the seller get acquired. So profitable reforestation SaaS company it was.

Like oh that seems to be slow growth over the last 10 years. That's true with this deal.

I know that I haven't read this one before so this is, this is totally off the cuff. We Curate Design XC1 One for One Reforestation Tree planning programs for enterprise okay.

Founder spends less than four hours a week on the business. So it's basically funding a lifestyle type of business where it's like, hey, it's kind of just been on the back burner. Spend a few hours on it. And for different buyers that's, you know, some buyers are looking for that lifestyle business. Maybe they're not looking to double the revenue overnight or maybe that's not something they want to focus on if it's their first time in this type of business model. Model. Maybe something like this could be a fit already cash flowing. And again, if there's personal expenses that are being run through on the QuickBooks, that's another sign. It's like, hey, this is something that's a lifestyle business where it doesn't take time to maintain.

Yeah. One thing I'd also note too is if the gag. I'm getting excited if you guys aren't catching a theme. I love enterprise SaaS. Business is profitable. Growth is always going to be lower. When I was running business apps we, I always ran it at break even because we were pushing for growth. Growth, growth, growth. Everything is being reinvested into growth. But these businesses, you know, as they become profitable I view that as a, as an opportunity for you as a buyer. So if you want to push up growth, you have excess capital to reinvest into the business if you're able to run it at break even or you can apply things such as raising pricing again, really accelerating what's already working within the business. And by the sounds of it, the business owner, when we look at the reason for selling, which I'll get back to, isn't really focused growing the business. So this could be a great opportunity for someone to come in when someone buy. What I love about acquire.com and my favorite stories are when people come into businesses and they just breathe more energy and more excitement around it and just really just reboot the business. I think this could be a great opportunity for someone that has, you know, those skill sets. And then also yeah, I, I, I always, you know, businesses that have a, because it's so much easier to scale when your customers are large and, and my businesses in the past that I've worked with have been enterprise so there may be a little bias there. How do you say it? Just a positive impact on the world. I think are, are just, they're fun to run. A significant milestone. Our journey is the successful signing of a two year renewal. And I think there's also a story to tell here. Reforestation SaaS and the other Thing to.

Add to the reason for sale. I mentioned this on the last listing. Is it a want to. It'd be nice to sell or a need. This one, it sounds like it's a life event seller here. Starting a family. I know they've personally worked on other real estate projects. They've got other opportunity costs in terms of taking care of the family, Starting a family, investing in real estate. Everyone has their reason. Everyone goes through life. Everyone has their reason.

For sale with a prominent industry SaaS client. All right. Oh, and even got metrics connected. Okay.

So this and for this specific founder, they've worked on this for eight years and they've realized, hey, someone else should take over the business and grow it and do other things with it. I need to focus on starting a family.

Yeah, that's a good call up. All right, next one. All right, QuickBooks integration with 99% market share growing MRR and less than 40 hours invested per month. So as soon as I saw this one come on in the, the rp, I, I told who's working this one? Raniere. Is it, is it Kai that has this one?

Yeah, I believe so.

Yeah. Before this even went live on the marketplace, I was like that. This one's going to sell really fast. Okay, so we got, we got a fair, fair multiple on here. Anything 4 to 6 pushing 7 I think is, is good. If you can get below that, you know, that's, that's a really, really fair deal. When we're talking numbers here, about a quarter million, this is, this is something I would buy. So I might, I might talk a little too much in here, but feel free to interrupt now. So what I love about these businesses is it's a quickbook integration specifically, is what I'm saying. So if you got, if you're working with a business owner and you want to actually see them connect their metrics, um, just ask because this provides a lot of information. All right, I'm passing over to you, Renee. What do you think for Monday.com customers? So it's a B2B SaaS solution that streamlines financial and operational processes by merging QuickBooks accounting capabilities with Monday.com.

Yeah, let me get, let me give you guys some context on why Andrew loves the enterprise when we talk to.

Prior project management tools. So how would I grow this? So I'm assuming, you know, strong product market fit, been in business for more than three years that checks my boxes. We have a 14 day free trial if I bought it. Not me. Everybody's paying and looking for reason for Sale, lack of time. So this is another, you know, looking to sell. The founders have another company they're working on full time which is expected to be an Inc. 500 company.

Private equity buyers and a lot of these investment groups and funds. We've got all different types of buyers on our platform.

Oh this is sort of, this sounds like a motivated seller. Now the first thing I would do is I would figure out out how to find as many Monday.com customers as possible. And there's easy tools to do that. There's so many ways one is built with are they using them? You can also just. That's probably the first place I'd go and then I'd really, you know, figure out how are they currently attracting customers and just do more of that. But it looks like they've achieved dominance in the Monday apps Marketplace, owning a 99% of Marketplace market share. They've grown 189,000 last year. Okay generated 200,000 requiring less than 40 times. So this one looks like, gosh, if you're able to just spend, I don't know, more than 40 hours per month. This one seems really investors, investment groups.

Private equity, even public come work with. They salivate when they see B2B SaaS profitable 1 to 5 million ARR 3.

To 5x EBITDA, massive lots of growth opportunities. And again Monday.com is a huge, huge, huge company. So I always love businesses that integrate, have built in distribution, have customers that you can specifically target. Because when you're building a go to market strategy, the number one thing you need to know is who is your ideal customer. And so this one right here is.

Telling you bootstrap competitive landscape that checks a lot of their boxes when it.

Comes to it's Monday.com users. So figure out a way to get a list of Monday.com users and ask. Just run a. I'd spin up probably a new domain, warm it up a little bit so it doesn't hit spam and then I would just run a really strong cold email campaign to Monday.com customers and say do you have this problem? And then I'd hop on the phone and say do you have this problem?

So I'd also probably ideal listing. The reason I like this deal is if you look at the profit margin it's connected to quick by raised pricing.

As well because some Monday.com customers are also enterprise customers. So you could be working with a large team or a small team. So I'd really want to understand how are they specifically acquiring customers. But it sounds like all they've done is acquire required customers through the marketplace. And if you're able to apply an additional like my favorite acquisitions are one where there's only one distribution channel stood up and right now it looks like it's distribution through they're finding customers through the Monday.comapp store. And so if you can stand up, you know a cold outbound campaign, maybe it's a social campaign. Whatever your expertise is paid ads, conversion rate optimization. This one and also this one will sell fast. So um, Raniere, I'd love to hear your, your take on this one.

Yeah, this is a good one. I I don't want to sound like a broken record but it's. The profit multiple is right there in line. Profit margin well above the 50%. Again, as private equity and investment groups they, they salivate towards these metrics and this is what they look for. US based B2B SaaS profitable 3 to 5x of EBITDA books and it says $94,000 off.3 million. I know that this seller has been including personal expenses and other non normalized expenses. So this Prof. Actually a lot bootstrapped. It's it hits all the boxes except for one thing. This is why it's a good deal for the private investor because it doesn't hit that 1 million ARR to 5 million ARR that most private equity and investment groups target. This hits under the radar. So for a private hire, last time I checked it was 50% plus. So right off the bat you're uncovering hidden valid investor or maybe a small investment group. This is a perfect deal because you're not competing against private equity or the guys that can pay all cash or majority cash and outbid you this type of transaction.

Yeah I completely agree with that and I think this one would just be fun to grow and experiment you by.

Digging into the P L and realizing that you're uncovering hidden value because it's.

Not with also I mean geez. Editor's choice designation awarded by the Monday so this is a great product. It's unloved. It just needs a new owner to breathe fresh life into it. Stand up. Another go to market strategy, another customer acquisition channel. And I think you could actually acquire this business and it ain't easy but I mean doubling the business I think sounds very realistic. Tripling and quadrupling also just depending on your strategy, learning what works, what has been tried. But to Renee's point, yeah this one does check all the boxes. So if anything if you don't believe us, save this URL, check it in a month and see if it's under offer because I will bet money it will be. All right, moving on to the next one. All right, we got two more and then we're going to move over to Q and A. We're probably going to go over an hour. I apologize. We've been trying to go through these quickly, but this is, this is fun. I hope you all are enjoying this. Okay, so Renee, are you ready to go to the uk United Kingdom?

Let's do it.

All right, so we got SaaS for building internal work apps and digital assistants that automate tasks and improve productivity. So right now I'm going. I like all of this right now.

Because that is 94,000. It's actually a lot higher. There's a lot of expenses that are on here that are, that shouldn't be. And so that's one way that you immediately uncovered hidden value. Another thing too is the length of the business history. It was founded in 2015. It's proven it's market fit, established history.

The theme amongst many, many businesses in terms of how do we become more capital efficient, how do we improve our productivity. That pretty much these two right here are pretty much the main things that everything every business is looking to to do open doing 1.7 million in TTM revenue. Of that about 200,000 in profit also guided by our team. Value based pricing. Look at that. Okay, we got 12 month contracts. I like that. Value based pricing starting at. So this is actually a. I'd consider this. Typically anytime there's, there's a rule of thumb with outbound sales or you know, outbound strategies. Um, there's a really good graph another.

One, one where the seller, the founder, great to work with. Fair, open to making a deal.

I share it on Twitter if you want to scroll down my Twitter but where you have elephants, deer, rabbit, mice. It basically says you know, path to a hundred million dollar SaaS company and you really want if you're going to have an outbound strategy in terms of, you know, it's where you're actually picking up the phone having a sales process. You need the, the lifetime value of the typically be above 20,000 for it to make financial sense. What I mean by that is customer acquisition costs and the lifetime value ratio usually want that to be 3 to 1. And when I see a number such as this, I mean I'm just going to assume that's 2,000amonth and times that by 12, that's 24,000. So it's 24,000amonth as a based starting price, if I'm understanding that correctly and going over other numbers. When was this business started? 2017.

Yep.

All right, I'm saving you from repeating yourself, Renee, because that's always a good call out. Because that is important. That really there's, there's six years of learnings in that and there's a lot of value in that. And so when we look at the numbers. All right, Renee, I'll hand it over to you at this point.

Yeah. If we scroll down to the reason for selling again, this is something that I like to look at first. Looking at making a win win situation. The reason it's open to all offers. It's much. It's not as easy as slapping a multiple and really need to get an understanding of okay, how do I increase my client count? Because it looks like the customer count could be concentrated. Another thing is listing. It's like, is it a want to sell situation? Need to sell. This one is great because the founders have realized, okay, we're, we've done great in startup mode, but now we know that another team could come in here with the proper sales, marketing and growth experience to take it to the next level. And this is existing team has done very well in the seven years that they've had the business. And it's profitable. SaaS is okay even if it's 50% plus profit margin already. How else can we continue increase profit margin Hits a lot of the fundamentals that we look for. And in terms of the reason for sale, this is always great when this founder knows, hey, I might not be the right person to take it to the next level at this point, I'm open to seeing can take this to the next level and who would be a great fit. And then you start thinking, thinking about again, price is important, but transition the legacy, taking care of the team. There's a lot of things that is also important for this founder to make it a win win situation.

Yeah, again, I would agree with all that. So if, if you are all getting excited about, you know, accessing these deals, what you can do is go to acquire.com and then check out our, our pricing programs in terms of how to access these listings. So we have two different pricing programs where one allows you to access all startups under 250,000 TTM revenue. So essentially this is for, I'd say about, you know, half the listings that we showed and then for larger listings for 780 a year, you get access again to our LOI builder, our asset purchase agreement builder. Free integration into escrow.com we also have a number of ways to help get you.

There's a lot of questions on here but in terms of some of the boxes that it checks and the first.

Things I gravitate priority deal flow. What I mean by that is anytime a list listing comes on towards profitable.

SaaS long history of operation metrics are.

All connected marketplace that meets meets your specific criteria you'll instantly be notified. So if any of these look interesting upgrade to a premium or did.

And again if you look at the P L there's non normalized expenses on there. So it's actually much higher profit and.

A buyer and you can get access. You sign the NDA and you can begin speaking with so behind this, just to kind of clarify that a little bit more if I request access sign the NDA the next thing that's going to happen is I'm going to know the business name. I'm going to be able to chat with the owner of the business. I'm going to be able to review the P L. Typically there's if you see this right here got a.

And then when I look at the in terms of the description by expert.

There'S going to be a ton of different materials so you can really understand the business on a deeper level. So shameless plug there. All right, so last one and then we'll move to Q and A. All right Renee, are you ready to go to Washington?

Let's go to Washington. Washington.

All right, so this is a suite of 17 popular web web development plugins on Bubble IO with thousands of paid and free subscribers. Asking price about 700,000 looking at about a 6.5x profit. Multiple revenue has grown 48 year over year. Highly profitable. 97 margins. That was extremely high. Rene, what do you think of this one?

Again you look at the multiple. It's still in range of what is selling on our marketplace. Again 4 to 5x sometimes 6, 6 and a half again with a profit mar like 97% it makes sense why they're asking on the upper range of the profit multiples. And again look at the history. Started in October 2019, huge profit margin and then it's again under that typical size that you'd be competing against private equity or other investment funds. And it's like oh, this is one of those businesses that you're kind of doing really good for the world. You're you're planting tree group. So this is where you have less competition in terms of the buyer pool but still great fundamentals and you're doing all that, so that doesn't matter.

Bonus. I, I like that and you know.

I like in terms of length of the history, multiple profit margin and even the growth.

Yeah, I, I'm looking at like boring businesses. I know we just talked about like parking refund. The reason for selling too. And you buy this business, you can change these people's lives. That's why I love acquire.com so much. Shameless plug. Again, just looking to buy a home and maybe buy a house. Now talking about this business. Okay, this one has some upside. So the one thing that stood out to me where I said, whoa, let me see if I can find it. Oh, here we go. They have 12. Like what's interesting about these businesses is they're not as sexy as, you know, hundred paid users and they have 50,000 free users. So again, if it was me, I would see if I could just. You have a pool of like, just imagine if you were able to convert 5% of these over to paid, you would essentially have doubled the business just like that. Again, easier said than done. But, but I think by. I'd want to speak to the owner of the business and understand what made people upgrade and pay and then what ha. What are, what's going on with the free users and what sort of potential is there for me to convert these free users over to paid users? Because that is a huge opportunity. You're sitting on 50,000 total free users. Is there some sort of discount I can offer them? Is there some sort of functionality that's missing? Have they, they ever. Is there any email nurturing campaign set up? Is there any sort of marketing strategy to really encourage these people to upgrade to a paid plan? So I think that's, that's a huge opportunity. And then also reason for selling. We see this often where, you know, life, life is life hits and some of the other ones like the social CRMs and you know, we have some other ones that I think are, you know, you have to sell because you want, want to pay off debt, you want to buy a home. Those are things that I hope all of you want to do at one point in your life if you haven't already are, are much more popular. But these businesses, not many other entrepreneurs are going to step and then just again understanding what is driving the growth and how can I accelerate in and try to compete with these businesses because they're so unique. And so I think that, because again this one reminds me of the, the QuickBooks integration where I could reach out to. Sorry, moving too many tabs I could reach out to other bubble customers and really understand what do they love about this product, what do they not like about this product? But it is the customer ICP is so clearly defined that gives you a competitive advantage just in the market as a whole. And I always say that, you know, they have to be bubble IO users and then you're sitting on a pool of thousands of people that haven't subscribed yet. And I think that's a huge growth opportunity. Raniere, any, any last words on this one before we move to Q and A?

Yeah, the other thing I'd like to add is, you know, we're obviously talking up about all of our listings, but you really want to know why they're selling, if there's any red flags. Again, not every listing is perfect. But with our founders, we coach them to be as transparent as possible. Is there a reason why there's 50,000 total free users and he hasn't converted more than the 1200? He's got to know really want to dig deep and ask that question and if he's tried different strategies to convert and if maybe he has and he's like, hey, there's so much competition, there's other people providing free option as well. In this space you want to know these things. And don't be afraid to learn about problems in the business. It's not problems that kill deals. These are ways that you can add value to these businesses upon acquisition. It's surprising. And the thing that we coach with.

Our founders competition today really isn't the three companies that sort of do what you do. It's customer attention. So with this business, I think there's a really good opportunity to really level.

Up the store, be transparent, be open. What are the downs side, what are the things going wrong with the business? And let's be upfront about it and make it a win win situation.

Yeah, I, again we are being biased on all these deals because we are, you know, representing them and we do retelling the brand of the business, positioning it as, you know, really out hoping to see them get acquired. But these are good, good acquisition opportunities because they're all profitable. They have clearly found product market fit. Something is working within the business. They're valued within RA that we're seeing the market pay for their motivated businesses. And some of them are just, gosh, the growth upside. I'm, I'm candidly seeing some of these for the first time because we do have so many businesses like Rainier said, we lining what they stand for and I'm sure they already do this. I haven't gotten the back end. 200 plus businesses under contract right now headed towards a successful acquisition. So I know that we were going to do Q and A but I want to, I want to keep this to an hour. So we're going to save Q and A for possibly another webinar. Mar, you want to take maybe like we can handle like three questions then we'll, we'll call it.

Sure thing.

All right, sorry everybody. We went, we went really, really hard on the getting through those deals. So we're going to see how many questions. So we'll do 10 minutes of Q& A and then we'll call it and then if you have any additional questions and also if you have to run at top of the hour, this is recorded so you can get the recording after it's gets edited and we'll get that over to you. But okay, first question. How does acquire.com vet deals? Okay, so from a high level how it works is you complete your listing on acquire.com we typically will speak to the founder and we'll give our recommendation in terms of how an acquisition works, the process, how to speak with buyers, how to prepare for an acquisition. But tales like Rainier, but again they've been business for almost a decade. That's always a good thing because it just shows the, the product market fit. It isn't just a one time, two year sort of trend. It's something that's carried over.

I saw in one of the things.

That we look for is are they pricing just way too high? And we just, we know no one.

Comments it was like oh, that seems to be slow growth over the last 10 years. That's true with this deal I know that the founder spends less than four hours a week on the business. So it's basically funding a lifestyle going.

To pay that like maybe. But you know we don't, we don't.

Sell type of business where it's like hey, it's kind of just been on the back burner, spend a few hours on it. And for different hope.

At acquire.com we sell reality. So that's a big part of our, our vetting process is if it's priced just too high, you know, we just, we aren't going to be able to help that business.

Buyers that's, you know some buyers are looking for that lifestyle business, maybe they're not looking to double.

And then also things that we look at is, you know, we'll it through a wayback machine and see the Revenue.

Overnight or maybe that's not something they want to focus on if it's their first time in.

You know, you say you were active in 2018. We verify that. We asked for P. Ls. We verify that. But due diligence is always on the buyer. No matter if you're working with a broker, investment bank, whoever. Maybe it's always going to look really, really good. Do your own due diligence. That's just, just a, a standard one.

That if you type of business model maybe something like this could be a fit already cash flowing. And again if there's personal expenses that are being run through on the QuickBooks that's another sign. It's like hey, this is something that's a lifestyle business where it doesn't take time to maintain.

Yeah. One thing I'd also note too is if the business is profitable, growth is always going to be lower. When I was running business apps we I always you take everything at face value. You're not really doing an acquisition, you're just, you're setting yourself up for failure because there's probably parts of businesses you're going to love and then also not love. So definitely do your own due diligence on top of ours. But we are a vetted marketplace where we do have to say no to about more than half of the startups that list on our marketplace at break even because we were pushing for growth, growth, growth, growth. Everything was being reinvested into growth. But these businesses, you know, as they become profitable, I view that as a, as an opportunity for you as a buyer. So if you want to push up growth, you have access to US capital to reinvest into the business if you're able to run it at break even or you can apply because they're just not a fit for the buyers that we work with and really what we feel is needed to have a successful transaction take place because we want to, we want to create life changing outcomes and if we don't feel that the numbers add up or the seller expectations are just too aligned with what we're able to achieve, things such as raising pricing again really accelerating what's already working within the business and by the sounds of it, the business owner, when we look at the reason for selling, which I'll get back to, isn't really focused on growing the business. So this could be a great opportunity for someone to come in when someone buy. What I love about acquire.com and my favorite stories are when people come into businesses and they just are within what the market Is, you know, telling us that's how we vet deals. Okay, I'm, I'm going to go through these quickly right here, but jump, jump in if you do. Okay. How should I tackle a good listing with the asking prices over open offers? All right, I'm going to give that one to you.

Cool. We had a couple open offer listings that we went over today and again, it's as a result of our special.

Breathe more energy and more excitement around and just really just reboot the business. I think this could be a great opportunity for someone that has, you know, those skill sets. And then also, yeah, I, I always, you know, businesses that have a, how do you say it, just a positive impact on the world, I think are just, they're funner to.

And SaaS, we know what metrics to look for. But to give you the simple answer, ask the seller what is most important to them. Is it price? Is it timing? Transition? Get an idea of what's important to them because a lot of times it could be the legacy and the transition and taking care of their team more than price. And you can get creative with a different deal structure. So if it's open to offers and.

I think there's also a story to tell your reforestation, SaaS and the other.

Thing to add to the reason for sale. I mentioned this on the last, last listing. Is it a want to. It'd be nice to sell or a need? This one, it sounds like it's a life event. The seller here, starting a family. I know they've personally worked on other real estate projects. They've got other opportunity costs in terms of taking care of the family, starting a family. Get to know what's important to the seller and then also ask them, what's your valuation methodology? What, what are you expecting? And then once you have an idea, we can help you craft an idea because it's not as easy as just slapping a multiple of these listings especially.

That's a great answer. Okay, moving on. How does acquire.com help a buyer financing? Quick answer on that.

So we do have a third investing in real estate. Everyone has their reason. Everyone goes through life. Everyone has their reason for sale. And for this specific founder, they've worked on this for eight years and they've realized, hey, someone else should take over the business and grow it and do other things with it. I need to focus on starting a family.

Yeah. Third party financing partner bupos. So if you're evaluating a deal that's based in the United States and is doing at least 100,000 in profit. We can help connect you with the Boo's team and it's good call up. All right, next one. All right. QuickBooks integration with 99% market share. They could we work with like a number of different financing partners, but they're our preferred lender growing MRR and less than 40 hours invested per month. So as soon as I saw this one come on in the but the arpiva I I told who's working this one. Raniere is it. Is it Kai that has this one?

Yeah, I believe so.

Yeah. Before this even. So if you have questions about buyer financing, just shoot an email to supportquire.com.

Can I add one thing to that? So with financing as a result again of our SaaS specialization, we can arrange creative deal structures with you seller as well. So again if you will try to get you qualified with bupos or if you work with an SB lender, great. But there's also opportunities where there's seller seller financing or went live on the marketplace.

I was like that this one's gonna sell really fast. Okay, so we got, we got a fair, fair multiple on here. Anything between you know, four to six, pushing seven I think is, is good. If you can get below that, you know that's, that's a really, really fair deal. When we're talking numbers here, about a quarter million.

This is this creative deal structures that we can help facilitate because we know what type of deals and how much cash upfront transactions are closing for today. So just let us know when we can help get creative.

Yeah, completely agree. And you can also build a lot of this into your offer using the letter of intent builder. From seller financing to conditional holdbacks to earn out is something I would buy. So I might, I might talk a little too much in here, but feel free to interrupt now. So what I love about these businesses is it's a Quickbook integration specifically for Monday.com customers. So it's a B2B SaaS solution that streamlines a number of different ways to make real professional offers within minutes. So definitely check financial and operational processes by merging QuickBooks accounting capabilities with Monday.com. check that out if you haven't already. All right, next question. Where can I find startups receiving expert help from acquire.com so when you're on the main listing page, I'll pull it up real quick. Again, basically you just want to go right here and then if you want to see you just click on this Project management tools. So how would I grow this? So I'm assuming you know Guided by experts and also pre approved for financing as well. So if I wanted to show all strong product market fit been in business for more than three years that checks my boxes. We have a 14 day free trial if I bought it. Now me everybody's paying and looking for reason for sale lack of time. So this is another you know looking to sell metrics just as an example this is what all metrics look like. I can see the billing system but if you're just interested in interested in working you want to be you want that assurity that the acquire.comm and a team gives you. Again just go to all listing the founders have another company they're working on full time which is expected to be an Inc 500 company. So it's click guided by experts and those are typically the best deals to check out. Oh this is sort of this sounds like a motivated seller. Now the first thing I would do is I would figure out how to find as many Monday.com customers and as possible.

Those listings will have a sim. They'll have trailing financials the transition guide.

We'Ve coached and there's easy tools to do that. There's so many ways one is built with are they using that the founders.

In market positioning pricing expectations of the market. So it's going to be a lot more fluid and seamless of a transaction versus if it's a seller that doesn't have any.

You can also just. That's probably the first place I'd go and then I'd really you know figure.

Out how material diligence document and if their price expectations are not what's actually.

Trading how are they currently attracting customers and just do more. Yeah, let's pause on that too because man gosh, I have seen so many acquisitions that but it looks like they've achieved dominance in the Monday apps Marketplace owning a 99% of market where me and you have like saved because of one issue or another. And what we mean by that is you know a big part of our job is you know get share. They've grown 189,000 last year. Okay generated 200,000 requiring less than 40 times. So this one looks like gosh if you're able to bringing serious sellers and serious buyers together on a win win offer just spend I don't know more than 40 hours per month. This one seems really passive. Lots of growth opportunities and again Monday.com is a huge, huge, huge company. So I always love businesses that that integrate have built in distribution have and help close that or help it all the way to, to close. So we do a lot in the background not just for the founders but also for buyers. And in terms of you know, how do you win this deal or what is the seller's expectations or you need legal advice customers that you can specifically target. Because when you're building a go to market strategy, the, the nice or as. So we have help a lot on both sides so we can really help with those life changing outcomes that we're trying to achieve@acquire.com so great points on that. Rainier. Okay, I'm gonna quickly answer like two questions and then number one thing you need to know is who is your ideal customer. And so this one right here is telling you it's Monday.com users. So figure out a way to get a list of Monday.com users and ask just. And now let's just keep going. Okay, so how do buyer recommendations work? All right, so we, we do run a spin up probably a new domain, warm it up a little bit so it doesn't hit spam. And then I would just run a really strong cold email campaign to Monday.com customer. You have this functionality where if you enter in your criteria going back to the marketplace, you will actually be notified as soon as a new listing hits the marketplace. So if my criteria is I don't want to see any SaaS companies ask and say do you have this problem? And then I'd hop on the phone and say do you have this problem? So I'd also procing over I don't know, 7 8x anytime it hits the marketplace you will immediately get a raise pricing as well because some Monday.com customers are also enterprise customers. So you could be working with a large team or a small team. So I'd really want to understand how are they supposed to email notification and then also we have a daily newsletter and then a typically acquiring customers but it sounds like all they've done is acquired customers through the Marktop Picks newsletter that we send out for the deals that we are representing presenting as an M and a advisory team. Now moving on to the next question. Is profit more important than revenue when evaluating deals? Renner, you want to take this one?

It's a, it's a very important metric. Again we've we've got place and if.

You'Re able to apply an additional like my favorite acquisitions are one where there's only one distribution channel stood up and right now it looks like it's distribution through they're finding customers through the Monday.comapp store. And so if you can stand up.

You know a cold out almost 400,000 buyers in our proprietary database. Over 1.5 billion in verified funds. We know what buyers are looking at when they're looking at listings and what they're making offers at outbound campaign maybe.

It'S a social campaign whatever your expertise is paid ads conversions they're both going.

To be important metrics but for me personally as well as a lot of buyers they to price off profit and again adjusted profit normalized expenses.

Adjusted profit yeah drain optimization this one and also this one will self ass so Rene, I'd love to hear your your take on this one.

Yeah this is a good one. I I don't want to sound like a broken record but it's the profit multiple is right there in line profit margin well above the 50.

That's definitely what we're seeing I think you know in in years prior I would see acquisitions just losing money you know didn't care but you know I think one thing to understand is typically you know you the best businesses to.

Buy that aren't percent again as as private equity and investment groups they they salivate towards these metrics that extremely profitable.

Have to be growing really fast in my opinion because that means they're capital efficient.

This is what they look for US based B2B SaaS profitable 3 to 5x of EBITDA bootstrapped It's it hits all the boxes except for one thing. This is why it's a good deal for the private investor because it doesn't hit that 1 million ARR to 5.

Million ARR and they're using that capital to grow the business and what we've seen over the last two years just with the macro market changes is really a flight to safety in terms of capital efficiency and profitable growth. So absolutely are that most private equity.

And investment groups target this hits under the radar so for a private with.

You on that answer. So all right this is going to be the last question we'll see investor.

Or maybe a small investment group. This is a perfect deal because you're not competing against private equity or the guys that can pay all cash or majority cash and out outbid you type of transaction.

Save the rest for another time. But since we're just going over here I'm gonna yeah I completely agree with that and I think this one would just be fun to grow and experiment 1 All right Rene, this one's all yours. What are the red flags in a listing I should watch out out for and if a seller is reluctant to share information with me. What should I do with also I mean Gez Editor's choice designation awarded by the money. So red flags. Reluctant seller. What do I do?

Great. Again, you want to be trans.

So this is a great product. It's unloved. It just needs a new owner to breathe fresh life into it. Stand up. Another go to market strategy, another customer acquisition channel. And I think you could actually acquire this business. And it ain't easy, but I mean doubling the business I think sounds very realistic. Tripling and quadrupling transparent.

And the seller wants to be transparent because problems don't kill deals. It surprises. If the seller is upfront with you being honest. Honest. Bringing up all the things they've tried, bringing up all the things that didn't work, that's a good sign because they're being transparent. It's a red flag. If it seems like they're hiding information or you're digging into information in the due diligence and then something comes up and they didn't bring it up.

And it's an important also just depending on your strategy, learning what works, what has been tried. But to Rainier's point, yeah, this one does check all the boxes.

So if anything topic that's a red flag there. And as Andrew mentioned, it's you could have the greatest listing or greatest business in the world but if you don't trust the other person on the other side of the table, it's just not going to work.

If you don't believe us, save this URL, check it in a month and see if it's on your offer because I will bet.

And that's for me that's, that's the biggest red flag is not having any goodwill with and creating a win win situation and having trust transaction.

Yeah. Again, that goes back to the quote money. It will be. All right, moving on to the next one. All right, we got two more and then we're going to move. You can't do a good deal deal with a bad person. So I really like that answer. All right, going back to the deck really quick and we'll just wrap this up. Thank you so much everybody for staying over. I know. Over to Q and A. We're probably going to go over an hour. I apologize. We've been trying to go through these quickly, but this is, this is fun. I hope you all are enjoying this. Okay, so Renee, are you ready to go to the UK United Kingdom?

Do it.

All right, so we got. I tried to keep this under an hour, but here's also just some, some Case studies of acquisitions that we've done, we've helped venture back businesses find soft landings. SaaS for building internal work apps and digital assistants that automate tasks. And we've helped other businesses that are extremely profitable sell for great multiples. So regardless of if your business is doing, you know, six figures, seven figures through productivity. So right now I'm going, I like all of this right now because that is a theme amongst many, many businesses in terms of terms of how do we become more capital efficient, how do we improve our productivity. That pretty much these two right here are pretty or even eight figures in revenue. We can definitely help you. And we work with a number of different buyers ranging from like Renee was mentioning, private equity to individual buyers and also strategic buyers. Pretty much the main things that everything every business is looking to to do. But from here what I want all of you to do is enter your criteria to to start getting deals delivered directly to your inbox. If you sign up as a buyer and you subscribe, you'll get Open offers doing 1,7 million in TTM revenue. Of that about 200,000 in profit. Also guided by our team, value based pricing activated to where whatever business that you're looking for, Whether it's a SaaS business, E Commerce business, mobile apps, whatever may be based on a certain multiple growth rate. Look at that. Okay, we're, we got 12 month contracts. I like that. Value based pricing starting at. So this is actually a. I'd consider this. Typically anytime there's age, once we have that business live on the marketplace, you want to be the first one to reach out to that owner and start the conversation to potentially acquire the business. There's a rule of thumb with outbound sales or you know, outbound strategies. There's a really good grass and so we have that functionality, functionality set up and so all you need to do is Sign up on acquire.com Enter your criteria, sign up for a premium or platinum subscription which gives you access to traffic. I shared on Twitter if you want to scroll down my Twitter but where you have elephants, deer, rabbit, mice, it basically says you know, path to $100 million SAS company. And you really want if you're going to have not just deal flow but the ability to, to transact on our platform and really start getting into entrepreneurship through acquisition. So I hope just before we go quick feedback. What did everybody think of this? This webinar just put in the chat. How do we do rate us out of like 10. All right, we got a 10 of an outbound strategy in terms of you know, it's where you're actually picking up the phone, having a sales process. You need the. The lifetime value of the customer to typically be above 20,000 for it to make financial sense. What I mean by that is customer acquisition costs and the lifetime value ratio usually want that to be 3 to 1. And when I see a number such as this, I mean, I'm just gonna assume that's 2,000amonth and times that by 12, that's 24,000. So it's 24,000. Yeah. Roger. Roger. Roger works here.

All right, awesome.

So we're going to be doing more of these. We're going to be probably doing these once a month in terms of just bringing up deals where I've never seen them. And I'm just going to give you my candid feedback. So definitely in a month as a based starting price, if I'm understanding that correctly and going over other numbers. When was this business started? 2017.

Yep.

I. All right, again, shameless. Plug go on acquire.com subscribe to be a buyer and really start getting into entrepreneurship through acquisition. Because you can buy product market fit. You don't have to chew glass for two years figuring out if this product is ever going to be successful. So thank you again, saving for repeating yourself, Rainier, because that's always a good call out. Because that is important for everybody that attended this webinar. It truly means the world to me.

So.

So everybody stay warm. I really. There's. There's six years of learnings in that, and there's a lot of value in that. And so when we look at the numbers. All right, Renee, I'll hand it over to you at this point.

Yeah. If we scroll down to the reason for selling, again, this is something that I like to look at versus looking at a listing. It's like, is it a want to sell situation? Need to sell. This one is great because the founders have realized, okay, we're. We've done great in startup mode, but now we know that another team could come in here with the proper sales, marketing, and growth experience to take it to the next level. And this exists.

Stay dry and we'll see you next time. All right, cheers, everybody.

Peace. Team has done very well in the seven years that they've had the business. And it's profitable SaaS. It hits a lot of the fundamentals that we look for. And in terms of the reason for sale, this is always great when this founder knows, hey, I might not be the right person to take it to the next level at this point. I'm open to seeing can take this to the next level and he would be a great fit. And then you start, start thinking about again, price is important, but transition the legacy, taking care of the team. There's a lot of things that is also important for this founder to make it a win win situation.

Yeah, again I agree with all that. So if, if you are all getting excited about, you know, accessing these deals, what you can do is go to acquire.com and then check out our, our pricing programs in terms of how to access these listings. So we have two different pricing programs where one allows you to access all startup startups under 250,000 TTM revenue. So essentially this is for, I'd say about you know, half the listings that we showed and then for larger listings for 780 a year, you get access again to our LOI builder, our asset purchase agreement builder. Free integration into escrow.com. we also have a number of ways to help get you priority deal flow. What I mean by that is anytime a listing comes on the market place that meets your specific criteria, you'll instantly be notified. So if any of these look interesting, upgrade to a premium or platinum buyer and you can get access. You sign the NDA and you can begin speaking with. So behind this, just to kind of clarify that a little bit more, if I request access, sign the NDA, the next thing that's going to happen is I'm going to know the business name. I'm going to be able to chat with the owner of the business. I'm going to be able to review the P L. Typically there's, if you see this right here, guided by expert. There's going to be a ton of different materials so you can really understand the business on a deeper level. So shameless plug there. All right, so last one and then we'll move to Q and A. All right, Renee, are you ready to go to Washington?

Let's go to Washington.

All right, so this is a suite of 17 popular web development plugins on Bubble IO with thousands of paid and free subscribers. Asking price about 700,000. Looking at about 6.6.5x profit. Multiple revenue has grown 48% year over year. Highly profitable. 97% margins. That was extremely high. Renier, what do you think of this one?

Again, you look at the multiple, it's still in range of what is selling on our marketplace. Again, 4 to 5x, sometimes 6, 6 and a half. Again with a profit margin like 97% it makes sense why they're asking on the upper range of the profit multiples. And again, look at the history. Started in October 2019, huge profit margin. And then it's again under that typical size that you'd be competing against private equity or other investment funds and groups. So this is where you have less competition in terms of the buyer pool, but still great fundamentals in terms of length of the history, multiple profit margin, and even the growth.

Yeah, I'm looking at the reason for selling too. And you buy this business, you can change these people's lives. That's why I love acquire.com so much. Shameless plug. Again, just looking to buy a home and maybe buy a house. House. Now, talking about this business, okay, this one has some upside. So the one thing that stood out to me where I said, whoa, you see if I can find it. Oh, here we go. They have 1200 paid users and they have 50,000 free users. So again, if it was me, I would see if I could just. You have a pool of like, just imagine if you were able to convert 5% of these over to paid, you would essentially have doubled the business just like that. Again, easier said than done. But I think by. I'd want to speak to the owner of the business and understand what made people upgrade and pay and then what ha. What are. What's going on with the free users and what sort of potential is there for me to convert these free users over to paid users? Because that is a huge opportunity. You're sitting on 50,000 total free users. Is there some sort of discount I can offer for them? Is there some sort of functionality that's missing? Have they ever. Is there any email nurturing campaigns set up? Is there any sort of marketing strategy to really encourage these people to upgrade to a paid plan? So I think that's. That's a huge opportunity. And then also reason for selling. We see this often where, you know, life, life is life hits and you know you have to sell because you want to pay off debt, you want to buy a home. Those are things that I hope all of you want to do at one point in your life and if you haven't already and then just again, understanding what is driving the growth and how can I accelerate it because again, this one reminds me of the QuickBooks integration where I could reach out to. Sorry, I'm moving too many tabs. I could reach out to other bubble customers and really understand what do they love about this product? What do they not like about this product? But it is the customer. ICP is so, so clearly defined. They have to be bubble IO users, and then you're sitting on a pool of thousands of people that haven't subscribed yet. And I think that's a huge growth opportunity. Ranier, any. Any last words on this one before we move to Q A?

Yeah. The other thing I'd like to add is, you know, we're obviously talking up about all of our listings, but you really want to know why they're selling, if there's any red flags. Again, not every listing is perfect, but with our founders, we coach them to be as transparent as possible. Is there a reason why there's 50,000 total free users? Anything.