eCommerce SaaS Platform, Low Churn
This is a mature software company that provides eCommerce software to medium-sized merchants to effectively sell their products online. The software is built using standard technologies and is licensed based on a SaaS model with a monthly recurring subscription.
The company also offers turnkey marketing services for some of its SaaS subscribers. Not only does the marketing service provide ongoing revenue, but it also ensures the customers are successful in generating online transactions through the eCommerce storefronts. The mature and highly functional software application plus the digital marketing services have combined to create a consistently profitable software company with a very stable (low churn) base of subscribers.
The company currently supports over 200 merchants and has been in business for more than a decade. Due to its long-term commitment to customer success, the firm has achieved a strong reputation within its sector. This reputation is evidenced by a reliable flow of inbound leads. The firm is currently spending very little on outbound sales and marketing activities.
The market for eCommerce software is over $7 billion and is expected to grow at over 16% per year through 2027. This firm has successfully positioned itself as a middle-market provider, which is a defensible portion of this quickly growing market. The company targets online retailers who have at least $3m in annual online sales.
It has been run as a lifestyle business with minimal investment in sales and marketing. Virtually all new customers come inbound via referral.
Highlights of this business include:
- Subscription-based software company with recurring revenue
- Very low customer churn
- Favorable CAC to LTV ratio
- Strong culture with loyal and dedicated employees
This is an opportunity to acquire a profitable software business from committed sellers.