We analyze a $1.6M customer loyalty SaaS business for sale, uncovering a major revenue concentration risk and industry challenges—would you buy it?Business Listing - 📢 Sponsors:Capital Pad – The marketplace for acquisition entrepreneurs. Whether you need capital to buy a business or want to invest in small business acquisitions, Capital Pad makes it easy. Check them out at capitalpad.com.Hire With Near – Struggling to find top-tier talent? Hire high-quality Latin American candidates with HireWithNear and get a 5% discount on your first hire. Visit hirewithnear.com/aapod to learn more.🌐 Stay Connected with Acquisitions Anonymous:📢 Website: https://www.acquanon.com/🐦 Twitter: https://twitter.com/acquanon📩 Subscribe to our Newsletter for more deals like this: https://www.acquanon.com/newsletter🔔 Subscribe to Acquisitions Anonymous on YouTube: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1🎧 Listen on your favorite podcast platforms: https://www.acquanon.com/episodesIn this episode, we analyze a customer loyalty SaaS business listed for $1.6M with $275K in cash flow. It seems promising until we dig into the details—revealing a massive customer concentration risk and major headwinds in the industry. Is this business really worth its price tag, or is it a ticking time bomb? Tune in to hear our take!Key Highlights:- Business Breakdown: A 16-year-old SaaS company offering text-based loyalty programs.- Recurring Revenue: $372K in annual recurring revenue with an anchor client under contract through 2031.- Massive Red Flag: 35% of revenue comes from a single restaurant chain.- Industry Shift: Major POS systems (Square, Toast, Clover) now offer built-in loyalty programs, making third-party solutions obsolete.- Valuation Concerns: Priced at 6x cash flow, but how sustainable is this business in a rapidly evolving market?Long-Term Viability: Would you risk buying a business that could become irrelevant in just a few years?
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