Inside a High-Margin Payment Processing Business | Acquisitions Anonymous Episode 350This week, Mills and Michael take a deep dive into a payment processing business that’s both wildly profitable and incredibly niche. With $2.1 million in revenue, 81% EBITDA margins, and a foothold in state agency payment systems, this is the kind of deal that grabs your attention. But is it all it’s cracked up to be?Here’s what we cover:- How it works: The nuts and bolts of processing payments for government agencies.- The challenges: Long sales cycles, RFP-driven contracts, and slow adoption by municipalities.- What makes it tick: Is their niche defensible, or just a fluke?- Valuation speculation: Could this business fetch 10x EBITDA or more?- Risks and rewards: Customer concentration, market saturation, and the ever-looming competition.If you’re a strategic acquirer or someone in private equity, this one’s worth paying attention to. First-time buyers? Maybe not so much.Why This Episode Stands Out:1. High-Profit Margins: Seriously, 81%.2. Niche Market: Payment solutions for state agencies—could be genius or a total headache.3. Growth Potential: Doubling revenue year-over-year is impressive, but is it sustainable?4. Also, don’t miss Mills and Michael sharing some of the best banter we’ve had in a while—this one’s as entertaining as it is insightful.
Subscribe to weekly our Newsletter)** and get curated deals in your inbox**Advertise with us by clicking here)
- Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel).
- Do you enjoy our content? Rate our show)!
- Follow us on Twitter @acquanon) Learnings about small business acquisitions and operations.
For inquiries or suggestions, email us at [email protected]
