Retail SaaS Platform - Enterprise Automation Software

Full Editorial Writeup

We are honored to solicit interest in this 22-year-old absentee owned and operated, consistently highly profitable SaaS (software as a service) Company. They are a niche enterprise software / technology firm and is in the business of providing a portfolio of software products to specific industry verticals such as retail, logistics and telecom services and they are the SaaS platform for a $100B+ US retailer. Its core competencies include a unique understanding of these verticals, their business workflows and their automation. This turn-key business generates high profits and runs on automatic which allows its owner to spend only minimal amount of time overseeing its operations, due it its India-based support organization consisting of a software development, engagement management, featuring complete life cycle product support.As is typical of smaller companies who differentiate themselves through years of innovation and outstanding service and support, its largest customers, are big retail stores, having over 1,000+ US-based locations, which have consistently rewarded this company with additional business over the years and they are now responsible for approximately 70% of the company's annual revenues. The company’s platform is instrumental in driving $1B in incremental revenues annually for its retail customers. These and other customers have committed to an enhancement of the platform to include other capabilities. In addition, there are products and projects in the pipeline that leverages next generation AI (artificial intelligence) technologies which would fetch up to $4M in additional revenue for the company with initially 25% and eventually 50% or more in incremental annual recurring revenues. Fortunately, their relationship with their customers has lasted more than a decade and continues to grow stronger and prosper.Their platforms are offered as services on the cloud and serve a range of business functions to handle enterprise planning, execution and monitoring. This company has returned 50%+ of its revenues as cash flow over the past two years and has consistently generated over high Seller Discretionary Earnings (SDE) on revenues and features over 70% in recurring SaaS revenues across its long standing and loyal customer base.No list price is provided as this company will be sold to the highest bidder as market value multiples for SaaS companies can vary widely based on a particular buyer and it’s particular fit for that buyer's specific purposes. Potential buyers, seeking additional details, should have liquid funds in the amount of at least $500,000.The seller is convinced that there is significant growth potential for the business and he favors a recapitalization (recap) scenario given a unique inflexion point between the industry and the state of tech adoption within the industry. Given this vector, the seller is willing to stay onboard, indefinitely, after closing, as an employee to help unlock this potential value of the company in concert with the buyer in a recap acquisition model where the seller would offer to sell a controlling interest in the company consisting of 50-60% of the company's stock, in return for a $4M-5M valuation which would be accompanied by an earn out structure, to be negotiated, that would be paid out to seller based on certain performance metrics to be achieved such as a doubling of the company's revenues and cash flow within two years after closing. The company’s recent introduction of two new products are expected to increase its revenues by at least $500,000, annually, which could also be subject to additional earnout performance provisions, post-closing. The seller would also be agreeable to selling 100% of the company upon an acceptable mutually negotiated multiple of revenues sales price.