Profitable ERP manufacturing B2B SaaS: $100K MRR - over 60% net

Seller Financing Available

6 month transition period, $50K+ LTV, beats NetSuite in key niches

*** IDEAL BUYERS ***
* A portfolio owner or software / SAAS / B2B company who wants to add a highly profitable software / tech business with enterprise and mid market clients.
* A B2B services firm with experience in building and growing a B2B sales team.
* A B2B services firm that is already providing complementary services [consulting or training on supply chain management, profit optimization, etc] and wishes to add a solution with high retention [on average, a client stays on for over 3 years].
* A CRM or ERP company that wishes to expand into a lucrative niche.


*** OVERVIEW ***
This is a great opportunity to acquire a highly profitable software / SAAS business that’s already successfully selling to mid market and enterprise clients and with high client retention. The software provides an end to end solution that the users depend on, and the average client has stayed on for over 5 years.

The business started off as an enterprise platform and has since moved to a SaaS model. The core functionality is charged per user and adds-on and extensions (such as EDI integration, API integration, etc.) result in transaction costs to the user. This latter point is important because as AI is more active, companies will need far fewer users.

The software has many unique capabilities and has won accounts from much bigger players including Oracle NetSuite in key niches.

Each of the 3 owners is working less than 5 hours a week.


*** WHY ARE THEY SELLING? ***
The 3 owners want to focus on other ventures.


*** OFFERS & PRICING ***
The SaaS version is $360 a month [with additional fees for transactions and EDI integration] and the enterprise edition is $5,000 per user license with a 20 user minimum, and there are additional fees added functionality: the enterprise edition has a 15% annual contract for upgrades (the 15% is based on the base fee plus all the extensions).

Almost 90% of the current P&L is with the SaaS edition and there are multiple clients paying over $10,000 a month for the software.


*** POST SALE SUPPORT ***
All 3 founders are willing to support for 6 months to help migrate the code and provide customer support.


*** TEAM ***
The 3 founders where one is doing customer support, one is providing training and one is fixing bugs.


*** COMPETITIVE ADVANTAGES ***
1. Users have reported being up and running in 2 to 3 months vs. 6 to 18 months with their competitors.
2. Users can do more accurate forecasting and inventory management, which dramatically improves the cash flow of the user’s business (this benefit and #1 above are 2 key reasons why this business wins accounts from much larger competitors such as Oracle NetSuite).
3. The system has built-in EDI [electronic data interchange] and an API to Shopify.


*** FINANCIALS***
2023 sales = $1.447M
2023 profit = $1.28M [adjusted]

2024 sales [till September 2024] = $982K
2024 profit = $869K [adjusted]

T12M sales = $1.394M
T12M profit = $1.249M [adjusted]


*** CLIENT ACQUISITION METHODS ***
1. Referrals currently
2. Partnership with third party logistics (3PLs) and CPA firms in the past

*** GROWTH OPPS
1. Reestablish relationships with CPAs and third party logistics companies to drive more referrals
2. Speak at industry conferences and industry podcasts
3. Integrate with Stripe Connect to drive more recurring revenue


*** IP INCLUDED ***
* Source code
* Personal intros to the mid market and enterprise accounts


*** WHY THIS BUSINESS? ***
Whereas most software businesses lose money and/or are valued at a multiple of current sales [or even future sales] , this business is proven to be highly profitable and valued at a multiple of profit.

In addition, whereas most software firms only sell to small businesses (SMBs) with high churn and low LTV (usually under $5,000), this business has mid market and enterprise where the client stays for years and the average LTV is over $50,000 and many with over $100,000.