Oracle acquires FarApp

CLIENT CASE STUDY

SaaS Case Study

SaaS case study - read about the successful exit for this technology company that built an impressive recurring revenue.

Transaction Details


Enterprise ERP to eCommerce Connectivity Platform

This technology company has built an impressive recurring revenue business model providing connectivity to enterprise ERP applications.  The focus of the firm is using a SaaS-based product to connect ERP backends to eCommerce front ends primarily for the retail and restaurant vertical.

This is a highly scalable platform currently supporting over $5billion worth of annual transaction volumes for its base of over 500 active subscribers.

Highlights of this business include:

  • Growing and profitable
  • Extremely low customer churn
  • Low customer revenue concentration
  • Strong reputation and partnerships with key industry players

CLIENT

SaaS Case Study

STATUS

Sold

2019 REVENUE

$2.95m

CASH FLOW

$1.2m

 2017201820192020 (Jan – Sep)
Revenue$1,227,622$2,062,807$2,983,012$2,549,351
Net Income$38,349$442,421$594,368 
SDE$177,052$859,875$1,200,631 

Reason for Sale

Majority shareholder wants to retire.

Current Employees

25 full time employees located in California.  2 owners working full time.

Covid-19 Impact

This business continues to run and bring on additional new customers during Covid-19.  Management believes any growth in eCommerce will benefit this business long term. In the short term, Covid-19 has caused some timing issues and minor additional expenses. These timing issues include marketing and legal expenses prepaid, for which the execution has been delayed.

Valuation, Due Diligence and Deal Structure

All serious offers from qualified buyers will be considered. A full CIM is available under NDA to qualified buyers. Financial statements, tax returns and supporting documentation will also be provided at the appropriate time. Seller is committed to a successful transition of ownership.

Representation Agreement

This company has contracted exclusively with David Jacobs of Link Business Silicon Valley. David cooperates with buy side brokers.