This Is Bizness: The Twelfth One

Welcome to This Is Bizness: The Twelfth One

Welcome to another edition of This Is Bizness, your weekly newsletter that explores the world of buying and selling small businesses outside traditional channels. Sorry for the late edition again 🙃. Gonna give you guys an exciting update on Pocket Fund next week.

The business I have for you today is a SaaS in the sports tech space with $750k revenue in the last year that has closed business with all 32 NFL teams.
They specialize in selling custom digital autograph software to professional sports teams and brands.

The business we look at today is different from the ones we usually do. It is unique and niche like the others but much larger in terms of revenue and size.

Without further ado, let's dive right in 🤿 

Bizness Breakdown: Custom Digital Autograph Software

Asking Price: $500,000 (3.3x profit, 0.6x revenue)

They specialize in selling custom digital autograph software to professional sports teams and brands.

The business we look at today is different from the ones we usually do.

It is unique and niche like the others but much larger in terms of revenue and size.

Founded in February 2015, they have generated:

- $750,750 in trailing twelve months (TTM) revenue

- $150,000 in TTM profit

They have also closed business with all 32 NFL teams, the NFL League Office, 12 NBA teams, and notable brands such as Gatorade, Barclays, and ATT.

With over 250,000 autographs sent since 2015, they have established themselves as a prominent player in the market.

Business Model: Software-as-a-service (SaaS) model

Pricing:

They offer different pricing tiers, including $100,000+ for custom API integration, $25,000 for a custom white label site plus $2,500 per event, and $5,000 per event for non-custom white label usage.

Tech Stack: The product is built on a robust tech stack including Microsoft Azure, SQL, Microsoft Azure Storage, and .NET.

Competitors: The company faces competition from other players in the market such as Autographio, Cameo, Candy, Topps Digital, and FanJolt.

Growth Opportunity:

Despite being in the industry for over five years, the company believes that there is still significant growth potential.

The digital collectible space is booming, and they see an opportunity to exit the company for $50 million within the next 18 months by hitting their growth goals.

Some strategies they plan to implement include hiring a B2B sales team, adding new product features, and expanding into new markets.

Besides the market growing in general, I see this company capturing more market share as very unlikely here since they seem to be working with many of the players in the space already.

It would require considerable additional investment or leverage using connections or skills to gain further market share.

Ratings:

Growth & Scalability: 3/5

(The industry is growing, and the company has potential for expansion)

Risk: 2/5

(Competition in the market, but the company has established a strong brand and client base)

Price to Value: 4/5

(Reasonable asking price considering revenue and client base)

Innovation & Tech: 3.5/5

(Solid tech stack, but facing competition in the market)

Overall: 8/10

This business demonstrates great potential and has already achieved significant success in the digital autograph space. With profitable revenue and an impressive client list, the company offers a unique value proposition and has room for growth.

However, there are risks associated with competition and the constantly evolving nature of the technology in the digital collectibles market.

Bizness Pros:

- Established profitable SaaS business

- Impressive client list including major sports teams and brands

- Strong potential for growth and expansion with the booming digital collectibles market

Bizness Cons:

- Competition in the market from other players

- Evolving nature of the digital collectibles industry may prove difficult

- Current operator has inside knowledge and experience that is crucial to operations and strategy

Analysis:

Acquiring this business offers a unique opportunity to enter the digital autograph market with an established and profitable SaaS startup.

The company's success in closing business with top sports teams and brands validates its product and brand.

While there are risks and competition in the market, the potential for growth and the opportunity to capitalize on the booming digital collectibles industry make this a promising investment.

However, thorough due diligence and a solid growth strategy with the right team and operator in place will be essential to maximize the value of the acquisition.

Check out the listing here: https://app.acquire.com/startup/NfvM7myygfXqjWEd0VA6Ap7nslI3/96HLCSsSdB9ZF2rf268L?source=marketplace

Thanks for making it all the way to the end :)

I would love to get your feedback on us looking at a larger business. Do you prefer the smaller businesses or are you cool with me doing whatever I wanna?

If you have any feedback, suggestions, or specific businesses you'd like us to analyze in the future, please don't hesitate to reach out. Your input is essential in shaping the content of This Is Bizness.

Thank you so so much for taking time out of your busy day to read This Is Bizness. I appreciate and love every single one of you 😊 

Alrighty see you guys next week 🖖 

Dev

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