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Acquisitions Anonymous - #1 for business buying, selling and operating

Would You Buy This $1.6M Customer Loyalty SaaS Business?

24 Feb 2025

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We analyze a $1.6M customer loyalty SaaS business for sale, uncovering a major revenue concentration risk and industry challenges—would you buy it?Business Listing - 📢 Sponsors:Capital Pad – The marketplace for acquisition entrepreneurs. Whether you need capital to buy a business or want to invest in small business acquisitions, Capital Pad makes it easy. Check them out at capitalpad.com.Hire With Near – Struggling to find top-tier talent? Hire high-quality Latin American candidates with HireWithNear and get a 5% discount on your first hire. Visit hirewithnear.com/aapod to learn more.🌐 Stay Connected with Acquisitions Anonymous:📢 Website: https://www.acquanon.com/🐦 Twitter: https://twitter.com/acquanon📩 Subscribe to our Newsletter for more deals like this: https://www.acquanon.com/newsletter🔔 Subscribe to Acquisitions Anonymous on YouTube: https://www.youtube.com/@AcquisitionsAnonymousPodcast?sub_confirmation=1🎧 Listen on your favorite podcast platforms: https://www.acquanon.com/episodesIn this episode, we analyze a customer loyalty SaaS business listed for $1.6M with $275K in cash flow. It seems promising until we dig into the details—revealing a massive customer concentration risk and major headwinds in the industry. Is this business really worth its price tag, or is it a ticking time bomb? Tune in to hear our take!Key Highlights:- Business Breakdown: A 16-year-old SaaS company offering text-based loyalty programs.- Recurring Revenue: $372K in annual recurring revenue with an anchor client under contract through 2031.- Massive Red Flag: 35% of revenue comes from a single restaurant chain.- Industry Shift: Major POS systems (Square, Toast, Clover) now offer built-in loyalty programs, making third-party solutions obsolete.- Valuation Concerns: Priced at 6x cash flow, but how sustainable is this business in a rapidly evolving market?Long-Term Viability: Would you risk buying a business that could become irrelevant in just a few years?Subscribe to weekly our Newsletter and get curated deals in your inboxAdvertise 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]

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