Website Closers® presents a well-established Software as a Service (SaaS) Company that provides Custom Software Solutions for Profitable & Non-profit Organizations and Transportation Agencies. This is a high-retention, subscription-based business with strong fundamentals and consistent YOY revenue.
The software applications built by this team are a key part of daily operations for over 100 organizations, some of whom have been with them for 15, 20 and even 25 years. A lean and efficient operation, this business runs with a small team of 7, which includes 4 professional programmers/developers and 3 operations employees.
A standout feature of this business is its ability to thrive without spending a dime on advertising or maintaining a sales team. Every one of its 100+ clients has come through referrals and word-of-mouth alone. With a track record spanning over 25 years, the company has proven that marketing expenses are unnecessary—unless the next owner wants to scale rapidly and significantly expand the client base.
Additionally, and as exciting as the lack of marketing expenses, this business has limited reliance on its Owner, as he has actively been pulling back from the day-to-day activities. This provides an opportunity that is perfect for a buyer looking for an absentee and/or semi-absentee acquisition opportunity.
Unique Selling Proposition (USP)
Unlike other software solution companies, one of the biggest selling points this business has developed over the years are its 3 core services: Case Management, Transport Management, and App Licensing. Their revenue model is built on long-term contracts, with 90% of clients billed annually and the average annual contract size ranging from $10,000 to $50,000, most of which are on 3-year contracts.
With a 76% profit margin and steady recurring revenue, this business is set up for financial stability. Their software is deeply integrated into their clients’ daily operations, making it difficult to replace. Their systems help nonprofits manage compliance and reporting while allowing transit agencies to schedule and dispatch rides efficiently. Clients rely on these tools to keep their businesses running smoothly, leading to an extremely low churn rate.
Best Ways to Scale
Their marketing potential remains untapped, seeing that the business has grown through word-of-mouth and referrals without any allocation for marketing or social presence. A buyer could introduce trade show sponsorships, email marketing, and online advertising to expand their client base. Their software has never been white labeled, leaving another opportunity for growth. A dedicated sales effort could tap into government contracts and large enterprise deals, significantly increasing revenue. There is no marketing or sales team, social media presence, or formal outreach strategy, yet the business continues to achieve consistent YOY success.
Business Broker’s Takeaway
We are excited about this business for three important reasons:
1. Stable Recurring Revenue with High Customer Retention. This business has been bringing in consistent revenue for over 25 years, with 90% of their earnings generated from long-term subscription contracts. The average contract size exceeds $25,000, and most clients have been with the company for 15+ years. Churn is extremely low, and the nature of the software makes switching to a competitor cumbersome.
A buyer looking into this business can reduce the risk profile overall given the historical, predictable cash flow and low churn.
2. Essential Software with No Direct Sales Effort. Unlike many SaaS companies that rely on aggressive marketing, this business has grown entirely through word-of-mouth and referrals. Their software is deeply integrated into nonprofit and transportation agencies, providing solutions these organizations depend on. A buyer could introduce a simple sales and marketing strategy to unlock untapped growth potential.
3. Multiple Growth Opportunities Without Major Investment. Despite their strong financials, this company has never had an actual marketing team or sales process. The right buyer could expand by hiring a sales rep, investing in trade shows, or launching an outreach campaign. There’s also potential to white label the software or expand into adjacent markets. Growth doesn’t require a major overhaul, just a few strategic moves could take revenue even higher.
For a buyer looking for a SaaS business with built-in recurring revenue, low churn, a long-standing customer base, high margins, and multiple growth paths, this is a business you could invest in.
