Website Closers® presents a polished B2B SaaS Business that rapidly built its brand off an excellent, well-tuned software platform. They offer software-as-a-service targeted towards small to medium sized businesses that effectively automates the Accounts Receivable Process, which not only saves money that would otherwise be spent on hiring accountants, but makes the entire process of cash flow management much smoother. Their 6 service offerings are divided between plans for financial consultants and Direct to SMB, with both groups having 3 different price points to choose from. The company has an average contact size of $96 on a $2,000 LTV, earning them 80% gross margins in the past few years, with many of its clients staying on long-term.
The brand tackles Accounts Receivable and Collections matters with a highly optimized system that operates within the popular cloud accounting platforms of QuickBooks, Xero, and Clio. Their services offer a variety of uses, from sending invoices and collecting payments, to performing milestone billing and reconciling payments. These services can reduce the time a business owner spends managing their accounts by over 80%, to the point where, if it typically took them 30 days to collect payments, the products would be able to whittle that time period down to a week.
They offer small, medium, and large plans for their B2B Clients, with each being tailored to suit the different needs of each client. Their small plan has been the most profitable, bringing in 46% of total revenue, and their medium plan follows behind at 35%. Unsurprisingly, these services are highly desirable for companies struggling to manage their accounting and receivables. They have attracted leading names in the SMB Space, including legal firms, software companies, and marketing agencies. The company’s typical customer has sales revenue between $1.5M and $2.5M, making them valuable demographics to target.
These clients also tend to stay with the brand for a substantial period, with the average customer staying for about two years. Given that the company operates off a monthly subscription service, this allows them to generate a steady stream of income from each customer, with the average lifetime value of their clients sitting comfortably at $2,000.
The company has an email database of nearly 13,000 subscribers, and over 7,000 monthly visits to their website on average. Their popularity doesn’t stop there, however. The high rate of satisfaction among customers has led to fantastic word-of-mouth advertising, with many new accounts coming in from referrals. Because the company doesn’t rely on third-party infrastructure and controls their own software, they are able to have complete control over their relationship with their clients. This lets them better strengthen their ties with their larger clients and maintain a solid reputation that they’ve carefully developed over the years.
They supplement the natural advertising they get from their customers with a largely organic marketing campaign, focusing on SEO practices instead of PPC. They run a popular blog to appeal to their key demographic and have recently revamped their website to appear more frequently in search results. This approach has been very effective, as along with their impressive monthly visit rate, they also rank well for over 1,340 keywords.
The Accounts Receivable and Automation Market is incredibly lucrative, as a rising number of businesses have begun to realize the benefits of automating certain responsibilities, like the over 1,000 annual invoices that the company’s average customer must send. The industry is expected to grow by 12.9% in the next few years, and while the company’s strong reputation and dedicated client base will let them grow alongside the trend, it can be improved further to send profits skyrocketing.
They could bolster their organic traffic by cultivating their social media presence, and partnering with industry experts for a new influencer campaign. They could also take advantage of their large email database for email marketing, which could encourage clients to stay with the brand, and keep them updated on any important news that the company wishes to share. Another option would be to increase their PPC advertisements on Google and utilize video marketing on YouTube, to expand the reach of their marketing and showcase their services to a far larger group of people.
The company would also benefit from integrating additional software and accounting platforms, which they have already been considering. Higher end platforms such as Sage, Oracle, and NetSuite are especially promising, as they are geared towards larger companies who have larger collection needs on average. Integrating these platforms would let the brand raise their price points to match the scope of those companies and let them establish a name for themselves among these prominent groups.
Their products could be improved by customizing them to suit other businesses, or adjusting them to appeal to specific niches, including insurance carriers, franchise groups, and development agencies. Integrating with CRMs, or customer relationship management, and starting to accept crypto currency, would also be viable options for growth as well.
The company has three full-time employees, consisting of a managing director, senior software engineer, and customer service representative. Each of the brand’s three operating partners have different tasks and responsibilities, with the managing director overseeing day-to-day operations, managing customer service issues, and directing the engineering team’s priorities, among several other tasks. They spend about 25 to 30 hours per week on the business, though this workload, along with the workload of the other operating partners, could be easily whittled down by hiring on more employees to handle some of their responsibilities.
This deal is suited to a buyer who understands the ins-and-outs of what a SaaS platform can do, and how to appeal to new clients and industries. It has partnered with several name brands such as PayPal and Stripe, and has a strong following and reputation among financial consultants and a wide number of small and midsize businesses. If you’re interested in this marvelous acquisition, then contact Website Closers today to hear more details.
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