Subscription Based Phone App Orange County, CA
Business Service Companies for Sale
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This unique, first to market, subscription model app is white label and provides customers significant flexibility with regards to branding, form, and functionality.
The product was developed via the owner’s participation in an incubator program at a SoCal University. The value proposition of the App is to provide customers an efficient way to communicate with and support their various stakeholders via handheld devices.
Proof of concept has been achieved and the company is currently scaling at a manageable growth rate with non-profits and public institutions across the United States. The business turned cash flow positive in 2021 (after add back of owner’s compensation). As of September 2022 month end, YTD cash flow was $23,500 and full year cash flow thru December 2022 is forecast at $47,000. Actual 2022 revenues through September were $74,000. The full year revenue forecast through December is $104,000.
Cash flow for 2023 is forecast at approximately $100,000 and is predicated on a moderate customer acquisition target of 72% growth over 2022; which equates to approximately two new customers per month. 2022 and 2023 cash flow figures are also after add back of owner’s compensation.
The seller is involved in primary customer acquisition and management of the Operations team comprised of App Design, App Development and Customer Care. All four members of the Operations Team work remotely. Three are based outside the United States and one is based in Arizona.
The company is structured and operated as a virtual business. As such there is no lease to assume, no FF&E or inventory that will be transferred.
Financial Information
- $250,000 Asking Price
- $38,000 Cash Flow
- $95,000 Gross Revenue
- Negotiable Down Payment
- Yes Financing
Business Location
- City: Confidential
- State: California
Financing Comments
- Seller financing on a case by case basis dependent upon Buyer financial profile, creditworthiness and skill set as it relates to the management of a subscription based software company.
Reason for Sale
- Seller is a serial entrepreneur with a passion for ideation. He is selling to transition to his next startup venture.
Detailed information
- Year Established: 2018
- Home Based: No
- Franchise: No
- Relocatable: Yes
- Lender Prequalified: No
- SBA Prequalified: No
- Part-Time Employees: N/A
- Contractors: 4
- Owner Worked Hours/w: 30
- Adjusted EBITDA: N/A
- Inventory Included: No
- Monthly Rent: N/A
- Real Estate Available: No
- Real Estate Included: No
- Real Estate Value: $0
- FF&E Included?: No
Training/Support
- Seller will provide 2 weeks of training at 40 hours per week after the close of escrow.
Facilities
- The company is structured and operated as a virtual business. As such there is no lease to assume, no FF&E or inventory that will be transferred.
Market Outlook/Competition
- This business/App is positioned well due to its unique value proposition that provides organizations the ability to better connect and engage with stakeholders and customers via an intuitive mobile device interface. The seller is not aware of any competition that offers an app with equivalent features and functionality.
Business Listed by
Ed Anderson
Sunbelt of Los Angeles/Whittier/FullertonContact Business Broker
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