Acquisitions Anonymous - #1 for business buying, selling and operating Payment Processing Business | The $15M Business Hidden in Plain Sight
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Nov 26, 2024 Discover the intriguing world of high-margin payment processing targeted at state agencies, boasting an 81% EBITDA margin. Delve into the challenges of long sales cycles and the complexities of government contracts. Explore unique opportunities in mobile app payment solutions and the slow adoption of technology in municipalities. The hosts engage in lively banter while assessing potential risks, growth, and competition in this hidden gem of a business. Plus, insights into the benefits of credit card use for property taxes add another layer of intrigue!
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Niche Payment Processing Business
- This payment processing business targets state agencies and boasts an 81% EBITDA margin.
- The hosts discuss the challenges of selling to government entities, including long sales cycles and RFP-driven contracts.
Business Model Explained
- The business model involves charging a service fee to users paying state agency fees online.
- The company collects the total amount, remits most to the agency, and keeps the service fee.
Slow Growth Despite High Margins
- Despite doubling revenue annually, the business remains relatively small at $2.1 million.
- Slow sales cycles and RFP-driven government contracts contribute to the limited size.
