Acquisitions Anonymous - #1 for business buying, selling and operating French social media software for hijinx - Acquisitions Anonymous 277
Mar 5, 2024
Analyzing the acquisition of a French SaaS startup offering social media software, evaluating financials and growth potential. Discussing challenges such as competition, language barriers, and technical considerations. Emphasizing the importance of due diligence and growth opportunities in new markets. Exploring the intersection of personal experiences, business strategy, and revenue growth in the acquisition process
AI Snips
Chapters
Transcript
Episode notes
French Market Focus and Location
- The SaaS targets French-speaking agencies mostly in France but is incorporated in Estonia, easing some cultural and legal challenges of doing business in France.
- Serving the French market with localized language and culture is a key moat against large competitors like Buffer and Hootsuite.
Growth Justifies Price Multiples
- The business demonstrates strong growth with 45% revenue increase year-over-year and 110% profit growth.
- Sustaining this growth level is critical to justifying the $1.2 million asking price and 3.7x profit multiple.
Agency Focus Creates Switching Costs
- The app likely has deep workflow integration tailored to French digital agencies managing multiple clients.
- This specialization creates higher switching costs and long-term client retention compared to generic social media tools.