Scalable Tech Start-up with Innovative Business Communication Solution

  • Price: £1,500,000
London, England
Seller Ref:NOVA
For Sale

Scalable Tech Start-up with Innovative Business Communication Solution

London, England
Seller Ref:NOVA
  • Price: £1,500,000

Overview

Seller Ref: NOVA

Description

They are willing to offer an investor shares in the business or to sell outright. If an outright sale is the preferred option, the current directors are willing to work for the new owners.

Highlights

• Profitable: High potential returns with profits over £5 million in five years.
• Subscriber Growth: Over 43,000 monthly subscribers expected in five years, increasing recurring revenue.
• Healthy Cash Flow: Solid financial status, with closing cash balance of £8 million by year five.
• Clear Investment Plan: Well-defined plan for the additional £750,000 investment.
• Established Technology: Ready-for-market technology saves time and cost of development.
• High Valuation Potential: £1.6 million annual profit by year three could lead to £10 million valuation.
• Ownership Flexibility: Options to buy entire business or majority stake.
• Scalability: Operating in tech industry allows for potential exponential growth.
• Synergy Potential: Investors in related fields could realise increased value.
• Experienced Management: Reduced risk with current management willing to stay on.

Target market challenges

SME10s face substantial hurdles which have become exacerbated by the rise in remote working.

Key areas where SME10s lag larger businesses are the ability to communicate over multiple channels (an expectation now among many clients), efficient internal and external collaboration and customer relationship management. Many owners and staff multi-task because of lack of human resources which leads to poor execution of basic tasks.

Many SME10 owners and employees lack IT proficiency. They struggle with existing software and lack the knowledge on how to get multiple apps to integrate. Spreadsheet-based record keeping impedes their ability to track opportunities, making sales and post-sale customer service a challenging task.

SME10-targeted app

Our client has developed an easy-to-use integrated communication and organisation tool. This product combines telephony, messaging, CRM, and more into one comprehensive, cloud-based platform optimised for use on all desktop and mobile devices.

The platform is also a VoIP phone system that can manage a range of landline numbers, includes business-grade email, enables video meetings with screen-sharing capabilities, provides shared and personal calendars and offers secure document storage.

Market potential

The market potential for our client’s solution is significant. According to data from the UK government, there are 5.5 million private sector businesses in the UK. Of these, 4.1 million are either sole-proprietorships or single-employee businesses.

Additionally, there are 1,187,045 businesses employing between 1 to 9 individuals. This represents a sizable market segment often overlooked by communication and business software developers, thus creating a significant opportunity for our client.

The current board of directors has significant experience in selling telecommunications and B2B apps into this marketplace.

The business also has the potential to go global as the same target market in other countries will face the same challenges as here in the UK.

Enquire

To find out more, please contact Swan Corporate…

Is this business relocatable:
Yes
Is this business home based:
Yes
Is accommodation included:
No
Is this In administrative/receivership:
No
Is stock included:
NA

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