Professional Web Design and Development Firm with Over 25 Years in Business and 55% Annual Recurring Revenue
A 26-year-old agency providing best practices in web design and branding in a variety of Professional Service Industries. The company has a low churn rate of only 1.5% in 2021 and 55% of their total annual revenue is recurring.
OPERATIONS
The company offers 9 hosting, creative design, and consulting services, including digital marketing support, web development, brand and product strategy, and UX/UI design. They have 130 clients, with most having been with them for over a decade, and their contracts can be a one-time service, ongoing service, or a combination for the client’s preferences.
The company has a team of five full-time employees covering a range of roles from senior architect and tech lead to an account manager. They also have an overflow team consisting of strategists, designers, writers, developers, animators, and video/audio specialists brought in during busy seasons. Their resources are affordable and have helped make the company successful.
MARKETING AND KEY METRICS
The company’s value proposition includes their SaaS Marketing Tool, which serves as a middle ground between more expensive, custom-built website development, and cheaper, but ultimately generic, options on the market. They have seen a lot of success in selling to smaller businesses in recent years.
A high number of referrals were the best channel for attracting new customers. The company receives great word-of-mouth advertising through their colleagues and clients, posting examples of their completed web designs and linking their clients’ pages. The brand could more fully develop its client base by creating a digital marketing strategy.
The company sees over 2,000 unique monthly visitors to their website thanks to their consistent organic traffic strategy. Their suite of services brings 20% of their total revenue in custom website development and a healthy 40% in recurring SaaS-based website work, with 72% of that being recurring.
The company serves mainly small and mid-size Professional Service Providers, such as law firms, tourism and hospitality, non-profit, and general corporate industries. They have a customer base of 130 clients, with most having been with them for over a decade.
BUSINESS MODEL & RESOURCES NEEDED
The company’s team is made up of a senior architect and tech lead, a designer, a director of design and development, and an account manager. The current owner has also put together an overflow team consisting of experts brought in during busy seasons.
THE INDUSTRY
Professional website design services have become especially valuable in recent years, with high-quality websites not only generating leads but also boosting a business’ branding and image. This company serves smaller businesses and operates within North America for web design, development, and hosting services. They have an impeccable reputation, and their prominent clients have been loyal for years.
OPPORTUNITIES TO SCALE
The company’s SaaS-based website work generates the most revenue, with 72% of that being recurring. As they have years of experience in the field of marketing, they could easily and effectively use their skills to take their brand to new heights. They have developed a tool that serves a middle ground between expensive, custom-built website development and cheaper, but ultimately generic, options on the market.
Asking Price: $775,000
Gross Income: $920,616
Cash Flow: $200,223
Year Established: 1996
Employees: 6
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
