“Zero-time” email tool asking $1.9M
An email tool doing $917k in trailing revenue but only $30k last month, for sale at $1.9M.
Good afternoon, everyone.
No one chooses not to spend time on something with a clear upside. So, to most sellers' surprise, when a deal requires “no time” to maintain, I don't usually see that as an opportunity.
Today’s deal is an email marketing tool built for SaaS companies: behavior-based emails, automated workflows, segmentation, and lifecycle messaging. Founded in June 2020, bootstrapped, and run by salaried operators while the owners build their next thing.
Asking $1.9M, advertised at 2.7x profit, 2.1x revenue
TTM revenue $917.1k, TTM profit $696.1k
Last month: $29.9k revenue, $9.9k profit
ARR $376k, churn 3-5% “stable”
~150 paying customers, operators cost $7.8k/mo
React, Node, Postgres on AWS Lambda
In the seller’s defense, they’ve shown another tool they launched recently that went from $9k to $43k in MRR in under two months, which is why they’ve shifted their focus and are looking to sell this one.
First time here? We analyze the deal flow and market trends we come across for independent buyers, search fund operators, and anyone seriously considering buying or selling a company.
In short
$917k TTM revenue, $376k ARR, $29.9k last month. The current month and the ARR match. But roughly $541k of the trailing year is gone.
The advertised 2.7x profit is priced off the old numbers. Against the run rate, $1.9M is 16x profit, and still 9x with operator salaries added back.
Competitors are Customer.io, Loops, and Resend, not Mailchimp or Klaviyo. Customer.io retains 111% of existing revenue. This loses a third.
The email provider matters. On SES, costs are lower, and the customer base is likely clean.
I’d pass at $1.9M. At 2.5-3x run-rate SDE, this is a $300-400k deal, seller-financed or earnout-backed, for a buyer already in the space.
