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Jan 13, 2020 — Business Opportunity
As a well-established SaaS business with state-of-the-art IP in the massive agriculture and AgTech industries along with its exploding growth, demonstrated profitability, growing recurring revenues, and nearly 100% retention rate, the business valuation is based on a multiple of its annualized recurring revenues. The owners will consider a sale of the business or purchase of a controlling interest by an investment partner based on the business valuation of $5.5M.
AgTech has a huge market potential and unseen, rapid growth for high scalability and significant ROI. With existing infrastructure and solid team in place, this SaaS business is an ideal acquisition target for a buyer with the capital background to further scale the business into a dominate player in the food production supply chain niche.
According to Finistere Ventures, Agriculture supplied $1.053 trillion to the US gross domestic product in 2017, making it the 16th largest economy. Finistere Ventures reports that $1.6 billion was invested in AgTech globally in 2018. The last 10 years have seen remarkable growth in AgTech investment, with $6.7 billion invested in the last 5 years. With the increasing demand for food worldwide due to the growing population, Agriculture demand is expected to rise by 70% and the need for innovation in agriculture has never been greater. In the face of worldwide growing demand for food products, entrepreneurs, technologists, and investors have realized that Information Age solutions can profitably be applied to Bronze Age problems. Agtech will be as important to the continued growth in the production and delivery of healthy and safe food products in this decade as tractors were in the 1920’s.
This business is an Industry Leading Service to manage “field to fork” produce production including a complete management, tracking and accounting system. Representing many of the growers for large companies such as Walmart, Kroger, Sam’s Club, Frito-Lay, Green Giant, this company offers a sophisticated and advanced SaaS system that manages the entire produce supply chain process from field & plot to distribution to delivery at retailers. Its IP was built using the latest and most innovative technology architectures for SaaS, including industry leading advanced security measures utilizing Blockchain Technology. This advanced technology platform leads other service offerings in the market and is built from the ground up to support both the needs of the growers and the strict food safety and data security requirements of their Fortune 500 clients.
Since its inception, the company has been on an exponential growth trend with no signs of slowing down any time soon. Recurring revenues have been growing at an average rate of 10% per month. Based on the number of recurring customers each month at its average monthly contract rate, recurring revenues has been averaging about $96k/mo. for 2019. Annualized for the year, recurring revenues totals over $1.1M. The company currently has around $2.7M in signed multi-year contracts. While scaling, it has proven profitability with net income up triple digits for Jan-Oct 2019 over the same period in 2018!