Executive Summary

Business Name: Confidential
Business Start Date: 2017
Location: Melbourne, Australia
Industry: Public Stock News + Analysis for Investors
Business Valuation: $4.1M AUD (7.75x of TTM Profit + 5x Sales)
Business Model: Display Advertising, Paid Content, Affiliate Model
Sales (TTM): $822,265 AUD
Net Profit (TTM): $526,465 AUD (Total of the 3 years of profit equals almost $4M AUD)
Social Media Size: 150,000 followers (60,000 on newsletter)
Website Traffic (TTM): 840,000+ users, 6,800,000+ pageviews

_________________________________

Overview:
This company is a leading financial media company specializing in promoting publicly listed companies to investors. Established in 2017, the business has carved out a significant niche in the small cap stock market sector. With a solid user base and a proven revenue model, this company represents a unique opportunity for a buyer looking to acquire a profitable, growing business in the financial news industry.

The Opportunity

This company began its journey in 2017 and has grown to dominate major domains within the English-speaking stock market world. The company has achieved significant milestones, including generating over $2M in revenue at its peak, and has expanded its digital presence globally with websites and side businesses.

With a strong social media following of over 150,000 and a newsletter subscriber base exceeding 60,000, the business is well-positioned for continued growth. The financial media industry is experiencing a growing trend of individual investors seeking to take control of their financial future, presenting a significant growth opportunity for this company.

General Highlights

• Age of Business: 7 years

• Revenue Model: Display advertising and affiliate commissions

• Key Financials:

  • Sales (TTM): $822,265 AUD

  • Net Profit (TTM): $526,465 AUD

• Traffic: Over 890,000 users and 6.8 million pageviews annually

• Monetization: Revenue generated primarily from advertising and affiliate partnerships

Niche and Market Position

Industry: Financial News
Niche: Investing Advice About Publicly Traded Stocks
Role in Industry: Provider of news and information to investors
Market Trends: The niche is expanding as more individuals enter the stock market, looking to make informed investment decisions. The trend towards financial independence is driving increased interest in small cap stocks.

Customer Base

Primary Customers: Investors
Acquisition: The business attracts customers primarily through publicly listed companies, direct investor relations companies, and brokers.
Customer Acquisition Cost: Nil
Average Revenue per User: $15,000 per year

Traffic Analysis

• User Statistics: Over 890,000 users annually

• Pageviews: 6,800,000+ annually

• Social Media Followers: 150,000+

• Newsletter Subscribers: 60,000+

Revenue Sources

• Main Revenue Model: Paid Content Placements + Display Advertising + Affiliate Commissions

• Average Revenue per Customer: $15,000 per year

Financial Performance

Sales (USD):

• 2018: 405,625 AUD

• 2019: 229,231 AUD

• 2020: 533,060 AUD

• 2021: 1,761,357 AUD

• 2022: 2,214,460 AUD

• 2023: 1,702,345.33 AUD

• 2024: 822,265 AUD

Profit/SDE (USD):

• 2018: (7,575) AUD

• 2019: 7,414 AUD

• 2020: 197,150 AUD

• 2021: 1,043,748 AUD

• 2022: 1,980,760 AUD (ESTIMATED)

• 2023: 1,468,645 AUD (ESTIMATED)

• 2024: 526,465 AUD

Operations

Team Structure:

• Staff: 3 journalists, 1 editor, 2 interviewers (All contractors)

• Technology: Business operates primarily through its websites

• Expenses:

  • Servers: $6.5k per year

  • Data Costs: $14k per year

  • Content Generation: AI-based system costing $65k per year (can cut operational costs by 50%)

Sales and Marketing

Marketing Channels:

• Primary Channels: Email, social media, affiliates

• Cost to Acquire Customers: Minimal due to strong organic growth

• Advertising Spend: Data not provided

Valuation and Offering Structure

Business Valuation: $4.1M AUD
EBITDA Multiple: 7.75x Profit

Reason for Sale

The owner has achieved their financial goals and is seeking to retire. The business has been successfully grown from the ground up and is now a process-driven operation that can be easily managed by a new owner.

Assets Included in Sale

• All domain names and associated social media accounts

• Website and content

• Customer and partner information

• Employee contracts (contractors)

• Server infrastructure and AI content generation system

Growth Opportunities

• Geographical Expansion: Target new markets such as the US, UK, and Canada

• Product Expansion: Increase revenue through new offerings such as training courses and investment tools

• Cost Reduction: Utilize AI for content generation to significantly reduce operational costs

Conclusion

This company presents an exceptional opportunity to acquire a profitable and growing financial media business with significant upside potential. With a strong brand, established revenue streams, and opportunities for expansion, this business is well-positioned for continued success under new ownership.

___________________________________

About the Agent 

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.