We analyze a $1.6M customer loyalty SaaS business for sale, uncovering a major revenue concentration risk and industry challenges—would you buy it?

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In this episode, we analyze a customer loyalty SaaS business listed for $1.6M with $275K in cash flow. It seems promising until we dig into the details—revealing a massive customer concentration risk and major headwinds in the industry. Is this business really worth its price tag, or is it a ticking time bomb? Tune in to hear our take!

Key Highlights:
- Business Breakdown: A 16-year-old SaaS company offering text-based loyalty programs.

- Recurring Revenue: $372K in annual recurring revenue with an anchor client under contract through 2031.
- Massive Red Flag: 35% of revenue comes from a single restaurant chain.

- Industry Shift: Major POS systems (Square, Toast, Clover) now offer built-in loyalty programs, making third-party solutions obsolete.

- Valuation Concerns: Priced at 6x cash flow, but how sustainable is this business in a rapidly evolving market?
Long-Term Viability: Would you risk buying a business that could become irrelevant in just a few years?

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