Philadelphia, PA (PRWEB) January 18, 2007
A five-year-old Internet advertising company with local advertising technology platform -- which has 16 pending patents and approximately 550 geographically specific websites available for licensing -- has announced that it is for sale.
The company provides entrepreneurs with a platform to sell internet advertising space to local businesses through an automatic turnkey application. The internet space, which is licensed to local entrepreneurs, presents geographically specific advertisements and discount coupons for businesses and restaurants. The website views present consumers with marked-down products and services from both local and national merchants in a user-friendly way. Currently, 90 percent of local U.S. websites are available to be licensed, so there is a tremendous potential for growth.
The company's proven business model has been rolled out to domestic licensees over the past 12 months. The current owners are sharply focused on strengthening their competitive position in domestic markets, and they are presently implementing an international expansion strategy as well. Specific growth opportunities include all metropolitan areas and small communities in the U.S, as well as cities ripe for penetration overseas.
The company provides two website formats to licensees--one focused on general business, and one focused on dining. The technology platform can be easily upgraded and built upon. The licensee agreement will give the new owner(s) of this business free reign to conduct national advertising on all local websites.
The pre-tax profit of the company was over $500,000 in 2006, since the 3rd Quarter 2006 revenue substantially increased with 2007 Pre-Tax Profit projected at $1.6 million. The company generates revenue from fixed licensing fees (which vary by geographical location); monthly maintenance fees; consulting services provided to licensees; and national advertising fees.
Licensing agreements are 60 months long, and if a licensing agreement becomes insolvent, the licensor may resell the license to a new licensee. All pending license agreements are transferable to the new owner(s).
The asking price for the company is $3,950,000. The company's value proposition lies in its proven patent pending technology platform, the current and future revenue potential from its existing portfolio of local domains, and its opportunity for increased national and international expansion. The current owners plan to provide strong transition support and training to new owners following the company sale.
The company is being sold with the help of eBizMLS.com, an online internet business acquisitions company that has helped numerous small- to mid-sized internet companies sell their businesses. eBizMLS.com utilizes a variety of advertising and marketing tactics, including state-of-the-art search engine marketing and advertising techniques, to promote their business listings online. For more information, go to http://www.eBizMLS.com.
Bob Young, Sr. Business Broker