For Sale: Niche Financial Service - High Asset Value - Los Angeles Area

Description About This Posting: Niche Financial Service - High Asset Value

This small 16 year old firm, which operates in 25 states, is the undisputed national leader in its highly niche area of the financial services market (broadly speaking as it does not engage in traditional financial service related activities). The company relies on its private investigation licensing, data collection and data management abilities, and in-house 18 person print, direct mail and customer service staff to facilitate client's financial settlements. It is not a debt collection or debt settlement company or legal service; in fact, is quite the opposite. It could best be described as a feel good' service whose 400,000 plus past clients welcome its unique value proposition. In fact, those who do not qualify to become clients wish they did, as the company is only paid on a performance basis!

The business can be operated from a 2,500 square foot office with a 1,000 square foot warehouse, or less if any of the printing, mailing, information technology or customer service functions are outsourced. While the company's information technology know-how, licensing, business processes and best practices are invaluable, its 85 million person database, which is deemed to be 97% clean' (usable and accurate) is its crown jewel. Systems for continuously aggregating and improving this database are in place.

The database is comprised of name records that span across all states. The records typically includes resident's first and last name, middle initial, suffix, previous or current street number and name, city, state, zip code as well as date of last update. At a potential range of $0.08 - $0.15 per record, this database may possess a $6.8 - $12.75 million value. Any measures to expand or improve the database, including entering into partnerships or joint venture relationships, could result in enormous increases in profit to all involved!

While small and comparatively unsophisticated mom and pop style operators may work in overlapping states, none are as heavily invested, licensed or capitalized to rival this firm's dominant market position. Certainly none has amassed the aggregated database that's been developed or invested as heavily in data scraping and automation systems. As a result, due to varying state licensing requirements, data sciences investments and 16 years of best practices that have been developed, significant barriers to entry exist and competition is considered to be low.

The family operated enterprise has run on auto-pilot' for several years, so a number of avenues for growth exist within its current business model. Far more potential exists when its offering and database are applied in the larger marketplace.

Organic growth may be achieved from the firm entering new markets (e.g. new states, some of the largest of which remain untouched), improving the database to be even large and more accurate, utilizing technology to further streamline process and enhancing the company's credibility by highlighting its unique offering and underscoring its historic accomplishments. Improvements in any of these areas could vastly improve their key metrics, which include an 8% - 9% initial direct mail response rate and a 5% - 7% customer conversion rate.

Tremendous growth may also be realized if the company is able to utilize social media data matches or apply family based locations services such 23 and Me, Ancestry, MyHeritage, Family Tree, to its business model to locate client's family members.

Perhaps the company's greatest potential stems from its ability to provide an enhanced service offering to established subscription-based credit or identity monitoring services, or by otherwise partnering with these service providers to capitalize on their reach and credibility. The enhanced trust that a Credit Karma, Free Credit Report, Experian, Equifax, TransUnion, Fico bring to the table could yield unbelievable results. These firms would also reap immediately benefits from their ability to offer this value added service alongside their own offerings!

Training: 2 Weeks at 20 hrs/wk.

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Helpful Resources To Assist In Selling And Buying California Businesses

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.

Helen Yoo: Escrow & Bulk Sale Services - Southern California New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.

Diane Boudreau-Tschetter: Escrow And Bulk Sale Services California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

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