Web Hosting Company | Shopping Cart Software
Spanish speaking Latin America is dominated by small and medium-sized businesses, as well as standalone entrepreneurs and micro companies. This is the target group for this Internet Business Opportunity.
The business provides first-class easy-to-use shopping cart software, available in both Spanish and English, for creating and managing professional online storefronts. The software was released September 2000 with a focus on the Hispanic markets in Spanish-speaking Latin America, the United States, and Spain. It was then the pioneer software of its kind in Spanish and leads as the dominant solution on the market.
There are 439 million Spanish speakers in 21 countries, of which 89 million use the Internet (March 2007). The Internet unites them thanks to the common language, expandinlefore. The market is complemented by the large and solid Hispanic populations in the United States and Spain. The Latin American eCommerce market ranks fourth in the world for online sales – after the USA, Europe and Pacific rim countries. Latin America has seen some of the world’s fastest growth in online business, which will continue. Internet usage is also growing rapidly, Spanish-language content sites are proliferating and eCommerce revenues are strong.
To see 2007 statistics world Internet usage in Spanish click the thumbnail on the left to enlarge.
More important is the rate of growth of Internet users in Spanish speaking countries. According to Internet World Stats the significant country growth rates are Argentina (420%), Colombia (663%), Ecuador (437%), Mexico (736%), and El Salvador (1492%). This compares to a North America growth rate, during the same period, of 115%.
Language of merchants using the Shopping Cart software:
English 128 (5.6%)
Spanish 2139 (94.4%)
The countries with the highest percentage of this Internet Business For Sale Shopping Cart and Hosting Solution Software are:
Mexico (18.5%)
Peru (12.0%)
Colombia (11.3%)
Argentina (8.1%)
Venezuela (4.9%)
Ecuador (2.7%)
Bolivia (2.2%)
Note that the growth in merchant acceptance of the company’s solution is closely tracking Internet usage growth rates shown in the above statistics. Meaning the company expects to continue its’ rapid growth as more Spanish speaking users and merchants come online.
Merchants Using the Company’s Shopping Cart:
Individual business (1 employee) 1030 (45.4%)
Micro business (2-5 employees) 888 (39.2%)
Small business (6-19 employees) 239 (10.5%)
Medium business (20-49 employees) 55 (2.4%)
Large business (more than 50 employees) 55 (2.4%)
These statistics track closely with North American online merchants. Where 79% are home based businesses with 1 to 5 employees.
The buyer intent on an offer for this business will want to focus on a cash down payment at Closing, and an earn out over several years for the sellers. The Sellers admit they started too early (2000) with introducing their shopping cart in Spanish solution to the market. However, having started early then now have a brand recognition on which to capitalize. Including the fact that their free online merchant course is used as the syllabus at Central and South American universities.
| Operations | |
| Year Established: | 2000 |
| Year of Last Acquisition: | 2000 |
| Form of Ownership: | Sole Proprietorship |
| Absentee Owner: | No |
| Percent of Business Online: | 100% |
| Days & Hours of Operation : | 24/7 |
| Number of Employees : | 1 |
| Years Owned | 7 |
| Business Age | 7 |
| Full Time Owners | 0 |
| Part Time Owners | 2 |
| Location: | complete NDA to obtain the 29 page Business Profile |
| Type of Location: | Virtual |
| Relocatable: | YES |
For more information on this Internet Business Opportunity, or more than 20 additional Internet Business Opportunities, contact Business Broker Don Janke. With over 20 years Online/Internet experience I can guide you to your ideal acquisition.
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Hello
What is the estimated asking price for this company?
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Hi Cory:
The owners received an offer at $195,000; which was declined. The successful Buyer will most likely make a two part offer. Part one is cash at Closing. Part Two is an “earn out”. An earn out allows the Sellers to participate in a percentage of revenue, gross profit, or net income; typically for a period of three to five years post closing. This form of purchase is made when the owner’s have substantial assets invested in the business, and a strong recognition in the category, but has not yet monetized to any great extent. For example, look at the ~$400M purchase price of MySpace.com when its’ revenue were “a few million”. Social Networking web sites have yet to find the magic to properly monetize; although, the category is strong and monetization will arrive in the future. The purchase of MySpace.com included an earn out formula based on future monetization.
Don Janke, Internet Business Broker
September 4th, 2007 at 10:26 pmThe Asking Price is not set. What I’ve explained to the owners is to expect an offer comprised of two components. The first componenet is a cash down payment. The second component is a proposal of an “earn out”. An “earn out” is made when a business can not support a higher offering price based on historical earnings; but the future earnings potential is based on the “intrinsic” value of the business. An earn out is typically a percentage of gross revenue or gross profits over a period of one to three years.
September 5th, 2007 at 3:38 am