Would You Buy This Healthcare SaaS? (Birth Tracking App)

In this episode of Acquisitions Anonymous, hosts Michael and Heather evaluate a niche SaaS business: a HIPAA-compliant birth tracking app for midwives, doulas, and OBGYNs. The app generates $139,000 in annual recurring revenue (ARR) with $97,000 in profit, running at 80% net margins, but has zero growth over seven years and only 100 customers. Despite its profitability, the hosts express skepticism about the $400,000 asking price—4.1 times profit or 2.9 times revenue—due to lack of growth, minimal differentiation from spreadsheets, and looming technology disruption from AI-powered 'vibe coding' tools that could recreate the app in days. They debate whether a content-driven B2B strategy targeting doulas through YouTube or social media could unlock growth, but ultimately conclude the business is too small to justify a major commitment and too fragile to warrant a premium valuation. Michael offers $97,000—just one year of profit—calling it a '45-degree day': not cold enough to matter, not warm enough to act. The episode ends with a humorous reflection on the lack of entrepreneurial excitement around the deal, despite its solid cash flow.