Customer ROI is easy to understand
One avoided wrong part, one saved diagnostic hour, or one prevented comeback can cover the subscription.
CONFIDENTIAL ACQUISITION OVERVIEW V0.1
The diagnostic relationship is worth more when it reaches the repair.
Repair Badger turns complaint intake, evidence, testing, repair paths, and source-backed guidance into one diagnostic workflow. The next layer connects that workflow to parts, tools, and equipment sourcing.
HEADLINE ASK
$65M
Cash acquisition / headline valuation
20Kaccounts
$10.1Mmodeled ARR
33K5-year payback case
IP + commerce + support package
THE THESIS
A small subscriber base can support a meaningful acquisition case.
The core argument is customer payback first, subscriber math second, and downstream commerce as a natural extension of the repair workflow.
The scale requirement is modest
At a modeled blended ARPU of $42.10, 20,000 accounts produce approximately $10.1M in annual recurring revenue.
Paid growth can be measured
Automotive repair intent is commercially reachable. The buyer can replace every acquisition assumption with launch data.
THE MODEL
Subscription economics create the core case.
Working assumptions are shown openly so a buyer can pressure-test the path from accounts to cash flow.
20,000 paying accounts
≈ $10.1M ARR
50% DIY at $25/mo, 40% technician at $49/mo, and 10% shop at $100/mo produce a $42.10 blended ARPU.
33,000 paying accounts
≈ $16.67M ARR
At a 60% mature free-cash-flow margin scenario, the model reaches approximately $10M in annual FCF.
Illustrative subscription run-rate
| Active accounts | Monthly recurring revenue | Annual recurring revenue |
|---|---|---|
| 6,000 | $253K | $3.03M |
| 10,000 | $421K | $5.05M |
| 20,000 | $842K | $10.10M |
| 33,000 | $1.389M | $16.67M |
| 50,000 | $2.105M | $25.26M |
| 100,000 | $4.210M | $50.52M |
Modeling note: these are working assumptions, not actual launch performance.
THE REVENUE ENGINE
One diagnostic brain. Four customer doors.
The product can meet the market at different price points while preserving the same mechanic-native workflow.
DIY vehicle owner
Mobile-first guidance, guided diagnostic flow, photo and VIN intake, and unnecessary-parts prevention.
Individual technician
Evidence-based workflow, wiring and test planning, and verified fix retrieval.
Independent shop
Multi-tech workflow, private knowledge, shop standards, training support, and comeback prevention.
Enterprise / strategic
Strategic licensing, co-branded diagnostic layers, fleet and heavy-equipment expansion, and data or API channels.
The same diagnostic relationship can support subscription revenue and downstream purchasing.
THE SECOND ENGINE
Diagnosis can lead naturally to the right purchase.
Once a repair path is confirmed, Repair Badger can identify the parts, tools, meters, fluids, safety gear, and equipment needed to finish the work.
At the 20,000-account milestone, the working model implies approximately $518M in annual shop parts purchasing. Routing 25% of that procurement at a 2% effective revenue share produces approximately $2.78M in modeled annual commerce revenue.
01Complaint
02Diagnostic path
03Confirmed failure
04Required parts and tools
THE BUYER CASE
The buyer acquires time, workflow, and leverage.
The value is not limited to a codebase. It is a head start in a mechanic-native diagnostic workflow that can sit in front of an existing information or distribution business.
01
Working product direction
Diagnostic workflows, prompts, review paths, and subscriber packaging designed around real repair decisions.
02
Founder workflow DNA
Five years of creative advisory focused on what mechanics need, where tools fail, and how trust gets earned.
03
Strategic re-entry
An AI-native front end for a trusted repair library, shop platform, fleet operator, or automotive information incumbent.
VALUATION BRIDGE
$50Mcore subscription case
+
$8M-$14Mmodeled commerce value
≈
$65Mheadline ask
The $65M ask creates negotiation room while staying tied to the modeled range. Exact multiples and transaction terms remain diligence questions.
Model discipline matters. CAC, conversion, churn, AI cost, support load, data rights, and commerce partnerships must all be replaced with measured evidence during diligence.
A CONVERSATION WORTH HAVING
Request a confidential product, technical, or strategic review.
For acquisition information, diligence materials, or a conversation about Repair Badger, email either contact below.