Apnea Trainer is a niche app I have my eyes on recently. It’s targeted audiences are free diver, free divers are folks that like to dive in an extended period of time without using oxygen equipment.
I am not particularly interested in this market nor can I come up with recurrence revenue features at first glance. But I am attracted by the multiple it is selling at. It was listed a couple of years ago, so I get into contact with the current owner. The current owner is a down to earth guy just minding his own business. I like the app because of it’s ranking and easily identifiable audiences, the lack of icloud, subscription is a big plus.
It’s time to talk money. I did a few due diligence and is into the finally price negotiation. And at the last moment, some financial consultant get in the way. Well, it’s not exactly his fault, it’s the German government’s fault. I was surprised to find out that there is such a thing called a small developer status. He said if he sell his app, he will be taxed at the 39% bracket and what make matters worst is if he sells to anyone outside the European Union, he needs to pay an extra %19 pre-VAT. That’s what happened when out of control government strangle entrepreneurship over in Europe.
Well no harm no foul, back to happy cash flow hunting again!