How do I sell my SaaS company?

Posted on by Author

How do I sell my SaaS company?

If you want to sell your SaaS business, the first step is often to contact a broker who can help you value your business and attract buyers. Interested parties will work with the broker and hand over information. The broker will then suggest your business to buyers they consider to be suitable.

When can you sell SAAS business?

If you have not yet reached a positive economic model (i.e., CAC is greater than LTV), then you should sell as soon as possible, as every month of spending is actually eroded value. If your churn is so high that you are barely replacing revenue with new bookings, then high churn will eventually erode value.

What is a good ARR for Series A?

READ:   What does args length mean?

Where is the bar today for Series A? At least $1M in ARR (annual recurring revenue) minimum, $2m — $3M + even better, if you’ve gotten to that level in 12 to 18 months and have a 2x — 3x year over year growth rate, this will excite investors.

How to value your bootstrapped SaaS company?

How to value your bootstrapped SaaS company. Terms and considerations you should know if you’re thinking about selling your SaaS now, or in the future, including SaaS valuation multiples. Ultimately, the market determines the value of your business.

Is a SaaS business one for a valuation using Sde?

An answer of “yes” to any or all of the above means the SaaS business is one for a valuation using SDE. Investors will likely appraise the business based on this benchmark alone and apply a multiple to arrive at the final business valuation. If the answer is “no”, EBITDA or revenue might be more appropriate.

READ:   Where is throne of Shivaji Maharaj?

What should you know about SaaS valuation multiples?

Terms and considerations you should know if you’re thinking about selling your SaaS now, or in the future, including SaaS valuation multiples. Ultimately, the market determines the value of your business. In other words, your company’s value is the point where what you’re willing to sell for, and what a buyer is willing to pay meet.

Does MRR matter when valuing a SaaS business?

So, a $200k MRR business is likely going to have a higher valuation multiple than a $20k MRR business, and that business will have a higher multiple than a $2k MRR business. However, MRR is not the end of the story when it comes to valuing a SaaS.