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How do you sell your SaaS company?

isaacdlyman profile image Isaac Lyman ・1 min read

A couple years ago I built a consumer SaaS product (and registered a very simple LLC for it). It's grown quite a bit, and I could see myself selling it if someone makes a good offer. Have any of you done this before? How do you start the process? What should I know going in?

Discussion

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From what I understand, whilst you'll want to have good numbers for the obvious metrics (revenue, users, etc...), potential buyers will also care about:

  • Time taken for a subscription to cover the cost of acquiring the user
  • Proportion of users whose subscriptions are renewed into a second period

These two are considered to be fundamental indicators of SaaS business health.

 

I would think step one is to "ask around"...

Are we talking about edwardtheapp.com/ ?

 

That's the one.