Co-Founder & Investor at GoVertical - We buy, build and invest in small cashflow businesses
According to acquire.com, SaaS businesses stay on the market for around 97 days (median value). Here are the confirmed purchase price profit multiples by deal size: 👉🏻 <$100k: 4.11x 👉🏻 $100k-$1M: 4.97x 👉🏻 $1M+: 5.65x
Our runners and riders for Q2. Vendr processed 3,000 deals, over $240m worth of SaaS spend. What did we see? - Buyer focus on existing suppliers and consolidating stacks. - For sellers, ACV is down (45%!!!), as are discounts - are we moving towards price transparency? If you buy SaaS, sell SaaS, or invest in SaaS -- this is for you. 👨💻 Link in the comments.
𝐑𝐞𝐚𝐝𝐲 𝐭𝐨 𝐛𝐨𝐨𝐬𝐭 𝐲𝐨𝐮𝐫 𝐒𝐚𝐚𝐒 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬? 𝐋𝐞𝐭'𝐬 𝐭𝐚𝐥𝐤 𝐩𝐫𝐢𝐜𝐢𝐧𝐠! 💰 In this guide, we break down the pros and cons of SaaS pricing strategies and models, from flat-rate to freemium. Discover which approach could supercharge your growth: https://lnkd.in/gbGqmSXC Not sure where to start? Connect with us at SBO, where we help SaaS solutions and start-ups ensure their growth is profitable and sustainable. #SaaS #PricingStrategies #BusinessGrowth #SustainableRevenue
How to Build a Profitable SaaS Business: From $0 to $22,000+ MRR #BootstrappingSuccess #SaaSPlaybook Have you ever wondered if it's possible to go from $0 to $22,000+ in Monthly Recurring Revenue with a SaaS business all on your own? 🚀 I know the doubts and challenges that come with being a solopreneur trying to make it in the digital... Source: https://lnkd.in/gXnTBYDV
Interesting to see SaaS and Non-SaaS median revenue multiples continuing to converge. Some of this is definitely a recognition among buyers that maintenance and support is recurring revenue and very sticky. Also, some of it is likely attributable to many buyers continuing to believe the thesis that perpetual license businesses can increasingly be sold as SaaS. We see buyers continuing to value perpetual-license businesses on a sum of the parts basis, with M&S revenue attracting SaaS type multipliers, while services and perpetual license sales attract a lower multiple (given their one-time nature). #saas #mergersandacquisitions
Understanding the Cost of Acquisition (CAC) is crucial for SaaS success 🚀. It's not just about attracting new customers; it's about smart investment in growth. How do you balance your CAC with Lifetime Value (LTV) for sustainable growth? 🔗 https://hubs.la/Q02kTjjl0 #SaaS #BusinessGrowth #CAC #SaaSFounders #ArkeoAI #SaaSCopilot
One of the best things we constantly work on in our businesses is to add recurring revenue flows. Predictable recurring revenue helps remove stress 😎. What if just 15-25% of your revenue was from recurring sources. Would that change things for the better? Think things like… ✅ Recurring service agreements ✅ Maintaince contracts ✅ Ongoing educational offerings ✅ Add-on products and services ✅ VIP offers ✅ Other company’s offerings ✅ The ideas are plentiful 🚀 Even if your main offerings aren’t recurring like SaaS , you can always add recurring revenue sources to almost any business with some creative thinking. 🧐 😊
𝗜𝘀 𝘁𝗵𝗲 "𝗥𝘂𝗹𝗲 𝗼𝗳 𝟰𝟬" 𝘀𝘁𝗶𝗹𝗹 𝗿𝗲𝗹𝗲𝘃𝗮𝗻𝘁? Based on this very interesting analysis of 116 publicly listed SaaS companies, it seems that the "Rule of 40" (ARR YOY Growth + EBITDA Margin >= 40%) does not seem to be important. Only 13 of the 116 SaaS companies exceed this limit. The average just reaches 11% (Growth + Margin combined!). #saas #valuation
