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Tips for a 2018 Sale of Your SaaS Business

Posted by Charles Fisher in Articles

Software companies are currently considered one of the most profitable types of businesses to sell, which makes it a ripe opportunity to schedule a consultation with an online business broker about selling your business today and initiating the valuation process.

Do Software Companies Sell Well?

According to a recent analysis, software companies sold for an average multiple of 2.87x in 2016 and that number has only continued to grow. Here at Website Closers, we sell SAAS companies fro 5-7x!

One of the primary considerations for anyone selling an SaaS business is how to get the best possible rate for the business they have put so much work into. Software as a service is an extremely compelling business model but one that often takes a great deal of work and research to bring to the market.

You need a valuation service that can help you to figure out whether or not now is the right time to sell and what you can do in order to leverage the value of your company as much as possible.

As an ongoing trend in the software as a service business selling space, larger companies are currently pulling in much higher multiples in terms of valuation. But businesses of all sizes in the software as a service based can still reap excellent value. The process of selling a software as a service company is one that may initially seem overwhelming even if you know that the time is right.

Do I Really Need Outside Help to Sell My SAAS Business?

Scheduling time to chat with an online business broker who has extensive experience preparing software companies for sale and moving them through the process is helpful for getting all of your questions answered. You’ll need to get a valuation of your software as a service business so that you are clear about what it’s worth and what you may be able to receive in the market, then begin putting together the prospectus including the numbers, facts and figures about the company.

The Role of an Investment and Vetting Platform in Selling a SAAS Business

A high-quality investment platform such as one used by your online business broker to identify appropriate buyers is the next stage after you’ve completed the valuation and the prospectus. When you have an online business broker negotiating the price with potential buyers, this removes you from the situation and eases some of the discomfort or confidence you might have around the actual transaction.

Negotiations can be notoriously tricky and having the support of an online business broker who has helped in these types of delicate situations before can ensure that the process proceeds as smoothly as possible.

What Happens After We Complete Due Diligence in a SAAS Sale?

After you verify the buyer’s financials through the due diligence process, you’ll then transfer all of the money and assets and help transition the new buyer into running your business. Businesses of many sizes are most appropriately sold privately through an online business broker who can help you to identify the most appropriate steps for you and the right buyer.