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Use This Checklist to Sell Your SAAS Company

Posted by Dipen Mengar in Articles

Selling an SAAS company should always be considered an important process that involves numerous different steps. All of these steps can be aided by the assistance of a knowledgeable online business broker.

Brokers Make Sales Easier

Being prepared and having conversations in advance with a business broker can help you feel better peace of mind about the situation and your clarity. The more you are prepared with a thorough checklist the easier it will be for you to approach the sale of your SAAS business. The first stage of selling an SAAS business involves getting a valuation.

How Do Valuations Help Your Company Sale?

Valuations require a great deal of information in order for your business to be appropriately evaluated. You need to have information including:

  • Your details of assets including physical ones.
  • Financial statements.
  • Registration papers.
  • Legal documents.
  • Business plans.
  • Business procedure documentation.
  • Sales information.
  • Business history.
  • Market conditions.
  • Customer details.
  • Supplier details.
  • Employee details.

A professional valuation may be something that you initially intend to skip. However, you will want to evaluate the benefits of professional advice about how to value your business through your business broker, business advisor and accountant.

All of these professionals serve in different roles and can help you to analyze trends within the industry’s market, your business finances, and help you to identify a value for your business. They will also help you establish a goodwill value of the company and to estimate your profit of your business.

One advantage of using a professional is that they likely have clients who would be interested in buying your business, saving you the frustration and cost associated with advertising. There are three primary ways that your SAAS company be valued. The first is valuing the business based on sales, the second is valuing a company based on assets, and the third is valuing a company using cash flow or profits.

It is easy to engage in the valuation process online without realizing all of the different factors that go into this determination. You should hire an online business broker who is very knowledgeable about these concerns who can help you establish a clear guideline for the future as it relates to determining what is most appropriate for your individual needs.

SAAS companies are a hot market right now because of the legwork that has to be completed before someone buys the company. Most people who see the benefit of recurring revenue might not be interested in putting in all the back-end work to develop the product, test it, and roll it out to consumers.

But after the product has a proven concept, it becomes a much easier sell to prospective buyers. With great return on investment, remember all the hard work you did to develop the company when putting together your plan to sell the company.

A consultation with a trusted business broker who has worked with selling many SAAS companies before will help to encapsulate all the various factors and necessary information critical for establishing a business valuation.

Website Closers regularly works with owners looking to transition their SAAS companies. Contact us today to learn more about how we can help you with every aspect of your company sale.