I’m looking at acquiring a SaaS company. Wondered if anyone had any experience with the following:
Valuation: I’m seeing and calculating valuations in the 2x-3x Yearly Profit area. This is for a small mid six figure revenue SaaS business. Are other people seeing similar valuations?
Tech due diligence – I have a software implementation background but wanted to get a 3[SUP]rd[/SUP] party to check off on the code. Quotes I’m getting are $10K and up though, which seems steep for a fairly straightforward app. Anyone have a firm that they use?
Lawyer/acct – I know I’ll need to incorporate beforehand, but I’m trying to find a tech savvy guy to handle the transaction. Most lawyers I know can do real estate, wills, but don’t “get†software IP. The one tech focused guy wanted about $4k-5K for the transaction. Seemed a little steep. Would love a recommendation here and for a good accountant too
SBA loans – I’m pushing for as much seller financing as possible, but has anyone been through a process to get SBA loans on top of that? I’m told its difficult for software, since the gov doesn’t see that as a hard asset. An SBA loan looks like it could finance up to 85% so that would be key.
Thanks in advance!
Valuation: I’m seeing and calculating valuations in the 2x-3x Yearly Profit area. This is for a small mid six figure revenue SaaS business. Are other people seeing similar valuations?
Tech due diligence – I have a software implementation background but wanted to get a 3[SUP]rd[/SUP] party to check off on the code. Quotes I’m getting are $10K and up though, which seems steep for a fairly straightforward app. Anyone have a firm that they use?
Lawyer/acct – I know I’ll need to incorporate beforehand, but I’m trying to find a tech savvy guy to handle the transaction. Most lawyers I know can do real estate, wills, but don’t “get†software IP. The one tech focused guy wanted about $4k-5K for the transaction. Seemed a little steep. Would love a recommendation here and for a good accountant too
SBA loans – I’m pushing for as much seller financing as possible, but has anyone been through a process to get SBA loans on top of that? I’m told its difficult for software, since the gov doesn’t see that as a hard asset. An SBA loan looks like it could finance up to 85% so that would be key.
Thanks in advance!
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
