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!
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