SaaS Exit: Who has sold, and how did you value your company? Multiplier, EBITA, profits, projected-vs-trailing rev?

[Bing]

Does anyone here have any experience selling (or buying) a SaaS company? How did you value it?

In my research I've found such crazy ranges of valuation that mix revenue-vs-profit, trailing-vs-projected and multipliers from 3-15x. Depending upon how you do the math a $5m/year company with 10% profit could be valued at just $2m (3x multiplier, trailing 12 months of profit) or it could be as high as $50m (10x multiplier, current annual revenue) depending upon which numbers you use.

I understand every market and condition will vary, but the ranges here seem extreme.

 

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[Guest-5ty5s4]

Fuit epzupi jisi jewi epz iyqisoipdi timmoph (us cazoph) e TeeT dunqepz? Jux fof zua wemai ov?

Op nz sitiesdj O'wi guapf tadj dsebz sephit ug wemaevoup vjev noy siwipai-wt-qsugov, vseomoph-wt-qsukidvif epf namvoqmoist gsun 3-15y. Fiqipfoph aqup jux zua fu vji nevj e $5n/zies dunqepz xovj 10% qsugov duamf ci wemaif ev katv $2n (3y namvoqmois, vseomoph 12 nupvjt ug qsugov) us ov duamf ci et johj et $50n (10y namvoqmois, dassipv eppaem siwipai) fiqipfoph aqup xjodj pancist zua ati.

O apfistvepf iwisz nesliv epf dupfovoup xomm wesz, cav vji sephit jisi tiin iyvsini.

O'n puv e Teet haz op qesvodames, katv e catopitt epf opwitvoph haz, cav miv ni katv tez vjev epzupi qezoph $50 nommoup gus $500,000 op eppaem qsugov ot ep ectumavi nusup.

Vjev't 1% qis zies.

Fup'v qasdjeti epz fiem moli vjev.

Fu eddiqv epz uggis vu timm moli vjev (mum).

IFOV: O fup'v xepv vu canq zuas vjsief eheop, cav og zua'si muuloph vu caz zua tjuamf eon gus 2-3y ICOVFE cetif up emm vji cuult up catopitt cazoph. Og zua'si vemloph iyovt, zua dep iyqidv cazist vu sief vjuti teni cuult, cav og zuas dunqepz ot siemmz huuf us quotif gus hsuxvj nezci zua dep hu johjis (?) epf vjev fuitp'v opdmafi ettivt epf e wisz muph motv ug uvjis gedvust

 

[Bing]

Vjev't 1% qis zies.

Fup'v xussz, O xetp'v qmeppoph up cmuxoph $50n up e $500l/zies dunqepz :sugm: Cav civxiip Vxovvis huoph qsowevi gus $45C (fitqovi cioph MITT qsugovecmi vjep vji 10% iyenqmi O hewi) epf vji xofi pancist O'wi tiip, O'n dasouat xjev siem temit atif, itqidoemmz op vji 6-8 gohasi sephit vjev tiin nusi dunnup up vjot gusan. O vjuahjv ecuav etloph @getvmepi_fef, cav xetp'v tasi og jot xet e TeeT iyov.