Hi IHers,
I'm Andrew. I co-founded XO Capital last year to buy SaaS businesses. We've bought 2 IHer businesses so far. If you have b2b saas or a developer tool that you're ready to sell, I'd love to speak with you. We're looking to acquire at least 1 a month for the next 10 months.
What we're looking for:
Referrals:
Referrals welcome, we'll pay out 1% sale price for finding the deal!
How much we'll pay:
We try to close in < 30 days. Could probably do it all same day if needed.
Current Portfolio:
Hey Andrew I have a few referrals for you. Would be happy to connect you with founders. Let me know if it's sounds interesting for you.
awesome. twitter works https://twitter.com/AndrewPierno or andrew at xoxo.capital
Just want to add that Andrew is a great guy (I met him recently looking at a deal as a buyer) and very transparent. Even though that particular deal didn't work out, he was very open in sharing all details and was candid. Good luck Andrew.
very kind of you! 🙏
hey @andrewpierno, I appreciate there are different ways to calculate this, and the above is all ballpark anyway until you get into further details.
But I'm curious if are you use the SDE valuation model (see https://www.sureswiftcapital.com/wp-content/uploads/2020/07/how-to-value-your-bootstrapped-saas.pdf), where you'd add back in the sellers discretionary earnings (i.e. the founder/director's salary)?
for example...
£100k revenue (annual)
£40k costs
£25k founder/director salary
-----
giving 100 - 40 = 60k * 3.25
or, are you taking it as 100 - 40 - 25 = 35k * 3.25 ?
We'd do 100 - 40 = 60k * 3.25 since that's the total cashflow available to a new buyer.
Hey @steveprocter. yes we are using SDE valuation model. Just a bit complicated to explain in a short post like this. was trying to keep it simple.
also for tiny deals SDE may not make sense (even if we want it to) bc the cashflow is so small.
thanks Andrew
This is awesome, love your portoflio!