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11 Comments

Anyone ready to sell their side project?

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:

  • $1k to $15k MRR
  • B2B SaaS or a developer tool

Referrals:
Referrals welcome, we'll pay out 1% sale price for finding the deal!

How much we'll pay:

  • Take your trailing twelve months income and subtract your expenses. We'll pay between 2-4.5x that (yes, it's unfortunately a wide range. Think 3.25 if that's helpful).
  • if you haven't been around that long, but have strong growth, we'll be generous and you can take the most recent two months and extend that out (as if you've been making that for a year) and we'll apply the multiple to that number

We try to close in < 30 days. Could probably do it all same day if needed.

Current Portfolio:

  1. 2

    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.

    1. 2

      awesome. twitter works https://twitter.com/AndrewPierno or andrew at xoxo.capital

  2. 2

    @andrewpierno interesting to see sheet.best in your portfolio, because we are building https://sitefast.live/. :)

    1. 2

      sheet.best + site.best haha.

  3. 2

    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.

    1. 2

      very kind of you! 🙏

  4. 2

    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 ?

    1. 2

      We'd do 100 - 40 = 60k * 3.25 since that's the total cashflow available to a new buyer.

    2. 2

      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.

  5. 1

    This is awesome, love your portoflio!

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