I'm curious what a very small saas business like $5-$15k per month gross revenue would get if it was sold. A product business though, not a content business. I'm asking because I'm both interested in the possibility of buying one if the opportunity presented itself and of course because I'm planning to start one that I might one day wish to sell myself.
A business as you described has a very key point to consider - how critical is the founder to success.
At those kind of revenues likely a small (if any) team so all key knowledge is in the founders mind. Once they sell their motivation goes, even if you lock them into working for a reasonable handover period.
Thank you for your response! I really appreciate it. I know I was thin on my details, but any response was going to be informative
I look for MRR, churn, age of the business and time involved to operate. Based on the information, it can go anywhere from 2.5x to 4x of annual net.
Thank you for your response! I really appreciate it. I know I was thin on my details, but any response was going to be informative.
Btw. What's MRR? Monthly Recurring Rev...did I guess right?
Yes :)
Sorry, I don't really understand what you are asking, can you clarify?
Edited. Does this make more sense? Also thank you for spotting my poorly crafted post, because it didn't make sense and I wouldn't have gotten a response without some more tweaking
No problem, the edit is better :)
Am pretty sure others will come up with better answers. Generally I've seen 3x annual profit (not revenue) as a general guidance. It can be much more than that, but it depends on so many things.