I misread this headline as $400k MRR and was slightly confused for a while. ><
SAME - my heart dropped lol
Same here xD
😇 cc @damonchen @noahwbragg
I know Noah's tweet will be re-posted here 😜Thank you Rosie ❤️
Thanks for sharing Rosie!
Hey, @noahwbragg cool story. I congratulate you and @damonchen on this awesome deal!
I made a few acquisitions, and I am curious did you use escrow for sending money and transition all assets?
If you are interested, I will launch a paid newsletter where I will write about acquisitions, stories, legal docs, nuances and promote Micro-SaaS startups to potential buyers. Would you subscribe when I am done?
I met Andrew Gazdecki a long ago, and his example inspired me to create this newsletter for indie hackers. By the way, it is completely free for startups, and I will help with all of the preparations.
Also, I am looking for makers who want to sell their Micro-SaaS app. If you know someone, please let me know (DM me). I want to include them in my future weekly newsletter.
No escrow. Sounds like a cool idea! Not sure if I'd subscribe as I'm not looking to buy another business right now.
Thanks for your feedback! Everyone who wants to participate, please, write me at email [email protected]. I'll be glad to help :)
congrats @noahwbragg and @damonchen its high time to build Indieacquire 😛
This is awesome!
CONGRATS NOAH ❤️❤️❤️
Congrats @noahwbragg! What an awesome outcome!
Your ARR at time of sale was $4.8k. That means the sale price was a multiple of 5.6x.
Does anyone have any idea if that's pretty standard for small indie SaaS, or any resources on how to figure out what multiples are normal in this kind of area?
Not completely sure but i have heard that smaller micro SaaS can go from 5x to 10x. Really depends on the situation though. They are definitely going for more than normal right now from what I hear. Or there is just growth across the whole SaaS area.
I got an inquiry the other day which was at the level of 1.25-1.75x yearly profit and I thought that was pretty low, so this is reassuring.
Yeah, that's quite low (but dependant on the niche).
Smaller businesses can be sold for much, much higher, if the buyer expects the investment to be pre-rocketing (it's about to explode in growth).
But there are also companies that are sold for 1 x revenue multiple.
It depends on the seller, buyer, niche, organization, and numbers.
After all - what you are selling is worth what the buyer is willing to pay.
Don't mix up revenue and profit though.
Agree - although in my case they're basically the same. And you'd expect the multiple on profit to be higher because profit is always lower, so that 1.25-1.75x is even stranger
I'm curious, what was your original asking price?
Congrats too btw!
Asking price was $35k
Pretty nice multiple for $400MRR! Thanks for the info and all the best!
That’s an amazing story, @noahwbragg. Thanks for sharing!
Thanks! No problem.
Congrats, @noahwbragg and @damonchen!
Very neat testimonial of how this all went down
How long did it take you from the time you announced the product to the world until the $400 MRR?
I think it took Noah around 3-4 months
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