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What is the exit value of a Micro SaaS with an MRR of $290?

Suppose I have a Micro SaaS with 100 free users and 10 paid users at $29. How much could this be worth? I saw somewhere that a single sale for $30 exited to $8000. What is the formula for this?

posted to Icon for group Micro SaaS
Micro SaaS
on April 14, 2023
  1. 3

    i read somewhere (cant recall the sources, sorry) to be 3 to 5x the ARR

  2. 2

    Sorry to give the worst ever consulting answer but…. It depends. :)

    Some variables to consider:

    • How built out is the brand? What is the following and active customer base like?
    • How developed are the processes? Having something thrown together for delivery is entirely different than a clear, detailed system ready for transition
    • What is the user attraction model like? Has it proven to be effective or would another one need to be built/tested?
    • How much does it cost to acquire users?
    • Are legal/financial docs in order?
    • Churn rate?
    • Traffic sources?
    • How “clean” is the code? Can someone else step in and take it over or will there be extensive work to understand/keep it going?
    • What is profitability on a monthly basis?
    • A number of other things

    Generally speaking, Saas is selling at a multiplier of 2-5x (Multiple = Valuation / ARR). All the stuff I listed above goes into the valuation part of the equation.

    From my experience, all of these items need to be on point to ask for a higher end multiplier ie; worth it to a seller, especially at such a low MRR rate.

    A buyer doesn’t want to spend more $ reworking all of these things just to get started with making the asset profitable.

    Most folks (myself included at times) don’t build to sell, they build to maintain. And therefore most assets that we build need a lot of work/prep to sell.

    It’s like buying a house that’s dilapidated to run an airbnb out of…it’s a major sink of funds/time/energy before there’s even a real opportunity to make income.

    You also have to consider the difference between a private sale, a listing on a public marketplace to a stranger vs being acquired - all different outcomes that can shape the $$ you’d receive from a sale (and it’s form! Might be lump sum, earn out over time, etc).

    So… ending where this started, it depends on what you’ve got going on there!

    1. 1

      Thank you for your detailed comment.

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