Going rates for acquisition of smallish SaaS companies (<= $X00k ARR) are 2X to 3X of the yearly revenue minus required costs. #microconf
@cperciva The "required" in required costs is a little quirky with how it interacts here. e.g. My travel counts against profit but not SDC.
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@cperciva SDC = "seller discretionary cashflow", which is the metric that most of the brokers/buyers care about. Often higher than profit. -
@patio11 Ah, what you call "SDC" I call "profit", and what you call "profit" I call "profit minus income tax dodges". ;-) - 3 more replies
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