SELLING A SAAS COMPANY
SELLING A SAAS COMPANY
WHY SELL YOUR SAAS COMPANY?
Selling your SaaS company may be the best option in several scenarios. Perhaps you have achieved your goals and would like to pursue a new venture, or maybe you feel it is time to grow with a new partner.
SaaS businesses of all sizes can benefit from a company sale, whether it is a start-up with innovative products or an established organisation looking for a global parent company to access the international market.
WHEN IS THE RIGHT TIME TO SELL YOUR SAAS COMPANY?
It is never too early to consider a SaaS company sale and the timing could be influenced by multiple factors, including:
• All personal goals have been achieved
• Exit and retirement plans
• Financial constraints limiting future growth
• Industry demand for SaaS, leading to a higher sales multiple
If you would like to discuss the current M&A landscape in the SaaS market, please reach out to KBS Corporate for a no-obligation discussion.
WHO WILL BUY YOUR SAAS COMPANY?
KBS Corporate boasts a comprehensive database of international buyers with the funds to invest and acquire. There are various buyer types seeking opportunities in the SaaS market, including:
- High-net-worth individuals
- Trade and synergistic buyers
- Investors and private equity firms
HOW DO YOU SELL YOUR SAAS COMPANY?
The most successful company sales benefit from effective marketing to an extensive buyer network comprising international parties actively looking to acquire. With the assistance of KBS Corporate and its industry-leading business sales team, your company will be seen by a multitude of quality buyers and investors.
You may be presented with multiple offers and varying post-sale structures, such as the following:
• A full sale of your SaaS company to an industry trade buyer
• Retained minority shareholding with continued day-to-day involvement
• Private equity investment, facilitating growth under the existing management
HOW DO YOU PREPARE TO SELL A SAAS COMPANY?
Selling a SaaS company will take time and consideration to secure the preferred outcome for all parties involved. Before going to market, it is beneficial to get your affairs in order, make the opportunity as attractive as possible and ensure the operational infrastructure is ready for change.
Before selling your SaaS company, it is wise to:
- Install a strong leadership team that would offer peace of mind to buyers
- Refine your software solutions in preparation for a larger audience
- Settle any disputes with clients and suppliers
- Prepare analytics, data and KPIs for review
- Liaise with business advisers to identify your goals and desired outcome of a sale
- Organise your finances, prepare up-to-date company accounts and ensure all contracts are in order
I was happy, it was an easy process and KBS handled it well,
I would recommend KBS Corporate to anyone who wants to explore a business sale and is seeking sound advice.
Tim Hogarth
Founder of Hogarth Antiques Ltd
“I was happy, it was an easy process and KBS handled it well. I would recommend KBS Corporate to anyone who wants to explore a business sale and is seeking sound advice.”
KBS Corporate has been a fantastic partner for us.
Within six months of the initial teaser, the deal completed and we are all thrilled with the outcome.
Ed Johnson
CEO of PushFar
“KBS Corporate has been a fantastic partner for us. From initial research through to deal completion, George Barnes (Associate Corporate Director), Aaron (McWilliams, Senior Research Analyst) and the entire team were dedicated, hard-working, thoughtful, considerate and found several parties interested in our business.
“Within six months of the initial teaser, the deal completed and we are all thrilled with the outcome.”
VALUING YOUR SAAS COMPANY
The strength of your software is a key consideration when considering a SaaS company acquisition — how much revenue does your product generate and how much potential does it have?
When looking at SaaS companies, buyers and investors will consider various metrics to recognise value:
- Customer churn rate
- Customer acquisition cost (CAC)
- Customer lifetime value (LTV)
- Monthly recurring revenue (MRR)
- Annual recurring revenue (ARR)
Additional factors that are reviewed when considering a SaaS company acquisition include annual earnings, risk, assets and liabilities, and profit and loss. The overall value of your business may also be driven by the strength of your management team, any facilities owned by the company, and the reliability of ongoing client contracts.
TAILORED SUPPORT WHEN SELLING A SAAS COMPANY
KBS Corporate offers a bespoke company sales service, delivering a tailored approach to the M&A market to identify the right buyer for your SaaS business.
If you are ready to set your company sale in motion, please get in touch with the KBS Corporate sales team and start working towards the deal that is right for you.
With a proven history of award-winning success, we’re committed to supporting you through every step of achieving a company sale that aligns with your goals.
For a confidential, no-obligation discussion, contact us on 0161 258 0118.
SALES WE HAVE COMPLETED
IN THE SAAS SECTOR
acquired by
acquired by
acquired by
