Selling A SaaS Company | KBS Corporate

Software-as-a-service (SaaS) businesses continue to innovate the computing market, offering access to intuitive cloud-based services in the age of digitisation.

As global industries look to evolve with technological advancements offered by SaaS businesses, buyers are recognising the value and growth potential of these companies. KBS Corporate can work with you to sell your SaaS business, assisting you in fulfilling your professional goals.

Why sell your
SaaS business?

Selling your SaaS business 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 business?

It is never too early to consider a SaaS business 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 business?

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 business?

The most successful business 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 business to an industry trade buyer
  • Retained minority shareholding with continued day-to-day involvement
  • Private equity investment, facilitating growth under your leadership

How do you prepare
to sell a SaaS business?

Selling a SaaS business 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 business, 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

Valuing your
SaaS company

The strength of your software is a key consideration when considering a SaaS business acquisition — how much revenue does your product generate and how much potential does it have?

When looking at SaaS businesses, 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 business 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 business 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 business sale in motion, please get in touch with the KBS Corporate sales team and start working towards the deal that is right for you.

Our past successes in the SaaS sector include the following sales:

  • PushFar is a world-leading global mentoring software platform, utilised by professionals and students to facilitate career progression. The company works with household names such as Samsung, Nissan, BNP Paribas Real Estate and Sodexo. The business was sold to ScaleUp Capital, a specialist in small digital business investment.Read more about the sale of PushFar here: KBS pushes the button on mentoring software business sale
  • Advizzo has developed a comprehensive SaaS solution that enables commercial organisations and their consumers to improve energy sustainability and cost efficiency. The business was acquired by Calisen Capital, which is currently focused on capturing the opportunities offered by the government-mandated roll-out of smart meters in the UK.Read more about the sale of Advizzo here: Advizzo acquired by energy infrastructure market leader
  • Go Media, now operating as Oomph Works, is a boutique software house, offering an extensive range of bespoke web, app and business systems to clients throughout the UK. The company was acquired by ACI Group, which is developing an AI-powered SaaS data solution that incorporates all aspects of both traditional and non-traditional supply chain elements.Read more about the sale of Oomph Works here: KBS Corporate Oversaw the acquisition of Go Media Limited – KBS Corporate

RECENT BUSINESS SALES IN THE SAAS SECTOR

X
Completed Sale

C.H.I. UK Ltd

C.H.I. UK Ltd has been sold in a deal overseen by Will Griffiths, KBS Corporate Transaction Adviser.

Incorporated in 2005, the Tyne and Wear-based company is a specialist in business and domestic software development.

It operates OrchidLive, a secure online system for storing occupational health records via a state-of-the-art web application.

Offering 24/7 access to occupational health data, C.H.I. UK comprises a passionate team of developers with almost 100 years of combined experience in their field.

The software is trusted by some of the largest private and public sector organisations in the UK to power their occupational health teams, taking care of nearly one million employee records.

The company has been acquired by an investment team headed by Oliver Bridge, who has joined as Managing Director of OrchidLive.

Will Griffiths said of the deal: “There was significant interest in the opportunity from both private equity and trade buyers, due to the recurring revenue model and margins. I’m very pleased with the outcome of the sale.”

KBS would like to thank Claire Stretton of legal firm Gateley PLC, whose work Will described as being “great throughout the process”.

acquired by

C.H.I. UK Ltd
Sector: Software
Location: Tyne and Wear
Buyer: Oliver Bridge

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
C.H.I. UK Ltd

Sector: Software
Location: Tyne and Wear
Buyer: Oliver Bridge

X
Completed Sale

MD Consents Ltd

MD Consents, a specialist provider of software-as-a-service (SaaS) solutions for the healthcare sector, has been sold to US-based EngagedMD.

Founded in 2017, London-based MD Consents is on a mission to transform the informed consent process across the UK’s healthcare industry.

The company, led by Susan Diamond and Tony Marven, has developed a cloud-based SaaS platform for the benefit of clients in the public and private healthcare markets.

The strength of MD Consents’ offering has provided access to NHS procurement contracts and the government’s Digital Marketplace via G-Cloud 12.

The sale was overseen by Steve Alcock, KBS Corporate Deal Executive.

“MD Consents boasts an innovative SaaS platform and a strong client base, accounting for relationships with key NHS trusts and private healthcare providers,” said Steve. 

“The company was immediately an attractive opportunity for potential buyers looking to access larger contracts in the UK market.” 

EngagedMD, based in Washington D.C, has acquired MD Consents as part of its long-term strategy to enter the UK healthcare sector.

Throughout its time in operation, EngagedMD has developed intuitive solutions that automate administrative tasks throughout the healthcare delivery process. Consequently, the US-based company has served over 20,000 clinicians and facilitated eight million signed forms. 

MD Consents director Susan Diamond said: “The combination of the EngagedMD and MD Consents platforms ensures our customers will continue to benefit from a robust consenting platform.

“We look forward to continuing to respond to our customers’ challenges and delivering more innovative features and services.”

Taylor Stein, co-CEO of Engaged MD, said: “EngagedMD and MD Consents share a common vision – to improve patient experiences through informed decision-making. This acquisition is a significant step forward in realising that vision on a broader scale.”

Steve Alcock added: “I have enjoyed working with Susan and Tony throughout the sale and wish them all the best in the future at MD Consents and beyond.”

acquired by

MD Consents Ltd
Sector: Healthcare Software
Location: London
Buyer: EngagedMD

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
MD Consents Ltd

Sector: Healthcare Software
Location: London
Buyer: EngagedMD

X
Completed Sale

PushFar Ltd

A second software-as-a-service (SaaS) company, PushFar Ltd, has been sold by KBS Corporate to investment company ScaleUp Capital, which specialises in funding small digital businesses.

In April 2022, ScaleUp bought Rungway with the help of KBS, and now the transaction for PushFar, which was overseen by George Barnes, Associate Corporate Director, will align suitably with that acquisition.

PushFar, with its HQ in London, is a world-leading global mentoring software platform, utilised by professionals and students to progress their careers. The company works with household names such as Samsung, Nissan, BNP Paribas Real Estate and Sodexo.

Co-founders Ed Johnson and Gabriel Sirbu will remain with PushFar post-completion to continue the growth the company has delivered since its inception – which was based upon an idea that was formulated in the latter part of 2017.

“We are thrilled to join forces with ScaleUp Capital,” said Ed Johnson, the PushFar CEO. “This collaboration represents a significant milestone for PushFar as we continue to evolve and revolutionise the mentoring space.

“With ScaleUp Capital’s support, we will be able to accelerate our growth trajectory and further empower professionals worldwide.

“KBS Corporate has been a fantastic partner for us. From initial research through to deal completion, George, 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.”

KBS Corporate’s George Barnes added: “PushFar generated substantial interest as mentoring is now a core focus of many HR and training & development teams, as a means of promoting career development and staff retention with organisations noting these topics are intrinsically linked.

“PushFar, with its easy-to-use system, helps to leverage this previously unquantifiable asset to deliver substantial benefits to employees which aid company objectives as a whole.

“There is a strong demand for SaaS-based businesses due to the reliability of revenue and certainly a strong market for businesses with a growing SaaS revenue. Buyers are especially keen on businesses that are growing rapidly (ideally 100% per annum), operate within a niche and have contract lengths of more than 12 months (ideally three to five years).”

Regarding marketing the company to prospective buyers, Sara Fletcher, Senior Corporate Document Writer at KBS, commented: “PushFar’s award-winning software and diverse client base provided an excellent focal point in creating the documentation.

“I was able to highlight the significant advancements the company had made in recent years and its considerable potential for growth, particularly with regard to the ongoing demand for SaaS products and the greater demand for diversity in the workplace, which the software is well-placed to deliver.”

As the name suggests, ScaleUp invests in growing companies to accelerate their expansion, providing funding, expertise, methodology and support.

George Barnes added: “They are keen to look at any software businesses. The business we sold to them previously (Rungway) will be complementary to the type of services PushFar provides. This represents quite a strong cross-selling opportunity.”

acquired by

PushFar Ltd
Sector: Software and IT
Location: London
Buyer: ScaleUp Capital

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
PushFar Ltd

Sector: Software and IT
Location: London
Buyer: ScaleUp Capital

Speak to our expert team on 0161 258 0118 to arrange a consultation

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