Jul 30, 2020
How do you sell your SaaS?
I mean… how does that process actually look, end
to end, from meeting a buyer to pocketing a 7+ figure paycheck?
Buying and selling a
business isn’t like walking into a store, picking an item
off the shelf and approaching the counter.
There are valuations, due diligence, escrow accounts, handover
processes, and more… before the massive
paychecks can get cashed.
It’s quite a process.
I’ve sold 3 of my own companies, I’m an
investor in 40+ other companies, and as a business coach, I’ve
helped clients through many sales and handovers.
So I know how it works.
But I’ve still got nothing on Kevin McArdle.
Kevin is the CEO and co-founder of SureSwift Capital and in the past 4
years…
…he bought 34 companies.
No, not invested. Bought. Outright.
Kevin mostly buys bootstrapped B2B SaaS companies, small teams of a
founder/ developer with about 3 – 5 contractors whose business
makes $25 – $100k MRR.
In other words, he’s the perfect buyer for a small software founder
that wants to cash out.
I sat down with Kevin in the latest episode of the Escape Velocity
Podcast and quizzed him on everything about
buying and selling businesses.
If you’ve ever wanted to ask a SaaS buyer exactly how
they think about buying, then this is THE interview you need to
hear.
You’ll get answers to:
- How much a SaaS will sell for
- What’s an attractive profit margin for a seller
- Why SaaS founders sell (it’s not always for the
cash)
- What an end-to-end sales process looks like
- What a buyer is looking for
- What terms you can expect in a sales agreement
- The different stages of a handover
- How SureSwift capital grow their businesses after purchase
- How Kevin and his team started their company from scratch
I’m so lucky to interview people like Kevin.
This guy has a wealth of knowledge and was incredibly generous with
his answers, sharing revenue figures, percentages, business names,
and more.
I’ve met a lot of business people who like to hold their cards
close to their chest.
Not Kevin.
If anything, I think this interview will show you that there ARE
buyers looking for small SaaS companies of only 5 people and they
are willing to pay millions for it.
You might be closer to selling than you thought.
Check out the episode here and leave a
comment thanking Kevin for his time – I’ll make sure he reads
them.
--
Dan Martell has advised more startups than his hometown
has people and teaches startup founders like you how to
scale. He previously created, raised venture funding
for and successfully exited two tech startups: Flowtown and
Clarity.fm. You should follow him on twitter @danmartell for tweets
that are actually awesome.
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