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Ask HN: Where can I buy real software companies?

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141–150 of 171 posts

Re: Ask HN: Where can I buy real software companies?

#141
On this thread, services like the reinteractive Operations as a Service (https://reinteractive.net/service/sentinel) can help with a SaaS sale. Getting operations and deployment outsourced means one less thing for the buyer to worry about and one big less thing for the seller to handle.

Disclaimer: I work for reinteractive

Re: Ask HN: Where can I buy real software companies?

#142
post #134

Earlier quoted context omitted.

Could you give an example of such unwanted attention?

Customers/users abandoning a product when they learn it is for sale.

Bargain hunters, brokers of ill repute, press and so on, it may also put a serious dent in your ability to do business development until the situation around the (potential) sale has stabilized which in turn will hamper your ability to negotiate.

Re: Ask HN: Where can I buy real software companies?

#143

Why buy another company (as opposing to focusing on your existing business)?

Tax write off? He's too profitable, perhaps!

If your business is too profitable, you may try to grow faster -- that guarantees to eat all extra profit (see Amazon).

Re: Ask HN: Where can I buy real software companies?

#144
post #123

Why buy another company (as opposing to focusing on your existing business)?

It depends on what skills you bring to the table. (Personally) I know I can execute and grow. But I can't for the life of me find an idea to get started with. Also, if you already have an existing business (such as the OP), then you may be able to bring some cost savings (therefore more profit) than someone coming in cold. Or if you already have an existing client base, adding another business to the mix means you ma…

Buying your own customers is a very expensive way to increase sales...

Re: Ask HN: Where can I buy real software companies?

#145
post #117

Most businesses are for sale if the price is right. I've sold an app before where I just got a phone call from an interested party (without it being listed for sale anywhere), agreed on a price and just a few weeks later the transfer was complete. If anyone wants to buy candyjapan.com for 4x profit, feel free to contact.

Just to clarified, I'm very new at this world of selling and buying companies.

This is 4x the yearly profit?

Cause a user asked if it was 4x daily profit which is absurd to me imo.

edit:

Whoa that website is awesome, too bad I'm poor but the idea is awesome. I wonder if I can sell horrible fake American chocolate lol.

Re: Ask HN: Where can I buy real software companies?

#146
post #140

Earlier quoted context omitted.

Google search did't help, so I have to ask: What is a "FNAC app"? Thank you.

Fart Noise Amplification Chamber: http://www.urbandictionary.com/define.php?term=FNAC

I did not expect that!

Re: Ask HN: Where can I buy real software companies?

#147
post #8

I sold Bingo Card Creator through FEI ( http://feinternational.com ) and have nothing but good things to say about them. Something like 20% of their listings are SaaS businesses. The going rate for a SaaS business is roughly 3X yearly SDC ("seller discretionary cashflow" -- revenue minus costs required to run the business as opposed to e.g. the owner's salary, distributions, interest expense, etc). It is closer to 2X…

Why so little? It contrasts sharply with the valuations at which the startups (or even established companies, which no longer grow like crazy) are invested into at.

Why would i sell my business at 3x SDC (which, if it's a small one-person shop, probably just 15-20 months' worth of all 'take home money')? Only if was a 'crap business' as said, and i know it is heading straight into the ground and can somehow conceal it from the buyer.

Re: Ask HN: Where can I buy real software companies?

#149
post #8

I sold Bingo Card Creator through FEI ( http://feinternational.com ) and have nothing but good things to say about them. Something like 20% of their listings are SaaS businesses. The going rate for a SaaS business is roughly 3X yearly SDC ("seller discretionary cashflow" -- revenue minus costs required to run the business as opposed to e.g. the owner's salary, distributions, interest expense, etc). It is closer to 2X…

Why so little? It contrasts sharply with the valuations at which the startups (or even established companies, which no longer grow like crazy) are invested into at. Why would i sell my business at 3x SDC (which, if it's a small one-person shop, probably just 15-20 months' worth of all 'take home money')? Only if was a 'crap business' as said, and i know it is heading straight into the ground and can somehow conceal i…

3x SDC is the normal rate.

I've worked at a few companies where we've been sold to VCs and the like.

Anything more, and the risk of no recuperating the invested money is too great. (unless you find a sucker to dump it on, which is basically the current buisness model for most of silicon valley)

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