Would you like to purchase yipgo.com? Feel free to email me.
needs more demo... the bubble screen shots should be clickable to see the whole thing.
Ask HN: Where can I buy real software companies?
51–60 of 171 posts
Re: Ask HN: Where can I buy real software companies?
#52Would you like to purchase yipgo.com? Feel free to email me.
Your business seems interesting. May I suggest you use HTTPS in your login/registration forms? SSL certificates can be as cheap as US$ 9/year and your users will feel more secure while using your site.
Re: Ask HN: Where can I buy real software companies?
#53I 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…
Could just be me but it feels like feinternational always show a very inflated price. 3x seems too much specially for companies that are barely 1 year old. Also, it is extremely difficult to sign an NDA just to inquire more about a sale as feinternational does not give any details upfront. Totally understandable that the company in question wants to maintain its privacy, secrets etc but this is a difficult situation.…
That's to protect the broker, not the company. They don't want you to bypass them.
Re: Ask HN: Where can I buy real software companies?
#54Earlier quoted context omitted.
I don't think that multiple is right - for a $500k rev software company, I wouldn't pay any more than 3x.
This 3x yearly earnings is mentioned quite often. But I can't believe anybody is selling for this. Maybe for 5x if you are in need of money. And in times of zero interest rates this 3x thing sounds even more unbelievable.
Well software isn't like a lot of businesses. A plumbing supply company will probably be just as successful in 3 years as it is now, but a software company might be worthless. Three years is a long time in software.
Re: Ask HN: Where can I buy real software companies?
#55Why are the answers here so coy? "Send me an email, we'll talk" Is it a secret to be shopping your website/product to a new management? Why?
Advertising your business is for sale may bring unwanted attention too.
Re: Ask HN: Where can I buy real software companies?
#56I 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…
Could just be me but it feels like feinternational always show a very inflated price. 3x seems too much specially for companies that are barely 1 year old. Also, it is extremely difficult to sign an NDA just to inquire more about a sale as feinternational does not give any details upfront. Totally understandable that the company in question wants to maintain its privacy, secrets etc but this is a difficult situation.…
3x doesn't seem bad at all. It's like an investment that generates 33.3% annually. After 3 years it's all free money.
Re: Ask HN: Where can I buy real software companies?
#57Earlier quoted context omitted.
Could just be me but it feels like feinternational always show a very inflated price. 3x seems too much specially for companies that are barely 1 year old. Also, it is extremely difficult to sign an NDA just to inquire more about a sale as feinternational does not give any details upfront. Totally understandable that the company in question wants to maintain its privacy, secrets etc but this is a difficult situation.…
3x doesn't seem bad at all. It's like an investment that generates 33.3% annually. After 3 years it's all free money.
While that's technically correct, with only 1 year of data behind it, it's arguably a bigger risk assuming that the first year of data will continue into the second year.
Re: Ask HN: Where can I buy real software companies?
#58ExitRound (http://exitround.com/)
Re: Ask HN: Where can I buy real software companies?
#59Re: Ask HN: Where can I buy real software companies?
#60Earlier quoted context omitted.
Could just be me but it feels like feinternational always show a very inflated price. 3x seems too much specially for companies that are barely 1 year old. Also, it is extremely difficult to sign an NDA just to inquire more about a sale as feinternational does not give any details upfront. Totally understandable that the company in question wants to maintain its privacy, secrets etc but this is a difficult situation.…
3x doesn't seem bad at all. It's like an investment that generates 33.3% annually. After 3 years it's all free money.
It's not free if you become an employee and need to put in time to maintain it. Think of it like a fast food franchise - you're buying a job, not a passive income stream.