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…
Ask HN: Where can I buy real software companies?
61–70 of 171 posts
Re: Ask HN: Where can I buy real software companies?
#62Earlier 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.…
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?
#63Would 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?
#64Re: Ask HN: Where can I buy real software companies?
#65Would 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.
Re: Ask HN: Where can I buy real software companies?
#66I 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.…
Re: Ask HN: Where can I buy real software companies?
#67Re: Ask HN: Where can I buy real software companies?
#68Earlier quoted context omitted.
I don't know why you are downvoted. The $500k/year business does , conservatively, cost $2-3 million (using the common "5x the yearly revenue" formula).
Valuing companies based on revenues is a bit of a stretch in my mind. Actual income/earnings/cashflow makes a lot more sense. If you don't take into account expenses then you get some really wacky valuations: ie a company is in the business of selling houses (or other large cost item) for a small percentage higher than they bought them. If you don't take into account the cost of buying the house and running the busin…
Re: Ask HN: Where can I buy real software companies?
#69I would like to sell my business. You'll need to know C++ and care about the Windows desktop market. I get about 8K downloads every month. I want $225K which is 5x revenue. I don't know if I'm entirely serious. It just makes money and I don't work it properly. It should make $90K-$110K if someone cared about it.
Re: Ask HN: Where can I buy real software companies?
#70Earlier 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.…
That's to protect the broker, not the company. They don't want you to bypass them.