How to Sell Your SaaS Firm

How to achieve a 5x+ revenue multiple at sale -- and who you should hire to help you sell your SaaS firm

Author

Ryan Allis
October 29, 2024

Hi there,

In Q2 2024, across 731 tracked deals, the average SaaS M&A revenue multiple was 5.4x according to Software Equity Group.

That’s 5.4x TTM revenue.

But how do you achieve a 5x+ revenue multiple at sale – and who should you hire to help you sell your SaaS firm?

Here’s a handy slide covering some of the top marketplaces and investment banks that specialize in tech and SaaS M&A.

A handy guide to SaaS M&A marketplaces and investment banks

We talk about this topic of preparing to sell a lot inside the SaasRise community.

If you’re getting ready to sell your SaaS firm and you want some confidential guidance from someone who’s been through it (I sold my firm for $169M), you can reach out to us and set up a time to chat.

My team and I will help you position your firm pre-sale and select the right M&A advisors based on your ARR, growth rate, EBITDA, and sector. As a team of Harvard and Wharton MBAs with 20 year careers in SaaS, this is the work we love to do most!

We will help you position your firm pre-sale and select the right M&A advisors

If it’s getting close to time to sell you can reach out to us and set up a time to chat. We’ll give you free confidential advice on who to select for your M&A advisor, and offer our exit consulting services if helpful.

Free Video: How to Sell Your SaaS Firm 📈

Here’s a 23 minute free Loom video I recorded in August 2024 on how to sell your SaaS firm as part of the SaaS Growth Course (which all SaasRise members receive all 26 modules of in full as part of their membership). I hope it’s helpful!

If you like SaaS scaling and exit prep content like this and aren’t already a member, you can apply to join SaasRise here. We welcome all SaaS CEOs and Founders with at least $1M in ARR – especially those focused on growth and exit preparation. 

Finally today I’ll leave you with some nice charts from Software Equity Group’s Q2 2024 SaaS M&A research report. I recommend reading it in full!

See you next week with more great SaaS scaling and exit prep content!

Until then,
Ryan Allis, CEO & Founder
SaasRise
www.saasrise.com
The #1 Community for Experienced SaaS CEOs and Founders

About SaasRise Founder Ryan Allis

Ryan Allis is the founder of SaasRise, the community for experienced SaaS CEOs with $1M-$100M in ARR. He is a three time INC 500 CEO. He was previously CEO of iContact and grew the firm as founder/CEO to 70,000 customers, 1 million users, 300 employees, $50M per year in sales, and an exit for $169M to Vocus (NASDAQ:VOCS).

Since the sale of iContact, Ryan has been the CEO coach to high-growth SaaS firms including Instantly, Tatango, Seamless.ai, Revenue Accelerator, RXNT, RNL, Clearstream, YouCanBookMe, Retreaver, and many more.

He holds an MBA from Harvard Business School. He’s passionate about helping recurring revenue software companies grow and exit for $100M+.