How do I value my SaaS business?

Faile Bashere · September 2018

Hi all,

I run a small and niche SaaS business in the IT/Cloud space. I've created the product in 2015 and have a few offshore devs helping maintain it. Currently, the product is generating around 380k/yr (back in March of 2015 it was at 0).

The revenue increase from 2017 thru 2018 is going to be flat and my energy to continue to market the product is waning. However, I have a good product and pretty low margins in order to run the business.

A potential competitor is approaching me with a request to purchase my product and hire me full time. Their primary interest is me and my product. They have the capability and intent to 10-50x the product.

How should I price my product?

saravanan · February 2019

This figure is the profit left to the business owner after the costs of all goods sold as well as critical operating expenses have been subtracted from gross income. Crucially, the owner’s salary can also be added back to the profit to reflect the true earnings power of the business.

How do I value my SaaS business?

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