So you wish to sell your SaaS business! Perhaps, you’re out of time to commit to your venture. Maybe, you found a better, more profitable business. No matter the reason, there are buyers looking to acquire your venture. All you should do is list your venture for sale on an ideal platform that brings sellers and buyers together. However, before you do that, you should take concerted steps to entice a buyer and land a favorable deal. So, how to make your SaaS business more attractive for acquisition?
Tips to make your SaaS business more appealing for acquisition
When you list your SaaS company for sale on a reputed platform, you’ll definitely land a buyer. However, you can’t be sure of a better deal. You need to present your business in such a manner that it looks profitable for the buyer. If a potential buyer doesn’t see any probability of growth and profits, he won’t buy your business. It’s that simple. Here’s a list of things you may want to do to enhance the value of your SaaS company.
Product life-cycle
Before listing your SaaS business for sale, have your product at its high point of development. In simple words, your product shouldn’t require any major updates soon. That gives the potential buyer some runaway ahead of major developments. It also provides the new owner some comfort that the vendor hasn’t given up on the venture and is passing over the thread at a time when the product demands care and attention.
Revenue model
Most of the SaaS businesses operate on a monthly subscription model, which offers predictable cash flow each month. Buyers are mostly interested in the revenue model of the business. They wish to make profits from their investment.
The better the revenue model, the higher the chances of acquisition. So, before you plan to sell off your business, increase the revenue of your business. Also, make suitable changes that will yield better profits in the future. A little bit of labor on your end will get you a higher sale price.
Growth potential
Any potential buyer would want to own a business model that has immense growth potential. So, see to it that your existing business has the potency to grow and flourish amidst competition and changes. Make a thorough, unbiased assessment of your venture. Do you think that your venture will deliver profits to the new owner? Can your business model survive in the long run?
If yes, you’re better off listing your business right away. If no, you may want to expend time on these things. Upgrade your software, make changes in your service, and assure that your business trends modestly upward.
Popularity of your brand
A stand-alone, popular brand is more likely to be considered by a potential buyer. It helps if you’ve put in dedicated efforts into generating good brand recognition. Are you generating enough engagements on social sites? Is your SaaS model featured on the right media outlets? Consider strategies that generate substantial brand recognition in such a way that the potential owner could easily pick up.
Closing words
The selling process of your SaaS venture starts way ahead of your listing in the market. Consider the viewpoint of your buyer and figure out how to make your SaaS business more attractive for acquisition. With simple tweaks and amendments, you can easily find a more profitable deal in a lot less time.
