SaaS has been the dominant way to build and sell software for over a decade. Unlike traditional software, a SaaS business delivers software over the internet without the end user needing to download or install anything on their devices. They simply go to your website, log in and start using your software. Many entrepreneurs have embraced the power of SaaS to build a thriving business.
Whether you’re an aspiring entrepreneur or a seasoned operator, the allure of the SaaS model is undeniable due to a range of factors that we will discuss in this blog post. We will discuss why you should consider buying a SaaS business, give you ten options for where to find a SaaS business for sale and finish by giving you some tips to find a business that matches your needs.
If you’re considering buying an existing online-based business, a SaaS business is a fantastic choice for several reasons. Firstly, purchasing an established SaaS business means skipping the startup stage and jumping straight into the growth stage. You will inherit an established customer base, brand, and proven product.
Second, buying a SaaS business is a financially sound decision. The revenue it generates gives you growth capital to grow the business and can be used to help you seek outside investment if you wish to go down that track. Existing revenue streams can significantly reduce your risk and ensure you make a profit on your investment quicker.
Third, a SaaS business with a track record in the industry means receiving very valuable user information that can be used to refine and improve the product. This will also allow you to grow the business from day one.
Finally, taking on an established business means getting an established infrastructure that is in place to run the business. This might include employees, the software itself, and systems set up to track and manage the business. Having the infrastructure in place to run the business gives you options for how much involvement you want to take in the company’s day-to-day operations.
If you’re looking for a SaaS business to buy, there are many great marketplaces that you can join to find and then facilitate the purchase. To help you find the right marketplace or agency for your specific needs, we have compiled this list of the top 10 places to find SaaS businesses for sale.
Topping our list is Empire Flippers. The company operates the best curated online marketplace for buying and selling digital businesses. SaaS businesses are among the top types of businesses you can find on Empire Flippers.
Finding businesses to review is super easy. On their website, you can search for the business types and industries you’re interested in and use a range of filters to curate a shortlist of business opportunities. Once you find a business that meets your needs, you can ‘unlock’ a listing by joining Empire Flippers. As a member, you can then access comprehensive financial and analytical data, empowering you to authenticate the seller’s claims about their business meticulously. If your due diligence satisfies your questions about the business, the final step is to make an offer, and if accepted, a transfer of ownership can take place.
Thousands of entrepreneurs use Acquire.com to buy and sell digital businesses – including SaaS ventures. On the platform, you can find hundreds of pre-vetted opportunities to explore and access detailed information about each one to ensure you can do due diligence.
As a registered platform member, you can communicate and negotiate a sale with the buyer of any business you’re interested in acquiring. The company gives users hands-on advice to guide them through every transaction step, including helping to arrange financing. Acquire.com is a great place to start your search if you’re considering buying a SaaS business.
Flippa is another online marketplace designed for buying and selling web-based enterprises. To explore available businesses, visit Flippa’s website and search for SaaS businesses. You can then use various filters to narrow your search to find businesses that fit within your desired price range, industry type, customer numbers, etc.
Once you become a premium registered buyer or sign a non-disclosure agreement, you can access more in-depth information about the business, including financials and user data. As a buyer, you can then schedule a call with the seller to ask questions so you can do your due diligence. Flippa provides buyers and sellers with all the tools required to facilitate the sale and transfer of the business if both sides can reach an agreement.
Website Closers lists hundreds of SaaS businesses for sale from sellers across the world. The platform carries out rigorous vetting to ensure the accuracy of all listings.
Searching for SaaS businesses for sale is as simple as going to their website and entering your search criteria. From there, you can select listings that interest you can contact the business broker responsible for the listing. Once contact is made, you can ask questions and vet the business by viewing detailed financial and user information. If you’re happy with the information provided, the final steps are to negotiate a price and transfer ownership if an agreement can be reached.
FE International is a specialist mergers and acquisitions (M&A) advisory firm that works with buyers and sellers of technology businesses to negotiate successful transactions. On their website, the company lists all of the businesses they represent. If any businesses pique your interest, you can organize a consultation call with the listing agent and begin the negotiation process.
If you want to work more closely with a broker with experience in the digital business space, FE International might be the best place to find SaaS businesses for sale. Buying through a specialty M&A firm will provide you with more peace of mind and reduce the risk of the transaction running into any trouble.
BizBuySell is an established business marketplace. The platform has a wide range of businesses, from technology companies to local restaurants. Within the technology section, you will find several SaaS businesses for sale.
If any of those businesses match your criteria, you can ask for detailed information and communicate with the seller so you can undertake proper due diligence. If you can reach an agreement with the seller over the price and terms of the sale, you can complete the transaction through the platform and then take ownership of your new SaaS business.
BusinessesForSale.com is the next entry on our list of the best places to find SaaS businesses for sale. This marketplace lists thousands of businesses for sale in the United States – including many established SaaS businesses with a proven operating track record.
Once you find businesses on the platform that you’re interested in, you can securely communicate with the sellers to ask questions and request additional business records. Transactions can then be managed directly through the platform to ensure both parties can safely complete the transfer of ownership.
BusinessExits serves as a digital business brokerage to SaaS and other technology companies with revenues between two and sixty million annually. This makes them a good choice if you’re looking for a SaaS business with a very established customer base and proven business model.
All listings on the platform have been meticulously vetted to ensure the accuracy of the information provided by the seller. As a buyer, you will need to become a registered buyer and then sign a non-disclosure agreement to access this information. The company will work with you closely at every stage of the buying process to ensure everything goes smoothly. If you’ve got the budget to buy a high-revenue SaaS company, check out BusinessExits.
Quiet Light is an internet-based business brokerage firm focusing on technology businesses such as SaaS ventures. If you want to investigate purchasing one of the ventures they represent, you can work directly with one of their brokers to facilitate every part of the transaction. This provides buyers and sellers with a high level of service and reduces any risks with the process going wrong.
Quiet Light has hundreds of fully vetted ventures listed on its website, ranging in price from tens of thousands to millions of dollars. Regardless of your budget, you should be able to find a SaaS business that is a good fit for you to purchase.
Our final entry is Latona’s. This marketplace operates like many others on our list. You can go to their website and search for SaaS businesses for sale using various criteria like revenue, price, and profitability. This will give you a shortlist of opportunities to investigate further.
If any of the businesses listed on Latona’s fit your criteria, the next step is to begin the sale process with the buyer and the assigned broker. During this process, you can check all relevant business records and then make your offer. The transaction can be completed through the platform if the offer is accepted.
Buying a SaaS business is an excellent opportunity to start or grow your entrepreneurial journey. If you think you’re ready to take the next step and start looking for SaaS businesses to acquire, here are five tips to help make your journey more successful.
The first tip is to do extensive due diligence before purchasing a SaaS business. This will involve checking all financial, user, and website records and doing extensive market research. Make sure you consult outside experts if you need to, like accountants and experienced software engineers, to fill any knowledge gaps you have.
Identify your strengths and then look for a SaaS business that you can purchase and add value to. For example, if you have experience in digital marketing, look for SaaS businesses in the marketing industry. You can easily identify the value the SaaS tool offers users and find growth opportunities.
A successful SaaS business needs high-quality software and other underlying technology infrastructure to operate well. Before buying a SaaS business, check the technology is sound and performs well. If you’re not a software developer, hire an independent one to check the product. They will be able to find any flaws and map out the required maintenance and future development required for the product.
Analyze metrics like ARR, MRR, and churn rates to forecast the business trajectory. This will help you work out the growth potential of the business. You also need to assess the market size and study competitors to identify risks associated with the business. Before buying a SaaS business, you should have a plan with strategies to mitigate risks.
Some important legal and intellectual property (IP) considerations exist when buying a SaaS business. Make sure you review contracts, licenses, intellectual property rights, and any legal agreements associated with the business. This will ensure no legal issues could affect your ownership of the business. Getting the seller to sign a non-complete cause for a specified time is also a good idea.
Buying a SaaS business allows you to purchase an established business and skip out the startup stage. Instead, you can instantly start growing the business since it has a proven business model and technology stack. Thankfully, many great online marketplaces exist to find, research, and purchase SaaS businesses. Just ensure you do your due diligence to ensure the purchase goes smoothly and you find a business to which you can add value.