Looking for guidance in acquiring another microsaas company

searcher profile

January 03, 2022

by a searcher from University of North Carolina at Chapel Hill in San Francisco, CA, USA

I acquired a micro-saas company that had very little revenue (<$500 MRR) a couple of years ago that has done really well and since acquisition I've grown it ~20x just working on it part-time. It is continuing to grow and I expect it to reach 500k-1M ARR in 2-3 years.

I also recently spoke with another related micro-saas company that would be a great acquisition for us and help accelerate growth even further while giving me the necessary scale to hire full-time employees (right now I have a part-time developer and I invest a part of my time) and for me to do this full-time. This company has about 500k ARR and is in an adjacent market that I've been interested in expanding into and with the combined capabilities can really accelerate growth.

I know this is not a typical searchfunder model, but was hoping to get some insights from the folks here who have acquired or funded SaaS companies in the past. If I go through the acquisition path will also need to figure out funding as there is no collateral to take a loan on.

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commentor profile
Reply by a lender
from Universidad Carlos III de Madrid in Miami, Florida, EE. UU.
Hello.

We could help you with the whole process. Not only we can feed you with different saas opportunities, but we can also be a source of financing for the acquisition.
We will not ask for personal guarantees or a percentage of the acquisition.
If you are interested, we can jump in a call this week. redacted
commentor profile
Reply by a professional
from Bentley College in Miami, FL, USA
I've been following Xo Capital for a while and I think their blog could be helpful for you. They are a micro-SaaS PE fund that has acquired 5 businesses. They do a great job of documenting their journey. Check it out here: https://notes.xo.capital/
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