Saas Company With 750,000 Active Users

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09/09/2020 Redacted Redacted

searcher Columbia University - Columbia Business School Rutgers-The State University of New Jersey-Newark/New Brunswick - Rutgers Business School

SAAS COMPANY WITH 750,000 ACTIVE USERS

Currently looking at acquiring a SaaS company. What is the typical multiple and margins for this type of business?

This platform makes file sharing and storage easy and straightforward.
The encrypted cloud storage uses the latest security techniques to keep your data safe and protected at all times. Create a link to share files for free, or automatically sync.
This Platform has grown organically over the last 4 years with peaks of 25m page views per month and 750,000 registered users. Currently averaging 2m page views per month.

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searcher Stanford University - Graduate School of Business Angelo State University Texas A&M University - 09/09/2020

Hi, this is a tough one to answer re: multiples without a bit more info. Is there any revenue, or is it a straight-up free license? B2B or B2C?

SaaS multiples are all over the place (but generally very strong) depending on factors like scale, net/gross $/logo retention, profitability, CAC/LTV, and probably most importantly, growth trends...you will generally see gross margins > 90%, but that depends how much expense is assigned to Cost of Revenue/COGS...happy to help if you need more input. [redacted]

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professional The Queen's University Belfast - 09/09/2020

Hi, granted this is off topic, but I just wanted to remind you to review/assess their Cloud, SDLC, and Corporate IT Security policy and procedures; plus, if they have done a Risk Assessment recently. Cheers!

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searcher Lafayette College - 09/09/2020

Multiples are all over the place depending on gross margin, growth rates, retention rates, churn, and so on. So tough to give one-size-fits-all advice here.

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searcher - 09/10/2020

I'd be happy to talk to you about this business niche. We sold a portfolio of file transfer sites a few years ago. Please feel free to reach out at [redacted]

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searcher - 09/12/2020

Registered users may not mean anything, and may actually cost money, you need to look at paying customers. Multiples for SaaS are all over the map but typically start at 3x

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searcher Texas A&M University - 01/20/2021

3x referring to ARR correct? Or are you referring to EBITDA here? I just sent an offer for 2.8x ARR which roughly translated to 5x EBITDA.

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searcher The University of Rhode Island - College of Business Administration The Catholic University of America - 12/07/2020

To Jonathan's post, enterpriseready.io is useful to address the basics

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professional The Queen's University Belfast - 01/04/2021

thanks for sharing enterpriseready.io - very interesting!

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searcher Miami University of Ohio University of Illinois - 01/20/2021

SaaS is tough as mentioned by everyone above. So many variables and the range is way bigger than other SMB's since market is bigger. We would be happy to help you with any tech DD, or post close technical development email me at [redacted]

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