Valuing a slower growth Saas business

by a searcher from Harvard University - Harvard Business School

3 years ago

I've got a Saas business that is growing only 15% per year. It's got rock solid EBITDA (~$2M on $5M in sales), but most valuation numbers for Saas businesses are for hyper growth businesses. How would you think about valuing it?

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investor from University of Pennsylvania - The Wharton School

Serial SaaS entrepreneur & investor - happy to chat - DM or --@----.com As Joseph said a lot depends on ARR size, retention rate, ARR % of total revenue, and TAM. And then depends on the technology stack (how much pure cloud vs on-prem). Lots of comp valuations for similar companies in lower middle-market PE - can talk more offline.

3 years ago | like reply | 1 like

searcher from Harvard University - Harvard Business School

This link walks you through an example of valuation a SaaS 'SlowCo' https://www.saas-capital.com/wp-content/uploads/2020/09/Whats-Your-SaaS-Company-Worth-Oct-2019.pdf

3 years ago | like reply | 0 likes

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