Multiples for small companies are not insane but there are some real challenges with this. First, it’s like buying the perfect used car. The people who take th

Multiples for small companies are not insane but there are some real challenges with this. First, it’s like buying the perfect used car. The people who take the most care and build the best thing are likely in it for the long haul. If an entrepreneur thinks they have something great, in SaaS the math almost always works to just hold on for one more year and likely double their equity value. Second, buying 3000 euros of profit a month is going to cost at least 100-150k euros. You need that liquid. That’s not common. So it’s a bit glib to say “why not just buy the business”. When real win/win small company buying occurs it’s often because the acquirer has a structural advantage (existing customer base or audience, ability to amortize costs across a portfolio, wizard at marketing etc) that allows them to unlock substantially more value than the original creator. Again, this is not common. Yes, building something is hard work but it’s rewarding and can be quite profitable.