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Out of interest, how much capital would one roughly need to buy a 1K MRR? I'd assume the valuation would be some multiple of the revenue with some combination o
by Pandabob 6y ago
Out of interest, how much capital would one roughly need to buy a 1K MRR? I'd assume the valuation would be some multiple of the revenue with some combination of growth rate?
- awillen 6y agoIf you want to check out pricing on some low-revenue businesses, try Shopify's marketplace: https://exchangemarketplace.com/ https://exchangemarketplace.com/. Much more ecommerce than SaaS, and there's some crap in it, but it'll give you an idea of multiples (which are very low at that size).
- Pandabob 6y agoThanks this seems great!
- codegeek 6y agoFor very small businesses, I would generally not go beyond 2-3 years of multiple on revenue max. But there are many other factors. For example, how old is the business and what is the track record ? There is a big difference between doing 1K MRR for last 18 month vs even 3K MRR for last 2 months. I personally want to see at least 3 years of hard work. Anything less is too risky since the business hasn't gone through the ups and downs enough and frankly it is not enough grinding for me. But thats my criteria. There may be some gems out there that are younger and still worth a look. I have a lot of interest in the business buying/selling space and one day I will be doing this professionally :). For now, trying to grow my bootstrapped SAAS to 5 million in ARR.