For years, you’ve been told by brokers and intermediaries what multiples are fair for startup acquisitions.
Today, we’d like to share with you @microacquire's 2021 analysis of acquisition multiples in the first of our biannual multiple reports.
Details below. Let's dig in.
Today, we’d like to share with you @microacquire's 2021 analysis of acquisition multiples in the first of our biannual multiple reports.
Details below. Let's dig in.
@microacquire A Disclaimer on the Data
We’ve created this report using anonymized, customer-generated data. We don’t participate in acquisition transactions, so the actual multiple ranges could be higher or lower but the multiples will give you a sense of what is getting @microacquire'd.
We’ve created this report using anonymized, customer-generated data. We don’t participate in acquisition transactions, so the actual multiple ranges could be higher or lower but the multiples will give you a sense of what is getting @microacquire'd.
Pre-Revenue Startups
We usually don’t list pre-revenue startups as they’re difficult to price but on average these startups get acquired for $12,695.
We usually don’t list pre-revenue startups as they’re difficult to price but on average these startups get acquired for $12,695.
MicroSaaS (Revenue Multiple)
Multiples don’t matter much for MicroSaaS either. These companies are little more than MVPs or acqui-hires (an acquisition of people, not a company).
Profit and revenue are so small that the multiples go wild – as much as 300x in one case.
Multiples don’t matter much for MicroSaaS either. These companies are little more than MVPs or acqui-hires (an acquisition of people, not a company).
Profit and revenue are so small that the multiples go wild – as much as 300x in one case.
SaaS (Revenue Multiples)
@microacquire is the ideal marketplace for selling SaaS startups, especially if they’re growing, profitable, and easy to market (with a clear use case).
@microacquire is the ideal marketplace for selling SaaS startups, especially if they’re growing, profitable, and easy to market (with a clear use case).
SaaS (Profit Multiples)
Buyers love SaaS because it’s a simple, consistent business model: recurring revenue, fewer overheads, and no inventory to manage.
Buyers love SaaS because it’s a simple, consistent business model: recurring revenue, fewer overheads, and no inventory to manage.
Ecommerce (Revenue Multiples)
Similar to SaaS, ecommerce startups sell quickly on @microacquire. It’s a fast-growing sector that the pandemic has accelerated.
Similar to SaaS, ecommerce startups sell quickly on @microacquire. It’s a fast-growing sector that the pandemic has accelerated.
Ecommerce (Profit Multiples)
The profit multiples, on the other hand, are comparable to those of SaaS which might simply be because the margins are thinner.
The profit multiples, on the other hand, are comparable to those of SaaS which might simply be because the margins are thinner.
Shopify SaaS (Revenue Multiple)
Shopify SaaS is a special case because it’s SaaS within a specific commercial framework (Shopify) that is itself part of the wider ecommerce market.
Shopify SaaS is a special case because it’s SaaS within a specific commercial framework (Shopify) that is itself part of the wider ecommerce market.
Marketplace (Revenue Multiple)
Smaller marketplaces (under $100k) are more frequently priced on the value of the code and assets. Bigger marketplaces may have achieved enough revenue to be valued directly on that metric.
Smaller marketplaces (under $100k) are more frequently priced on the value of the code and assets. Bigger marketplaces may have achieved enough revenue to be valued directly on that metric.
Agency (Revenue Multiple)
Buyers likely see the average multiple of 0.8x as good value: They get more revenue for their dollars but have to work hard to continue delivering and growing that revenue.
Buyers likely see the average multiple of 0.8x as good value: They get more revenue for their dollars but have to work hard to continue delivering and growing that revenue.
What You Should Take Away from This Report
It’s not gospel, of course, but a guide. Identify where your startup fits along the spectrum and then consider using this information to position your company most effectively to reflect your unique nuances.
It’s not gospel, of course, but a guide. Identify where your startup fits along the spectrum and then consider using this information to position your company most effectively to reflect your unique nuances.
Remember: valuations can be abstract. Profit and revenue indicate how well your startup’s doing but don’t always tell the whole story. It’s up to you to convince buyers of the value of your business.
If you stick within these multiples, I expect you’ll do very well on @microacquire. Buyers tell us that realistic asking prices start conversations off on the right foot, and we agree.
Finally, this report and its data are not intended to provide legal, financial, or any other professional advice. We compiled this data and this report for informational purposes only to help you decide on how to most effectively use our platform.
Check out the full report here. resources.microacquire.com/microacquire-b…
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