Thread by @ThomasSmale

Our average SaaS multiples are:

4.0x-6.0x for businesses under $2M
6.0x-10.0x for businesses over $2M

Want to know what it takes to increase your multiple?

Do these 5 things:

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1. Documentation: maintain clear and complete financial records. Hire a professional to help you from day one.

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2. Operating procedures: anyone should be able to look at your standard operating procedures (SOPs) and know how to run your business.

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3. Vital metrics: track MRR, revenue churn, LTV, CAC, and any other data that is vital to the success of your business.

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4. Outsourcing: hiring helps your business run more efficiently, decreases your day-to-day involvement (hello freedom), and looks incredibly attractive to buyers.

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5. Well-timed feature releases: if you are less than 6 months away from an exit, you should wait to release new product features to use them as leverage toward a swifter sale. There won't be enough data on their efficacy to measure their success.

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Remember:

You have more control over your multiple than you realize.

Find the link below to learn more.

loom.ly/EddCN9c
#SaaS #founder