How much would your software business sell for? In this episode, I interview Kevin McArdle, CEO and co-founder @ SureSwift Capital, on what a life-changing payday looks like for a SaaS founder.
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How do you sell your SaaS?
I mean… how does that process actually look, end to end, from meeting a buyer to pocketing a 7+ figure paycheck?
Buying and selling a business isn’t like walking into a store, picking an item off the shelf and approaching the counter.
There are valuations, due diligence, escrow accounts, handover processes, and more… before the massive paychecks can get cashed.
It’s quite a process.
I’ve sold 3 of my own companies, I’m an investor in 40+ other companies, and as a business coach, I’ve helped clients through many sales and handovers.
So I know how it works.
But I’ve still got nothing on Kevin McArdle.
Kevin is the CEO and co-founder of SureSwift Capital and in the past 4 years…
…he bought 34 companies.
No, not invested. Bought. Outright.
Kevin mostly buys bootstrapped B2B SaaS companies, small teams of a founder/ developer with about 3 – 5 contractors whose business makes $25 – $100k MRR.
In other words, he’s the perfect buyer for a small software founder that wants to cash out.
I sat down with Kevin in the latest episode of the Escape Velocity Podcast and quizzed him on everything about buying and selling businesses.
If you’ve ever wanted to ask a SaaS buyer exactly how they think about buying, then this is THE interview you need to hear.
You’ll get answers to:
– How much a SaaS will sell for
– What’s an attractive profit margin for a seller
– Why SaaS founders sell (it’s not always for the cash)
– What an end-to-end sales process looks like
– What a buyer is looking for
– What terms you can expect in a sales agreement
– The different stages of a handover
– How SureSwift capital grow their businesses after purchase
– How Kevin and his team started their company from scratch
I’m so lucky to interview people like Kevin.
This guy has a wealth of knowledge and was incredibly generous with his answers, sharing revenue figures, percentages, business names, and more.
I’ve met a lot of business people who like to hold their cards close to their chest.
If anything, I think this interview will show you that there ARE buyers looking for small SaaS companies of only 5 people and they are willing to pay millions for it.
You might be closer to selling than you thought.
Check out the episode here and leave a comment thanking Kevin for his time – I’ll make sure he reads them.
Dan “planning your exit route” Martell
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ABOUT DAN MARTELL
“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one… not two… but three tech businesses: Clarity.fm, Spheric and Flowtown.
You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.
An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.