Re:Show HN: I bought a SaaS and am modernizing it
by nathanstitt on Tuesday October 06, 2020 @09:20AM
(#24697371)
Definitely not millions, more like mid 10s :-D
A good rule of thumb for valuing a SaaS is to take trailing 12 months revenue and multiply by 2-5 depending on the growth potential of the the business.
In this case it was at the bottom end of that scale due to signups having slowed to a trickle.
I valued it a bit more since it has a huge list of past customers. My hope is that once the updates are completed I can convince at least some of the to resume subscribing by a tasty "6 month free" type offer.
A good rule of thumb for valuing a SaaS is to take trailing 12 months revenue and multiply by 2-5 depending on the growth potential of the the business.
In this case it was at the bottom end of that scale due to signups having slowed to a trickle.
I valued it a bit more since it has a huge list of past customers. My hope is that once the updates are completed I can convince at least some of the to resume subscribing by a tasty "6 month free" type offer.