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A comment on Ask HN: Where can I buy real software companies?. Parent comment

Re:Ask HN: Where can I buy real software companies? by hkmurakami on Friday May 22, 2015 @06:58PM (#9591280)
>The going rate for a SaaS business is roughly 3X yearly SDC ("seller discretionary cashflow" -- revenue minus costs required to run the business as opposed to e.g. the owner's salary, distributions, interest expense, etc).

Fascinating. I just messed around in Excel to see what the DCF discount rate would be, and it's exactly 25% discount to get to the 3x number.

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