You’ve put blood, sweat, and tears into building your micro SaaS startup. Now you’re ready to reap the rewards of an exit. But where do you start? Selling a business can be daunting, especially when it’s your baby.
This article breaks down the key steps you need to take for a successful micro SaaS exit and the top 8 micro SaaS for sale platforms for selling your micro saas startup. You’ll learn how to:
- Prepare your startup both financially and operationally
- Research potential buyers and exit strategies
- Identify the top 8 platforms to sell your business
- Negotiate key terms to close the deal
By the end of this article, you’ll have a comprehensive understanding of the key considerations and best practices for a successful exit.
But before that, I want to talk about why would you even sell your micro saas, especially if it’s making money.
Why Consider Selling Your Micro-SaaS?
There are several reasons why you might consider selling your micro SaaS. Here are a few key ones:
- Burnout and lack of inspiration: If you’re feeling tired of managing your current business and are seeking new challenges, it may be time to sell. This can help you regain your passion and creativity and focus on new ventures that excite you.
- New opportunities: You may have exciting ideas for new ventures that require your full attention and resources. Selling your micro SaaS can free up your time and resources to pursue these new opportunities.
- Instant cash flow: Receiving the total projected revenue for the next few years in one lump sum can provide a significant financial boost. This can allow you to pursue other opportunities or enjoy the fruits of your labour.
Once you’ve decided that selling your micro SaaS is the right decision, it’s important to navigate the process carefully to ensure a successful exit.
Getting Micro SaaS for Sale Ready
Before listing your startup for sale, you need to make sure it’s in prime condition. This involves financial, product, and team prep.
Clean Up Your Books with Financial Due Diligence
Buyers will scrutinize your financials to validate your startup’s worth. Organize bookkeeping records and have past financial statements audited. Demonstrate consistent, optimized revenues to showcase healthy finances.
Build an Irresistible Product
A strong product makes for an appealing acquisition target. Evaluate user feedback to identify areas for improvement: release product updates and new features leading up to the sale. Highlight product roadmap items the buyer can implement post-exit.
Ensure Team Readiness for a Smooth Transition
Work with your team to assess readiness for a sale. Document internal processes and IP to ease the transition. Have employees sign retention contracts and non-competes. Offer bonuses for staying on post-acquisition.
By checking these preparation boxes, you’ll avoid hiccups that can tank a deal. Now let’s explore finding the right buyer.
Researching Micro SaaS Buyers and Exit Strategies
Casting a wide net when researching possible buyers and exit strategies will help you locate the best fit.
Vet Acquirers Versus Investors as Prospective Buyers
Strategic acquirers have complementary products and can leverage your customer base. Financial investors buy purely for returns. Weigh the pros and cons of each when selecting buyers.
Consider M&A, IPOs, and Other Routes to Exit
Understand different exit strategy options, from mergers and acquisitions (M&A) to initial public offerings (IPOs). Look beyond buyers to explore investors like private equity firms or venture capitalists.
Thorough buyer and exit strategy research gives you leverage when dealmaking. Next, we’ll uncover places to connect with interested buyers.
Top 8 Platforms to Sell Your Micro SaaS Business
The sites below cater specifically to micro SaaS startups. They provide access to active buyers eager to purchase businesses like yours.
Transferslot
A curated marketplace matching side project owners with pre-vetted buyers. The simple sale process makes Transferslot a top platform.
Acquire.com
Cuts through acquisition noise by connecting you with interested buyers in 30 days. Great for quickly gauging buyer interest.
IndieMaker
IndieMaker’s 1000+ members create a bustling marketplace for side projects and micro SaaS. Easy signup and strong community.
SideProjectors
SideProjectors fosters an active community buying and selling side projects. Developers especially love this platform.
Borderline
Buyers and sellers unite at Borderline regardless of project size or profit. Low barriers to listing your startup here.
Flippa
A general online business marketplace where micro SaaS gets exposure alongside other sites for sale.
Tiny Acquisitions
You can buy and sell your micro saas for $100k or less.
Acquirebase
A platform for buying or selling software businesses with expert guidance, vetting, marketing services, and a free listing option or premium yearly/lifetime plans.
Sealing the Micro SaaS Sale with Savvy Negotiations
Once you’ve connected with prospective buyers, it’s time to hammer out a deal. Pay attention to these key areas when negotiating:
Nail Down Price and Terms
Haggle overvaluation and payment structures (like earn-outs). Get creative but don’t leave money on the table. Consult experts to estimate pricing if needed.
Mind the Legalities
Navigate regulations around selling businesses, like due diligence and disclosures. Work with a lawyer to account for legal technicalities.
Plan the Transition
Hash out timelines for integration, transferring assets/accounts, training, etc. Make a transition roadmap both parties stick to.
Staying firm, friendly, and organized during negotiations will help you reach an agreement that checks all of your boxes.
How Much Money Can You Sell Your Micro-SaaS For?
If your micro-SaaS revenues are between $2k-$20k in MRR, expect somewhere between 1x to 5x ARR as your potential exit number.
If your micro-SaaS business generates between $2k and $20k in monthly recurring revenue (MRR), you can expect to sell it for somewhere between 1x and 5x annual recurring revenue (ARR). This is a good rule of thumb, but the actual value of your business will depend on a number of factors, including:
- Growth rate: A business that is growing rapidly is more valuable than one that is stagnant or declining.
- Profitability: A profitable business is more valuable than one that is not.
- Customer churn rate: A business with a low customer churn rate is more valuable than one with a high churn rate.
- Recurring revenue: A business with a high percentage of recurring revenue is more valuable than one with a low percentage of recurring revenue.
- Market demand: A business that operates in a high-demand market is more valuable than one that operates in a low-demand market.
- Competition: A business that has little competition is more valuable than one that has a lot of competition.
If you are thinking about selling your micro-SaaS business, it is important to get a professional valuation. This will help you to set a realistic asking price and to avoid leaving money on the table.
Conclusion
Selling your micro SaaS can be a rewarding exit strategy, allowing you to reap the returns from your hard work while opening new doors. By prepping your startup for sale and leveraging the right platforms to connect with buyers, you can make the process smooth and lucrative.
Assess your motivations and ensure selling is the best path forward. Then get your finances organized, polish your product, and transition your team. With these ducks in a row, turn to marketplaces like Transferslot, Acquire.com, and SideProjectors that specialize in micro SaaS sales. Mind pricing, legalities, and integration plans during negotiations to close on an ideal deal.
While saying goodbye is bittersweet, selling frees you up to chase new ideas or take a well-deserved break. And you’ll walk away with a life-changing payout reflecting all your late nights and early mornings building that startup from the ground up. The micro SaaS journey doesn’t have to end here. But as you open this next chapter, enjoy the fruits of your success knowing your baby is in good hands.
If you enjoyed reading this, you should check out: How to Validate Your Micro SaaS Idea & Launch Quickly
