4min chapter

This Week in Startups cover image

Tim Cook’s $50M pay cut, CEO compensation packages & Acquire.com's CEO Andrew Gazdecki | E1658

This Week in Startups

CHAPTER

How Much Do Bankers Charge When Selling a Business?

We focus primarily on profitable SaaS companies. On average, we see annual recurring revenue between four to seven X. If it's a really profitable company, we've seen multiples on profit from like six to eleven depends on the growth rate,. Is there a strong management team in place? There's a number of different factors that'll sway that multiple. So if you have a five million year bootstrap SaaS company, it's kicking off two million year in profit that'll get multiple offers within two weeks. And what would the multiple be on that? You have five million in top line revenue, two million public comps are trading at, you know, whatever five times it

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