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Why This $12M SaaS Might Be a Massive Broker Trick

4 snips
Aug 4, 2025
The hosts dive into a $12M listing for a self-storage SaaS that's raising eyebrows. They explore the blurred lines between genuine software services and marketing schemes. Engaging discussions reveal how brokers might inflate valuations with superficial tactics. A franchise expert adds insights into navigating the franchise world. They also analyze innovative business models in self-storage and highlight the coding implications of this SaaS product, revealing the need for careful evaluation in the tech landscape.
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INSIGHT

Confusing SaaS vs Marketing Revenue

  • The $12M self-storage SaaS listing appears more marketing-heavy than typical software businesses.
  • The distinction between SaaS and marketing services in the company is unclear and potentially misleading.
INSIGHT

Proprietary Software or Digital Agency?

  • Proprietary coding may relate only to pricing features alongside marketing services.
  • High employee count and blended services suggest this is not a pure SaaS company.
ADVICE

Caution on SaaS Valuation Multiples

  • Avoid valuing this business at 12 times cash flow without clear SaaS scalability.
  • Focus on cash flow multiples for safer valuation in ambiguous tech-service hybrids.
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