Selling $15M - $150M Saas Companies & Negotiations with Diamond Innabi

How much do software businesses sell for in the seven, eight, or even nine-figure range? This episode of the Buying Online Businesses Podcast dives into what it takes to sell or buy a SaaS company.

Host Jaryd Krause speaks with Diamond Innabi, an expert in buying and selling software businesses. With over 10 years of experience, she has helped close successful deals in industries like energy, government, education, real estate, and technology.

Diamond understands the challenges that come with selling a software company, from making sure sellers get full credit for their recurring revenue to explaining complex technology to buyers. She also knows how to position businesses with high customer concentration and other tricky factors in a way that attracts the right buyers.

In this episode, listeners will learn:

✅ How long it takes to prepare a business for sale (sometimes up to two years!)
✅ What needs to happen before a business is ready to sell
✅ How software companies in the $15M - $150M range are valued
✅ The biggest mistakes that cause deals to fall apart—and how to avoid them
✅ Key negotiation strategies to get the best deal
✅ How to assess a business’s strengths and weaknesses before making an offer

Since joining SCG in 2014, Diamond has helped grow the team, mentor new investment bankers, and improve processes that lead to better deals. She has a strong track record of getting results and often helps clients secure deals beyond their expectations.

Tune in now to discover what it takes to successfully buy or sell a SaaS company. 🚀

Episode Highlights

02:50 Diamond’s journey to becoming an M&A Advisor

08:00 How has selling businesses changed over the years?

17:30 How to cut down the time frame of the deal?

27:00 How to prepare for negotiating a deal?

37:00 Where to find Diamond?

Key Takeaways

➥ SaaS companies typically sell for high single-digit to low double-digit multiples of ARR. Top-tier companies with low churn, strong growth, and profitability can command 15X to 20X multiples.

➥ Viewing the deal as a strategic choice rather than a necessity leads to stronger negotiation outcomes.

➥ When dealing with numerous interested parties, balancing attention and maintaining competitive tension is crucial.

About The Guest

Diamond Innabi has 10 years of middle-market M&A experience managing successful deals in a wide variety of product categories and industry verticals, including energy, government, higher education, real estate, supply chain technology, and workplace and facility management.

Every deal brings unique challenges, including ensuring the seller is getting proper credit for recurring revenue and accurately presenting opportunities at a fast-growing company.

She has a keen understanding of how to properly position companies with challenges such as high customer concentration and complex technology that requires additional education for interested buyers.

Diamond is also a skilled negotiator who frequently achieves deals that exceed her clients’ expectations. Since joining SEG in 2014, she has been instrumental to growing the team, serving as a mentor to analysts and aspiring investment bankers and developing process improvements that contribute to client success.

Connect with Diamond Innabi 

➥ https://softwareequity.com/research/quarterly-saas-report

➥ https://softwareequity.com/saas-scorecard

➥ https://www.linkedin.com/in/diamondinnabi/ 

Resource Links

➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/

➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com

➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/

➥ Site Ground (Website Hosting) - https://bit.ly/3JBEC1u

➥ Surfer SEO (SEO tool for content writing) - https://bit.ly/3WWMKjM

➥ Convert Kit (Email Software Provider) - https://bit.ly/3o10Xgx

🔥Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥

➥ Empire Flippers - https://bit.ly/3RtyMkE

➥ Flippa - https://bit.ly/3wGa8r5

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