Are there any searchers here looking for SAAS companies?

September 17, 2024

by an intermediary in Miami, FL, USA

Hey Everyone,
Just wondering if there are searchers here looking for SAAS companies, and if so can you please clarify:

A. what makes a SAAS company a SAAS company vs a service company. For instance if it's a combination of tech and not tech how would you know what to classify it as?

B. For SAAS companies, are you looking at revenue multipliers (instead of profit multipliers)?

Thanks!

Reply by a lender
in Stuart, FL, USA

A SAAS company is where the technology actually provides the service or product that is being offered. A service company may have a service that could be backed heavily by technology, but that technology is not the actual item being sold. Both a SAAS company and a service company will most likely be sold off of a multiple on the profit or better termed sellers discretionary earnings SDE if the sales price is under 5 million.

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