Seeking Equity Investors for Down Payment on $450K No-Code SaaS Platform

September 30, 2024

by a searcher from University of Washington in Seattle, WA, USA

I am looking to acquire a no-code platform that empowers businesses to seamlessly convert their websites into mobile apps and to facilitate this acquisition, I am seeking investment in exchange for equity to cover a down payment of 10-20% on an asking price of $450,000 (currently at a 4.3x profit multiple), while actively negotiating to lower the multiple to 3x profit.

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Reply by a searcher
from Florida International University in Miami, FL, USA

The Value of Experienced Buy-Side Advisory: My Experience with RKJ Partners After over a year of working with Cyril Jones https://searchfunder.com/profile/cyril-jones at RKJ Partners, I wanted to share my experience with the SearchFunder community. Whether you're a self-funded searcher, running a search fund, or operating as an independent sponsor, having the right buy-side advisor can make the difference between a successful acquisition and a costly mistake. Why Buy-Side Advisory Matters The acquisition process is filled with complexities that aren't immediately apparent to first-time buyers. What seems straightforward on the surface find a business, negotiate a deal, close the transaction quickly reveals layers of legal, financial, and operational considerations that can derail even the most promising opportunities. My Experience with RKJ Partners Working with Cyril Jones has been transformational for my acquisition efforts. His decades of experience shine through in every interaction, from initial target evaluation through closing and beyond. What I've found most valuable: Strategic Guidance: Cyril doesn't just review deals; he helps shape your entire acquisition strategy. His ability to spot potential issues early has saved me from pursuing deals that looked attractive on the surface but had fundamental flaws. Process Management: The acquisition process involves coordinating multiple parties lawyers, accountants, lenders, sellers, and brokers. Cyril's experience managing these relationships and keeping deals on track has been invaluable. Risk Identification: This is where experience really pays dividends. Cyril consistently identifies roadblocks and potential landmines that I would have missed. His pattern recognition from years of deals helps anticipate problems before they become deal-killers. Negotiation Support: Having someone with his track record in your corner during negotiations provides confidence and credibility that benefits the entire process. The Peace of Mind Factor There's an intangible but crucial benefit to working with someone of Cyril's caliber: peace of mind. Knowing that decades of experience are being applied to evaluate every aspect of your deal allows you to focus on the strategic elements while trusting that the tactical execution is in expert hands. The acquisition process is stressful enough without wondering if you're missing something critical. Having that experienced perspective reviewing your approach, your deals, and your decisions has been the best investment I've made in my search process. For Different Buyer Types Whether you're: Self-funded searchers who need guidance on deal sourcing and evaluation Search fund entrepreneurs managing investor expectations while executing deals Independent sponsors looking to add value for your capital partners The common thread is that buy-side advisory from someone with real experience pays for itself many times over. Final Thoughts After a year of working together, I can confidently say that engaging RKJ Partners was the best decision I made in my acquisition journey. The combination of strategic insight, tactical expertise, and genuine partnership has elevated every aspect of my search process. For anyone considering whether to engage buy side advisory, my advice is simple: the cost of good advice is nothing compared to the cost of a bad deal. Having Cyril Jones and RKJ Partners in your corner provides that crucial margin of safety that can make the difference between success and failure in your acquisition efforts. Have others worked with buy-side advisors in their search process? Would love to hear about your experiences in the comments.

Reply by a searcher
in Seattle, WA, USA

This describes quite a large percentage of mobile apps - a great many of them are just a wrapper around the mobile version of a website. The main benefit of the wrapper is siphoning device data off for monetization. The question here being whether you're getting ripped off - there are many tool kits and services to do this for both Android and iOS, some are even free.

Are you buying one of the actual tools, (i.e. you own that IP and can extend/expand to fend off the many competitors out there)? Or are you buying somebody's implementation of one of those tools, (no IP other than their interface for it and no defense against competitors)...?

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