Adrian Dayton, founder of Clearview Social, confirms CAC payback period metrics to Nathan Latka.
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“Absolutely. Yeah, less than six months.”
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More from Adrian Dayton
Disclosure
Dayton: Blind competing term sheet price drove a higher valuation and earnout
“And they didn't know all the terms. They just knew the price. Right. So, so they had much better terms and they bumped up the price and, you know, structured a two year earn out so that I could get all the money I wanted for the company.”
Adrian DaytonDec 1, 2022▶ 4:44How he sold his $2.3m SaaS with approx $500k EBITDA for $6m+ Cash
Disclosure
Dayton would consider a $6M all-cash buyout for Clearview Social
“That's probably in the ballpark of where I would be. I would listen to that.”
Adrian DaytonOct 27, 2020▶ 13:03ClearView Is HootSuite for Lawyers, Hits $2.3m Revenue, Would Look at Exiting for $6m
AssertionNot checkable as stated
Dayton: Clearview Social hit a TAM ceiling after dominating its niche
“We had a great product and we kind of hit up against a TAM problem. So the industry just wasn't that big and we'd eaten most of the market.”
Adrian DaytonDec 1, 2022▶ 2:56How he sold his $2.3m SaaS with approx $500k EBITDA for $6m+ Cash
Insight
Dayton: Startups under $1M EBITDA cannot rely on M&A bankers for exits
“Now, look, if my company had been a little bit bigger or we'd had, you know, been to a million in EBITDA, it would have been simple. We could have hired a banker. We could have done a full process. They could have shopped the product. But really like when you'…”
Adrian DaytonDec 1, 2022▶ 5:41How he sold his $2.3m SaaS with approx $500k EBITDA for $6m+ Cash
Disclosure
Dayton: Clearview Social sold at a 13x multiple on ~$500k EBITDA
“So our EBITDA is, Was between, let's just say between four and 700,000 dollars at the time of the sale. Okay. And the framework that we were bought under is 13 times EBITDA.”
Adrian DaytonDec 1, 2022▶ 7:30How he sold his $2.3m SaaS with approx $500k EBITDA for $6m+ Cash
Insight
Dayton: Private equity buys SaaS at 13x EBITDA to sell at 20x
“But this is also the private equity game is this kind of EBITDA arbitrage because if they can buy companies at 13 X, they put them all together into a bigger company and then they can sell them for 20 X.”
Adrian DaytonDec 1, 2022▶ 8:31How he sold his $2.3m SaaS with approx $500k EBITDA for $6m+ Cash
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