Hutchison: 2-4 Year Old SaaS Averages 3x SDE Multiple on Flippa
Blake Hutchison · Flippa Gave Me $1.1m Valuation Based off $600m in Deal History Over 10 Years · Oct 1, 2020 · at 5:03
Flippa CEO Blake Hutchison discusses SaaS acquisition benchmarks and pricing multiples with host Nathan Latka.
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“What we're seeing on average is a three times net profit multiple or SDA multiple seller discretionary earnings on a SAS asset, which is between two and four years old.”
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“I don't think they should intentionally underprice. I think there's three, ah, there's three tips I would provide. One, be as transparent as possible, because you want bids to come in as soon as possible. If you leave too much to chance, you are slowing down t…”
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“We see around four and a half thousand listings a month on the platform across the collection of digital assets, and those digital assets are SaaS businesses, as if you, as you've alluded to so well, Nathan, and I know your community is very passionate about, …”