Where can I find a small SaaS business to buy?
Small SaaS businesses turn up on business-for-sale listing sites, through brokers, by approaching founders of products you already use, and in niche online communities. Whichever route you use, screen each one first for recurring revenue, customer churn and how much depends on the founder.
There is no single place where every small SaaS business is for sale. Many are never listed at all. The founder is quietly open to an offer, or has not thought about selling until someone asks. A sensible search uses several routes at once and keeps a short list of what you are looking for, so you can say no quickly.
Listing sites and brokers
Business-for-sale sites show software companies alongside other businesses, and some brokers focus on technology. A listing gives you a first look and a way to make contact. Read each site’s own terms and what it does or does not verify. A broker can explain a listing and speak for the seller, so ask whom they act for.
Founders and communities
Think about the tools you already use and respect. Founders of small products are often approachable, and a short, honest message about why you are interested can start a conversation. Niche forums and founder groups also post products for sale. Be careful with anyone who rushes you or will not share records before you sign a confidentiality agreement.
A first-pass screen
Before spending time, ask a few things. How much revenue repeats, and how much is one-off? How many customers leave, and why? What would break if the founder stepped away? Could you run the support and the code yourself, or hire for it? Answers will tell you whether to go on to full checks.
Once you have a target, see how to check a business’s online presence and who owns the code when you buy.
Related reading
11 pages on the same subject, grouped by topic.
Buying
Financing
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentLetter of intent and confidentiality agreement for a business acquisition: What clauses should be included?
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