Amazing SaaS Tips for Buyers and Sellers

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Today the newest member of the Quiet Light team, David Newell, joins us to discuss the four pillars for buyers and sellers, particularly when they apply to SaaS businesses. David knows SaaS super well and covers all the metrics that buyers and sellers need to pay attention to on both sides of the acquisition process. We discuss everything he looks for when listing a SaaS business, the challenges in measuring some of those metrics, and some common SaaS buyer pitfalls.

David started his career in investment banking and worked in that environment for four years. Looking for a taste of life on the outside, he started brokering online, eventually working his way through the ropes to a head broker role. David is now a successful entrepreneur in his own right, with a brand in self-discovery and personal development which has grown from a podcast to a full online brand. Inner Truth offers a wealth of courses, community, and content for anyone embarking on a journey of self-truth. We’re very pleased to welcome David to the Quiet Light team.

Episode Highlights:

  • David takes us through his background and the SaaS business floodgate that opened for him as he learned about this niche and began brokering SaaS deals.
  • The top three things David feels are important to hone in on to add value to a business.
  • What churn is, how it’s calculated, and why it’s a cornerstone to a SaaS business.
  • The difference between MRR and ARR and how each can affect the revenue profile of your business.
  • David’s software recommendations for measuring the metrics he looks at in a SaaS business.
  • We get into what micro SaaS is and how it differs from the traditional SaaS model.
  • Potential pitfalls of owning a SaaS business and the challenges to consider when getting into the SaaS acquisition arena.
  • Tips and advice for folks preparing to sell their SaaS business.
  • Compelling acquisition tips on how to do the good work before getting ready to sell.

Transcription

Mark: Joe we are quickly being outnumbered here at Quiet Light Brokerage. We just hired on somebody else who hails from the UK.

Joe: Yes; David Newall, a fantastic guy, and another Brit. I guess Brian’s not a Brit he’s a—

Mark: What is he?

Joe: He’s Estonian, that’s what he is.

Mark: Yeah but he’s kind of an international mutt when we would think about it. He’s Estonian but he lives in the UK sometimes but now he’s looking at living who knows where.

Joe: Well, he’s a true entrepreneur. He’s been living all over the world with his wife for the last 12 months. And we just got together at the Prosper Show last week with both David and Brian and Brian’s wife; a first time we’ve met a Quiet Light spouse right? First time you’ve met … you’ve owned this company for almost 11 years and you’ve never met a spouse until last week.

Mark: Over 12 years. I mean talk about the age of the modern company right? We are a distributed company. Everybody lives in different states and when we see each other it’s at conferences. So it’s pretty rare for me … very rare being that this is the first time ever that I met a Quiet Light spouse. And I think the only reason that I did is because Brian and his wife don’t actually have a home that they go to.

Joe: That’s right.

Mark: I mean obviously they have places where they live but they’re constantly on the move which is fun but I’d like to meet more of the spouses.

Joe: I’m with you. Yeah, they were in Vegas and then they were

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