127: SaaS Businesses – Valuing, Investing, and Exiting with Dustin Struckman - a podcast by Sam Marks & Johnny FD
from 2019-08-28T15:45:10
Dustin Struckman is one of the founding Partners at Digital Acquisitions. Having sold several of his own businesses through his business partners previous brokerage, they decided to found Digital Acquisitions in 2016 in order to provide exit services to an underserved market segment. They are now one of the leading web-based business brokerages in the world.
During this episode, Dustin will share how to value, exit, and invest successfully in a SaaS business. Learn about the typical deal structures and digital acquisitions including Sam and Johnny FD’s experience selling their business. Listen to the end to find out of investing in a SaaS business is right for you.
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Links:
- Digitalacquisitions.co
- Dustin’s Business valuation/seller consultation
- Download their buyer’s guidelines course
Discussed:
- Diversyfund.com - Use coupon code BOSS20
- ILAB 10 – Empire Flipper’s CEO: Investing in profitable, cash flow websites
Where we are:
- Johnny FD - Tbilisi, Georgia
- Sam Marks - South Carolina, USA
- Dustin Struckman - West Seattle
Time Stamps:
- 03:34 - SaaS options that we personally use, today
- 05:30 - Backing and introduction into the SaaS business market
- 09:00 - How to value a SaaS business
- 16:08 - Building the value of tech into a SaaS business
- 16:58 - “The tech just comes along for the ride. That’s why SaaS businesses get a higher multiple.” - Dustin Struckman
- 20:20 - Comparing SaaS, eCommerce, blogs, and content site valuations
- 23:44 - “Things like SEO don’t necessarily increase or decrease the value of the business. What they do is increase or decrease the sellability of the business.” - Dustin Struckman
- 30:25 - Typical deal structure and digital acquisitions
- 37:24 - Selling Johnny FD’s first online business
- 40:02 - Selling Sam’s SkyCig company
- 47:29 - Leaving room for growth when selling your business
- 55:04 - Should you buy a SaaS business?
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