SaaS M&A recorded 210 deals, up from 165 the previous year, with 58% of those from private equity (PE) firms.
The stats show that SaaS acquisition has been gaining momentum in the past few years. However, where you sell matters because it affects the quality of your buyer, the valuation multiple you receive, and the exit timeline.
That’s why most SaaS founders have been asking: ‘Where can I sell my SaaS company?’
In this guide, we discuss exit channels for selling your SaaS company and the buyers to target. We also cover tips for preparing your business for sale.
Looking for the right route to sell your SaaS business?
Here are your options:
The different types of buyers who acquire SaaS companies have different goals, which can influence the channels you choose when listing your business.
Below is a detailed overview of each buyer type and how they approach acquisitions:
These are buyers purchasing your business to own, grow, and sell it. They have the least capital to invest in acquisitions, but are best at preserving your company’s legacy. For this type of buyer, you can use channels like online marketplaces, direct outreach, or business brokers.
Examples of these buyers are independent acquirers, investors, and search fund operators.
Also known as serial acquirers, these are companies that acquire your SaaS business to enhance its competitive position and hold it indefinitely.
They often pay in cash, speeding your exit, but their multiples tend to be lower. For these buyers, you can choose from exit channels such as business brokers, online marketplaces, or direct outreach.
Examples of top serial SaaS buyers include Constellation Software, The Brydon Group, Valsoft, and Arising Ventures.
These are companies in your industry or related ones buying to expand, gain a competitive edge, or enter new markets. Their interest is not just revenue but also your networks, customer relationships, technology, operations, and workforce.
That’s why they are usually willing to pay more for the right acquisition. If you're targeting these buyers, you can use channels like direct outreach, M&A advisory firms, investment banks, or business brokers.
Examples of top strategic acquirers in SaaS are Microsoft, HubSpot, and Salesforce.
These are value-driven buyers acquiring your business to improve it and sell it for a return within a defined investment window. They focus more on your company’s recurring revenue and growth potential.
To reach out to them, you can use channels like M&A advisory firms, direct outreach, or business brokers. They usually pay higher prices for quality recurring revenue and strategic alignment.
Examples of top SaaS private equity firms include Vista Equity Partners, Thomas Bravo, and Insight Partners.
Before you decide where to sell a business, it’s important that you evaluate how the specific channel aligns with your preferred buyer type and expectations.
Here’s where to sell a business and how each channel works:
These are M&A experts with curated buyer networks that help you sell your SaaS company at a fraction of the cost of business brokers. They have hands-on experience, hence can maximize your company’s sale price and ensure smooth transactions.
Working with founders, we often see that the real challenge is not finding a buyer but preparing your business to reach a successful close. At Exitwise, our M&A advisory team combines transaction expertise with firsthand experience in selling businesses.
We help SaaS founders position their companies effectively, navigate negotiations and due diligence, and close with confidence.
If you're considering a sale, book a call to explore the next steps.
These are industry experts with strong networks in specific vertical markets, including healthcare tech, fintech, HR tech, workforce management, and government tech.
They can handle your business's sales process from mapping your buyer universe and vetting potential buyers to closing.
Some of the top leading SaaS investment banks include Focus Investment Banking, Founder M&A, and Hillview.
These are publicly accessible niche listing platforms with a broad base of qualified buyers where you can list your SaaS business for sale.
They accelerate your sales process by curating offerings that increase your visibility. Besides, most platforms come with built-in marketing tools you can use to get your business in front of your target audience.
Notable SaaS online marketplaces include Salesforce AppExchange, SaaSZilla, and Microsoft AppSource.
These are specialized intermediaries with a strong network of buyers, including strategic acquirers, individual buyers, and private equity firms, to help speed up the sale of your company.
They can manage the entire process of your sale, from valuation and buyer outreach to negotiation, due diligence, and closing.
Some notable SaaS-focused brokers include Empire Flippers, Quite Light, FE International, Founders Advisors, and MicroAcquire.
This is a structured engagement approach that leverages your networks to sell your company.
You identify potential buyers, qualify them, handle negotiations and due diligence, close the deal, and transition ownership. It works best if you have competitors or PE firms that may want to acquire your business.
You can reach your target audience through several channels, such as direct phone calls, personalized emails, or face-to-face meetings.
The revenue of your SaaS company attracts different buyer pools, valuation multiples, and deal structures. Therefore, you need a tailored exit that depends on your business size.
Here’s a breakdown of the different company sizes:
If you have a SaaS company with an ARR Range of under $1M, you should target first-time founders and micro-private equity (PE) firms.
Here are some dynamics you should know when selling these firms:
If your SaaS company’s ARR ranges between $1M to $10M, you should consider growth-focused PE firms and established SaaS companies already operating in your space.
Here’s what you should know:
If you are preparing to sell your business with an ARR of $10M+, you should target holding companies, top-tier PE firms, and larger corporations with strong financial backing.
Here is what you should understand before moving forward:
Here are expert tips to help you understand what SaaS buyers are looking for so you can structure your deal for a successful transition:
Let’s look at some common questions we get from founders looking to maximize their exit:
A realistic multiple of a SaaS company depends on your industry and revenue range.
Most private SaaS companies are selling at EBITDA multiples of 9.3x to 19.3x, while their SDE multiples range from 6.1x to 10.5x.
It depends on your deal size and the sales cycle.
For small deals, it can take 14 days to 1 month. For mid-market deals, 2-3 months. Enterprise deals take 6 months to 12 months. If the deal is very large, it can take you 1-2 years to close.
Yes. Although you can sell your SaaS company without a broker or an M&A advisor, it’s best to engage professionals.
They have built genuine connections with potential buyers in the industry, and they’ve closed deals similar to yours.
Buyers look for a balance between your business’s growth rate and profit margin. They prioritize businesses with a 40%+ rule of 40 score.
They also look at the quality of your recurring revenue, net revenue retention of 100%, and a churn rate of less than 10% per year.
Yes, not all buyers look for profitability.
If your company has a strong client base or an asset that aligns with what a potential buyer could be looking for, you can still attract good offers. However, you may not be able to attract buyers like PE firms, whose main goal for acquisitions is to drive profitability.
SaaS exit channels help you confidently sell your SaaS businesses, software companies, and subscription-based technology companies.
However, there is no single marketplace that's right for every SaaS company. The best buyer depends on your growth profile, recurring revenue, customer base, and long-term goals as a founder.
While finding a buyer is only one part of selling your SaaS company, the challenge is navigating the exit process. At Exitwise, we help founders maximize value through exit readiness planning, strategic positioning, and hands-on M&A advisory support.
What makes our approach different is that our team brings practical experience from personally building, scaling, and selling businesses.
Schedule an exit strategy session today to strengthen your exit readiness and secure the best deal.
Let Exitwise introduce, hire and manage the best, industry specialized, investment bankers, M&A attorneys, tax accountants and other M&A advisors to help you maximize the sale of your business.
