Selling Your SaaS: How to Exit for Millions
Don't sell when you are desperate. Sell when you are growing. Multiples are based on SDE (Profit) or Revenue (if growing 100% YoY).
What is SDE (Seller Discretionary Earnings)?
SDE (Seller Discretionary Earnings) is Your Net Profit + Your Salary + One-time expenses.
The 3 Core Benefits
Liquidity
Founders are "Paper Rich, Cash Poor." Selling gives you money in the bank to buy a house or start the next thing.
Freedom
Running a SaaS for 5 years burns you out. Selling releases you from the burden of support tickets and server alerts.
Legacy
A Strategic Buyer (like a competitor) can take your product to heights you couldn't reach alone.
The Acquisition Process
Clean your Books
Get a P&L statement from Xero/Quickbooks. If your finances are messy (mixed with personal), buyers will run away.
List on Marketplaces
Acquire.com is the standard for startups <$10M. Flippa is for smaller sites. Empire Flippers is for e-commerce.
The NDA
Prospective buyers will ask for details. Make them sign an NDA (Non-Disclosure Agreement) before showing code or customer lists.
The Offer
You want cash upfront. Avoid "Seller Financing" (where they pay you with the business's own future profits) if possible.
Exit Status
Mark your startup as "Acquired" on Mesh. It is a badge of honor. "Exited Founder" status opens doors.
Shutting Down vs. Selling
| Feature | Shutting Down | Selling |
|---|---|---|
| Return | $0 | 3-5x Annual Profit |
| Users | Angry | Handed Over |
| History | Erased | Continued |
Frequently Asked Questions
How long does it take?
3 to 6 months. It is not like selling a stock. It is a legal process with contracts and transfer of assets.
Do I need a broker?
For <$1M? No. For >$5M? Yes, get an M&A advisor. They take 10% but negotiate higher prices.
What about taxes?
QSBS (if C-Corp) can make it tax-free. Otherwise, capital gains tax. Talk to a CPA before signing.
What makes a launch channel high intent?
High-intent channels have users actively searching for solutions, not just browsing a feed.
How many channels should I launch on?
Start with 3-5 strong channels, measure conversions, then expand to 10-12 over time.
How do I avoid launch fatigue?
Stagger your launches and reuse assets so each channel gets a focused push.
What should I measure after launch?
Track qualified signups, backlinks, and demo requests, not just raw traffic.
How does Mesh of Growth fit with other platforms?
Use Mesh for compounding reviews and backlinks while other platforms provide short-term spikes.
Ready to get instant traffic from trusted founders?
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