Sell your SaaS to an owner who will keep it running.
We look for subscription software with loyal customers, clear economics and a product that a new owner can run. We plan to own it for the long term and to improve it with care.
ContentsS.1Does Playbook Media buy SaaS businesses?1 / 6
§ S.1
Does Playbook Media buy SaaS businesses?Yes. It is our first search.
Yes. Our first acquisition search is for an established subscription software business. We prefer $5k–$20k in monthly recurring revenue and three to eight years of operating history.
- Typical fit: a product that customers use every week and renew without a sales call.
- Terms: proposed terms follow a review of records. The search profile is not an offer or a valuation.
- After the sale: we protect the product customers rely on, then improve it one measured change at a time.
§ S.2
The software we look for.Four categories, one profile.
- Category 1
Developer tools
Tools that developers and technical teams use to build, test, monitor and document software.
- Category 2
Creator software
Tools that writers, podcasters, designers and video makers use to make and publish their work.
- Category 3
Productivity software
Apps for notes, writing, scheduling, forms and time, used by individuals and small teams.
- Category 4
Lightweight business software
Focused tools for invoicing, support, customer records, reporting and simple automation.
Strong fit
- $5k–$20k in monthly recurring revenue from many independent customers.
- Three to eight years of history, with records that we can check.
- Retention and margins that do not depend on the founder’s personal effort.
Usually workable
- Flat growth, if customers stay and the business generates cash.
- Some founder involvement, if the work is documented and someone else can do it.
- Revenue outside the range, if the business can pay for the people it needs.
Usually not a fit
- A product that needs a full rewrite before it can serve customers safely.
- A plan that works only with price increases that customers have not accepted.
- Less than twelve months of history, or records that we cannot check.
§ S.3
How we think about value.Five factors move the number.
We start from the cash that the business generates after it pays for the work it needs. Then we adjust for the quality of that cash.
- Factor 1
Revenue that renews
Revenue from customers who renew is worth more than one-time or irregular revenue.
- Factor 2
Retention
We follow the same group of customers over time. If many leave, the business must replace them just to stay level.
- Factor 3
The founder’s work
We count the cost of the work the founder does today. A product that needs forty founder hours a week must pay for someone to do that work.
- Factor 4
Concentration
When one customer or one channel brings most of the revenue, the business carries more risk.
- Factor 5
Operating cost
Hosting, support, maintenance and tools are part of the cost of ownership. We count them before we count any improvement.
§ S.4
What happens to the product and the people.Continuity first.
Many businesses at this size have a founder and a few contractors. Some have a small team. We agree the role of each person in the transition plan, before ownership changes.
Products keep their own brands and their own customer relationships. We improve reliability, clarity and support before we add complexity.
Shared tools from our internal platform help with measurement and experiments. The people who run the product stay responsible for its customers and its decisions.
§ S.5
Our process for SaaS sales.Five stages, at an agreed pace.
S.5.1Your first email
Introduction
Send the product URL, what it does, its age, its approximate monthly recurring revenue and what you want from a transition. We reply within five business days, including when there is no fit.
S.5.2If there is a fit
Conversation
We ask how customers use the product, why they renew, where your time goes and what would break without you. We agree a timeline before any detailed review.
S.5.3Agreed timeline
Records review
We check revenue, refunds and churn against billing and bank records. We review the code, the infrastructure and the support workload.
S.5.4After the review
Proposed terms and transition plan
We send proposed terms with a transition plan: responsibilities, knowledge transfer, customer continuity and your role.
S.5.5Agreed date
Handover
Ownership, accounts and knowledge move as the plan describes. Customers keep the service they rely on.
§ S.6
Questions SaaS founders ask.Short answers.
What size SaaS do you buy?
Our first search prefers $5k–$20k in monthly recurring revenue and three to eight years of history. A business outside that range can still be worth a conversation if it can pay for the people it needs.
Do you buy bootstrapped or venture-backed SaaS?
Both can fit. Bootstrapped businesses are more common at this size. A venture-backed business must have a shareholder structure where a sale at a realistic price works for every shareholder.
What retention do you look for?
We follow the same group of customers over twelve months. We want to see that most customers stay and that the revenue from them holds. The right level depends on the product and on who its customers are.
Would you change pricing later?
Only with evidence. If we test a pricing or packaging change, we measure retention, refunds and support load with it, and we judge the result after its cost.
Will you rewrite the product or raise prices?
We do not want an acquisition that depends on an immediate rewrite or unsupported price increases. Every change needs a concrete problem, an owner and a way to judge the result.
What happens to customer data?
Customer data moves only in a way that the law and your terms allow. We review data commitments during the records review.
Can I talk to founders who sold to you?
Not yet. Playbook Media has not completed an acquisition. We publish our process, our search profile and the reasons we pass, so that you can judge how we work.
- 1Search preferences for a first subscription acquisition. Not a valuation, offer or guarantee of fit. ↩
End of sell your SaaS