Ask HN: Navigating a strategic acquisition as single bootstrapped founder
I've been running my bootstrapped SaaS business for 10+ years and find myself positioned for an exit. Discussions with a potential partner are trending toward an acquisition. Our client list, software, and market leadership/brand in our niche align very well with the strategic direction of the acquirer.
I'm confident we could get 6-8M from private equity based on the strength of our books. But I'm a bit lost on how to position this discussion as a strategic acquisition that can/should drive a higher price. I'm fairly unsophisticated and have spent my 10 years growing the business rather than positioning for an acquisition.
Where do I start? My ideas:
Get a broker - I've spoken to a few in the past and the response is usually "Sure I'll sell your company! When do we start?!" -- it felt like talking to a real estate agent where they have nothing to lose and everything to gain. Are there known reputable brokers? Ones that specialize in SaaS strategic acquisitions around our general size? How do you find one that's a good fit?
Get a lawyer - I've got one that's been my guy since we incorporated. Not sure if we need a specialist. I'm 100% owner, no debt, barely any contracts, good documentation, reliable accounting. just a simple SaaS business with a bunch of paying clients. Can we keep it simple?
What am I missing? Any advice is appreciated!
Published in 2024, this chronicle by @-how-to-sell details the mechanics of building a profitable, self-funded business without venture backing.
The community focused on B2B customer acquisition channels, cold email vs SEO distribution, and balancing full-time employment with side-project development.
Like estate agents the brokers help you with (probably) your largest financial transaction in your life. They can increase the price, or tell you if you aim too high. Have a look at https://www.discretioncapital.com/ They charge only on success, but that also means they don't accept every client. (I met Einar a couple of times at conferences)
Another option: explore an IPO on a smaller exchange.
https://www.publicfinancial.com/advantages
At the very least, it will be educational, and understanding that path more will give you some more leverage in your negotiations.
You might find this article helpful (author talks about the various approaches he used to sell his business). https://mtlynch.io/i-sold-tinypilot/
Suggest getting a sell-side agent. They do that everyday and know the nuances. I know Einar as another poster suggested.