SaaS Holding Company Topics Discussed on this Podcast

• What is a holding company that acquires profitable SaaS businesses?
• How is selling your business to a holding company different from selling to a PE buyer or a strategic buyer?
• What are some of the reasons that founders sell a profitable and growing SaaS business?
• Why should founders run an annual exit planning exercise and review their exit strategies regularly?

Quote from Kevin McArdle, CEO of Big Band Software

“Some people think it never makes sense to sell a SaaS business if it’s growing and successful, because if you wait three months, it’s probably going to be worth a little bit more. But there are a hundred reasons to sell a business and only one of them is money. There could be a life circumstance, it could be you’re just tired as a founder. 

“On the good side, somebody might say, Hey, it’s been a good run and I want the big paycheck. Of course, you deserve that. And it might make sense for you right now versus six months. So go get that check.

“On the challenging side, there’s often co-founder conflict that they can’t resolve and they need to sell this business to wash their hands of that relationship. I’ve also had a founder get a really bad healthcare diagnosis and need to sell the business to take care of their family. There are all kinds of different reasons to sell your company. “