🧱 [Acquisition] How to look for signs that a SaaS is worth acquiring

How to use πŸ‘‡

Step-by-step process to help find a SaaS worth acquiring by checking Churn, Code and Customers.

Extracted from the Getting Acquired by @agazdecki.

Find out more about Andrew on his website.

Template πŸ‘‡


You want to buy a SaaS and sell it later for more money


Use this simple process to figure out a SaaS that is both a great asset and a good fit for you. Research those 5 areas before making your first offer.

Quick links



Buying an existing SaaS can be a much simpler path to profit than building your own. Your goal is to find a product that is missing one piece that you or your team specialize in (marketing, brand, sales, product etc.)

Churn (and other metrics)

Churn: Check churn against other similar sized businesses in the same segment
You have a winner if the company is a good sign
LTV: Check that this is higher than CAC
CAC: Check that it’s low unless LTV is very high
Low LTV and/or high churn should ring alarm bells


Understand at the high level how the product works
Check if the codebase is
Figure out who owns the IP
If there’s contractors etc involved make sure it reflects in the contract


Find out what customers say about the business
Read every review and testimonial
Reach out to customers
Check on social media
Try the product yourself
See how support is handled, in what manner and how long it takes

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