Alyona Mysko

Back in June 23 I acquired my 2nd SaaS product, Meet Slack. Since the acquisition it's generated over 33k in revenue. Here's why I bought it 👇
 
 Acquiring SaaS products is a high risk endeavour. In order to drop that risk I look for specific characteristics in a deal. Below are some of the items on my list:
 
 1. B2B --> I've learnt the hard way to avoid B2C
 
 2. Low churn --> Ideally below 3%. It could be as high as 5% if I believe I can drop it.
 
 3. At a minimum 50 paying customers --> Helps validate product-market fit.
 
 4. At least 10 paying customers who have paid for multiple years --> Helps validate product-market fit.
 
 5. No complicated industries --> This includes medical, space, biotech, etc.
 
 6. Simple, mature product --> I want something that does one thing extremely well. I don't want to have to poor a ton of R&D into the product post acquisition.
 
 7. Built in growth engine --> This is one of the hardest thing to find in a deal. I want to acquire something which is growing at least 10% a year organically either from strong existing SEO, virality, account expansion, etc.
 
 8. Low operational expenses (AKA high gross margin) --> Most SaaS cost very little to maintain. It costs me less than $100 a month to run Meet Slack.
 
 9. Self service (AKA "low support cost") --> I don't want to have to run a large support team to assist users. The product needs to be easy to use and require little to no account management.
 
 10. Clear way to grow revenue --> Either by investing in marketing, further product development, raising prices, or a combination of the above.
 
 11. 3 - 5X multiple on ARR --> I want to make my money back as soon as possible. Lower churn, a higher ARPU and/or LTV, and the strength of the built in growth engine would increase the multiple.
 
 Meet Slack checks most of these boxes and will generate over $40k in revenue in 2024. This comes to around a 50% return on investment.
 
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