Goal Planning for Online Businesses
Typical SaaS (B2B): Churn 3%, Growth 7%, Multiple 5.5x
The amount you want to receive after all taxes and fees
Your expected capital gains tax rate (typically 15-20% in US)
Legal, accounting, and other transaction costs
Typically 5-10% for business brokers
Your Seller's Discretionary Earnings (SDE) as a percentage of revenue. This includes net profit plus all compensation and benefits paid to owners.
Your equity percentage at time of sale
The multiplier will be applied to annual profit if profit margin is greater than 0, otherwise it will be applied to annual revenue
Percentage of customers lost each month
Monthly revenue growth rate
Percentage of visitors who start a trial
Percentage of trial users who become paying customers
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