Ask HN: How much should I sell my company for?
I want to sell my wearable SaaS company but have no idea what its worth. Here is the summary of it:
Corporate: We founded the company 2 years ago. We focused on the LatAm market as a proof of concept. We are 2 founders and 2 investors. We all have 25%. We are willing to sell all of it or a percentage depending on the offer. We can also remain in the business if deemed necessary by the purchaser.
Product/Service:
- Its a GSM/GPS portable panic button, connected to a 24/7 assistance service.
- We began sales about 6 months back, and currently, have 368 paying clients.
- Each client pays $15 month. LTV = $250 USD.
- Churn rate <3%
- We invest in about $1,500 in google adwords a month, and acquire about 80-100 new customers per month.
Financials:
- Burn rate = $9,000 USD per month (without founders paying us salary). This is mostly for the call center and the GSM data payments. - We have about $120,000 USD worth of products in stock.
Technology:
Modern, agile stack > Ruby on rails / Twilio / Amazon EC2 We can manage the assistance of the service end from anywhere in the world thus lowering dramatically the costs.
Why are we selling? Investor 1 is thinking old school and wants to build a local team of sellers and do door-to-door. We think this must be an analytics first, SaaS-oriented business and as such, we should focus on keeping our churn rate low, customer acquisition costs, etc. Unfortunately, we personally dont have money to buy out this investor and my co-founder is burned out by the entire power struggle with him.
How much should I sell this company for? Thanks for the feedback!!