The Indie Hacker's SaaS Exit Playbook

What Does an Exit Look Like for a Bootstrapped SaaS Founder?

For a bootstrapped SaaS founder, an "exit" typically means selling the business you built to a new owner for a negotiated price. Unlike the headline-grabbing tech acquisitions on TechCrunch, most indie SaaS exits are modest in scale – but still life-changing for the founder . You probably won't have VCs chasing you with billion-dollar offers (those are statistical anomalies ). Instead, you'll be navigating a quieter market of individual buyers, small funds, or companies interested in your profitable "lifestyle business." And that's okay – every small deal is a big deal to the founder involved .

In practical terms, a SaaS exit is a process, not an event. It often spans several months and involves preparing your business, finding a buyer, going through negotiations and due diligence, and then transitioning the ownership. It's not as simple as handing over the keys and walking away the next day . Often, who you sell to matters almost as much as the price – you want a buyer who will take care of your product, customers, and maybe team, in a way you're comfortable with . You may even stay involved for a brief period post-sale to ensure a smooth handover or to answer questions for the new owner .

The outcome of a successful exit is usually a lump sum (or structured payout) in exchange for the ownership of your SaaS. This could range from tens of thousands of dollars for a small side-project, to hundreds of thousands or even millions for a SaaS with significant revenue. The motivation to sell varies – some founders want to cash out an asset they've built and maybe work on something new, others might be tired or facing personal reasons to step away . Whatever the reason, it's important to have a clear story for why you're selling, because it's the first question any buyer will ask . If your story isn't convincing and honest, buyers may wonder what you're not telling them .

In summary, a bootstrapped SaaS exit is about getting rewarded for the value you've created, on a scale that makes sense for indie businesses. It requires preparation, transparency, and finding the right fit between you and the buyer. The rest of this playbook will walk you through how to maximize that value and avoid common pitfalls, so you can achieve a successful exit that you'll feel great about.

SaaS Valuation 101: Methods and Multiples

One of the first questions you'll face is "What is my SaaS worth?" Valuing a small SaaS business can be part art and part science. For indie hackers, the valuation is usually based on your profit or revenue multiplied by a factor (multiple) that reflects the business's quality and growth prospects. Two common methods are:

Multiple of Profit (SDE/EBITDA): Many buyers of small SaaS look at seller's discretionary earnings (SDE) or EBITDA (earnings before interest, taxes, etc.) and apply a multiple. Bootstrapped SaaS startups with under $1M in annual revenue typically sell for about 3× to 5× annual net profit . For example, if your SaaS makes $200K/year in profit, a rough valuation might be in the ~$600K–$1M range. This range can shift based on growth rate – fast-growing companies or those with very high margins might push the multiple higher (e.g. 6× or more), whereas flat or declining ones might be on the lower end.
Multiple of Revenue (ARR): In some cases (especially if your SaaS is re-investing profits to grow or break-even), buyers may use a revenue multiple. Larger SaaS companies often sell for a multiple of Annual Recurring Revenue. However, for very small SaaS, revenue multiples usually only make sense alongside an understanding of profitability. A rough rule for micro-SaaS is often cited as 2×–4× ARR in many cases (which correlates to similar profit multiples if profit margins are ~50%). High-growth or strategic acquisitions can go higher. For instance, in late 2024 a mobile app building SaaS with strong growth fetched around a 10× profit multiple (a very high bar) due to heavy buyer interest . But that is more an exception than the rule.

What drives the multiple? Several factors come into play in valuation:

Growth Rate: If your Monthly Recurring Revenue (MRR) is growing quickly, buyers pay a premium. If it's stagnant or shrinking, expect a discount.
Profitability and Margins: Profit still matters. Startups with 40%+ profit margins attracted far more buyer interest on Acquire.com, for example . A healthy profit means the buyer earns back their investment faster, so they might pay a higher multiple.
Retention and Churn: High customer churn will scare buyers and lower the multiple. Strong retention (low churn, high lifetime value) shows stability.
Business "Moat" and USP: If your SaaS has a unique selling proposition, strong brand, or loyal niche community, it can justify a better multiple. Conversely, if it's a generic product in a crowded space, buyers may value it lower.
Owner Involvement: A business that runs smoothly without heavy daily involvement from you is more valuable. If everything depends on you (the founder), buyers will factor in the cost/risk of replacing your role. In fact, a business that is well-run and not overly dependent on the founder is inherently more sellable and tends to attract higher valuations .
Documentation & Transparency: A well-documented business with clean records appears reliable and lower risk. As John Warrillow (author of Built to Sell) says, a well-documented business is perceived as well-managed and will attract higher valuations from buyers .

It's critical to be realistic in your valuation. One common mistake is overvaluing your SaaS due to emotional attachment, which can lead to zero offers because buyers won't "give it a second look" . The other extreme is undervaluing – selling too cheap and leaving money on the table. To hit the sweet spot, research recent comparable sales (if data is available), use online valuation calculators as a rough starting point (with caution), or consult with brokers/marketplaces who see many deals. Many brokers offer a free valuation analysis, which can provide an objective checkpoint.

Remember, valuation is ultimately about what the market (a buyer) is willing to pay. Your goal is to present your SaaS in the best possible light – high recurring revenue, solid growth, low churn, clear financials – to justify the higher end of the typical multiple range. In the next sections, we'll cover how to prepare your business to achieve that.

Preparing Your SaaS for Sale

Successful exits don't just happen; they are carefully prepared in advance . As a founder, you'll want to get your SaaS "exit-ready" so that when buyers come knocking (or when you start outreach), everything is organized and impressive. Here's how to get your house in order:

Organize Financial Records: Clean, accurate financials are a must. Use proper accounting software (QuickBooks, Xero, etc.) or at least well-structured spreadsheets to track all income and expenses . Ensure your profit & loss statements are up-to-date and reconciled with reality (buyers will likely request bank statements or Stripe reports to verify numbers). If your revenue is subscription-based, prepare MRR and churn reports. The goal is to show a clear history of revenue, costs, and profits month by month. Inadequate record-keeping is a common mistake that can derail a sale . So start early – "Start organizing early (like, yesterday)" as one exit guide quips .
Know Your Key Metrics: Beyond raw financials, track SaaS metrics such as MRR growth, churn rate, Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC), ARPU, etc. Buyers will ask about these to evaluate the health of your subscription business. You don't need a CFO to be on top of your numbers – use affordable tools or templates to monitor metrics and be ready to answer any questions . Being data-driven and having these numbers at your fingertips will boost your credibility as a seller .
Document Everything (Seriously, Everything): Make your business as transparent and transferable as possible. Document your processes, operations, and technology in detail. This includes standard operating procedures (SOPs) for running the app (deployments, server resets, backups), handling customer support, marketing workflows, billing, etc. . Document your codebase and infrastructure setup as well – clear code comments and a high-level architecture description can go a long way. As one founder who sold his SaaS advises, "Every tech detail, deployment, server infra, the way you handle support, downtime, refunds… The new owner will need a guide on how to run the business. If everything is in your brain only, it is a deal blocker." . In short, become a documentation nerd. Having this in place not only impresses buyers, it also signals that your SaaS is well-run and not a mysterious black box. (Plus, if you ever got hit by a bus, the business could still run – that's the level of clarity to aim for.)
Streamline and Automate: If there are any operational tasks you can streamline before sale, do it. Buyers love to see a business that runs efficiently. Automate routine processes (marketing emails, server scaling, data backups, etc.) and document those automations . Show that your SaaS can scale without needing a huge team. For example, if you've integrated an automated onboarding sequence or a self-serve knowledge base that reduces support tickets, highlight that. Efficiency = higher appeal and often a higher valuation .

Clean Up Any "Messy" Areas: Take care of any lurking issues that could raise eyebrows in due diligence. For instance:

Legal/IP: Ensure you have the rights to all code and assets. If you used contractors, make sure you have written agreements that assign IP to you. Verify that any software libraries you use are properly licensed (no unlicensed or "trial" software in production). Also check your trademark/domain status, and patent status if applicable.
Contracts: If you have key contracts (with customers, vendors, or partners), get those organized and make sure they're transferable. If something is expiring or due for renewal, addressing it proactively is wise.
Technical Debt: You don't need to rewrite your whole app, but fix any glaring bugs or stability issues. If there is a part of the system that only you know how to operate, simplify it. For example, if deploying the app requires manually editing a config file on the server, perhaps automate that or document it clearly. The smoother the technical operation, the more confident a buyer will feel. Showing that you've even documented the code and taken time to consider the next owner adds to buyer confidence .
Solidify Your Team (if any): If you have employees or contractors, discreetly feel out who would likely continue under a new owner. You might be hesitant to tell staff you're selling (understandably), but buyers will want to know if key team members (developers, support reps) are staying. If you can, have employment contracts or agreements in place. If team members might leave, at least have SOPs and training docs ready so a buyer can more easily replace them . If you're solo, this point is about making sure the business can run without you (see documentation above).
Keep the Ship Running: While preparing for sale, do not neglect the day-to-day operations. It's easy to get so caught up in exit prep that growth stalls or customers churn. That will hurt your valuation and leverage. In fact, one of the worst things is assuming you'll definitely sell and then "taking your foot off the gas" and coasting . Until the money is in the bank, run your SaaS as if you will own it long-term – continue deploying updates, support customers, and ideally keep growing. Many deals fall through; you need to be prepared to continue running and even enjoy the business if a sale doesn't materialize. Buyers also prefer a business that isn't in decline at the time of sale. As Empire Flippers advises sellers: "Continue to operate things as if you expect to keep it… This not only keeps everything as advertised, it shows buyers you care about the company's success." .

In short, prepping your SaaS for sale means making your business legible and attractive to someone who's never seen it before. You want to present a polished package: clear financials, well-documented operations, stable tech, and a business that looks easy to take over and grow. This groundwork may take weeks or months, but it can significantly increase the price you get and speed of closing a deal.

Identifying the Right Buyers (and What They're Looking For)

Not every potential buyer is the right fit for your SaaS. Different types of buyers exist, each with their own goals and criteria. As a founder, you should have an idea of who your ideal buyer is – not just for maximizing price, but for aligning on vision and ensuring a smooth transition . Here are the common buyer categories for indie SaaS:

Individual Entrepreneurs: These could be fellow indie hackers or small teams (2–3 people) looking to acquire a stable, profitable product. They might be first-time buyers or operators who want to skip the "zero to one" phase and jump into running a business with revenue. Individual buyers often value businesses that don't require a large staff and that have steady cash flow to replace or supplement their income. They will look at how much time is required to run the SaaS (they may be okay with a 10-20 hour/week commitment, but not a 24/7 firehose). Many buyers on marketplaces like MicroAcquire (Acquire.com) are individuals or small partnerships hunting for these opportunities. If your SaaS is under, say, $500K in value, the buyer is very likely to be an individual or small partnership.
Micro-PE Firms and Aggregators: In the last few years, a number of micro private equity firms have emerged that specialize in acquiring small SaaS and online businesses. Examples include Tiny Capital, SureSwift Capital, Xenon Partners, Thrasio-like SaaS aggregators, and others. These buyers usually have a fund or backing capital and a team to take over operations. Their goal is to buy, hold, and grow a portfolio of SaaS businesses. A micro-PE will be more "professional" in the acquisition process – expect them to be very thorough with due diligence and to have a clear formula for valuation (often based on your TTM – trailing twelve months – profit). The upside is they are experienced, have done deals before, and can move efficiently. They might also pay a bit more for a business that fits their portfolio well. However, they will also usually require that the business can operate with zero dependence on the original founder. Micro-PE firms are great buyers if you want a relatively quick, all-cash deal and the assurance that the new owner knows what they're doing. Just make sure their vision for the product aligns with treating your customers well.
Strategic or Industry Buyers: These are other companies (often larger SaaS or tech companies) that acquire your product for strategic reasons – e.g., to integrate with their offerings, acquire your customer base, or even acqui-hire your team. Strategic buyers can sometimes pay above-market multiples if they see a strong synergy. For instance, if your SaaS fills a feature gap for a bigger company's product line, they might value it highly to cross-sell to their existing customers. However, strategic acquisitions for very small SaaS are less common unless you've built something truly unique or you have a niche user base that a bigger player wants. If you think a strategic buyer is your ideal exit (maybe you know a particular company that would benefit from your software), you might have to proactively reach out to them. These deals can take longer and be more complex (involving lawyers, boards, etc.), but can be rewarding. Just be aware that sometimes strategic buyers might shut down the product and just absorb the tech or team – so if your priority is seeing your product live on, vet them carefully.
Marketplace Buyers: When you list your startup on a marketplace (like Acquire.com or Empire Flippers), you'll encounter a mix of the above types. Marketplaces have individuals, small funds, and companies all browsing for deals. For example, a profitable SaaS with $10k MRR might draw interest from solo buyers and small PE firms on Acquire.com. In 2024, Acquire reported a surge in buyer interest, with 38% of offers coming from buyers with verified funds (indicative of serious institutional or professional buyers) . The key is to screen inbound inquiries to identify who is a tire-kicker versus who is serious and qualified (many marketplaces now verify buyers' funds or identities to help with this).

Given these buyer types, it's wise to envision who you'd most like to take over your business. Ask yourself: Do I care deeply about the buyer's plans for the product? If so, you might favor an individual who is passionate about your space, or a company that will nurture the product, over a buyer who just sees it as an asset. If maximizing price is your top goal, you might lean towards whatever buyer makes the highest offer – but even then, be cautious. Remember Warren Buffett's advice: "You can't do a good deal with a bad person." In other words, a buyer who gives bad vibes or lacks integrity can make your life hell in a transaction, or worse, spoil your company's legacy .

Tip: Create a simple profile of your ideal buyer. Consider factors like: relevant industry experience, skill set (e.g. technical if your SaaS is complex), resources (do they have a team or will they be a solo operator?), and values (do they prioritize customers, team, etc. similar to you?). This doesn't mean you'll get a buyer that ticks every box, but it helps you clarify what matters. For example, you might decide "I want an acquirer who will keep my small support team onboard and has the marketing skills to grow the product further." That clarity upfront will guide who you target and how you negotiate.

Also, decide on your non-negotiables before you engage in serious talks. If keeping your two employees is non-negotiable, or you absolutely will not sell below $X price, know that and be upfront early. It saves wasted time by filtering out buyers who can't meet those terms .

Lastly, don't underestimate the value of personal connections. Some of the best acquisitions come about through networking and community. Engage in founder communities, and even mention quietly that you might be open to acquisition. Founders have successfully found buyers through Twitter or Indie Hackers by building in public and making genuine connections . For example, one indie hacker shared that his SaaS was acquired by someone who had been following his journey for years – the trust built up from his public sharing made the buyer confident enough to skip escrow and formalities, accelerating the deal . This is an outlier scenario, but it illustrates that who knows you can matter. So, nurture relationships: an interested peer from a Slack group or a follower of your blog might turn into your ideal buyer one day.

Where to Sell Your SaaS: Marketplaces, Brokers, and DIY Approaches

For the full detailed playbook with all sections including:

Where to Sell Your SaaS: Marketplaces, Brokers, and DIY Approaches
Legal and Due Diligence Essentials
Common Pitfalls to Avoid
Post-Sale Transition and Life After Exit

Closing Thoughts

Selling a bootstrapped SaaS is a challenging but achievable endeavor. By understanding the process, preparing thoroughly, and keeping a level head, you can navigate your exit to a successful conclusion. This playbook has armed you with an overview of what to expect – from valuing your startup, getting it ready, finding the right buyer, negotiating the deal, avoiding common traps, to handing over the reins and moving forward.

Exiting your SaaS is not just about the destination (the payday), but also about how you handle the journey. Do it with integrity and care – for your product, your customers, and yourself – and you'll not only get the best value, but also ensure your SaaS baby thrives in its next life. Many founders have walked this path before, from those selling small apps for $5k to those exiting multi-million dollar SaaS businesses. Learn from their stories (there are great interviews on Indie Hackers, articles on MicroAcquire's blog, etc.), ask for advice in the community, and remember you're not alone in this process.

Good luck with your SaaS exit, and here's to your next big adventure after a successful indie hacking journey! 🚀