Alameda County, CA
Not Disclosed
Cash Flow: $975,496

Alameda County, CA
Not Disclosed
Cash Flow: $975,496

Pleasanton, CA
Not Disclosed
Cash Flow: $400,322

Nashua, NH
$1,299,000

Nashua, NH
$1,700,000
$995,000
Poland
$3,900,000
Alberta
$27,000,000
Ireland
$1,040,000
Virginia Beach County, VA
Not Disclosed
Cash Flow: $168,000
Nashua, NH
$160,000
New York
$8,000,000
Uae
$1,299,999
New York
$6,500,000
$7,785,000
Clayton, NC
Rome
$4,080,000
Raleigh, NC
$1,500,000
SureBridge
SureBridge
Serving Pinellas County, FL
Raleigh, NC
$1,500,000
Vienna
$1,950,000
Nashua, NH
$140,000
Zagreb
$2,000,000
Delaware
$450,000
New Castle County, DE
Not Disclosed
Cash Flow: $210,000
Texas
$96,000,000
$17,500,000
$743,000
New York
Millburn, NJ
$20,000
New York, NY
$1,200,000
Brentwood, TN
$1,500,000
Franklin County, OH
$400,000
Mahoning County, OH
$25,000
Contra Costa County, CA
$4,000,000
Williamson County, TN
$199,000
Boca Raton, FL
$200,000
Everett, WA
Not Disclosed
Boca Raton, FL
$25,000
$250,000
Kitsap County, WA
Los Angeles, CA
$5,500,000
Boca Raton, FL
$45,000
Boca Raton, FL
$20,000
$5,000,000
$35,000
$300,000
The software and app industry encompasses a broad spectrum of businesses that develop, distribute, and maintain software applications for various platforms such as desktops, mobile devices, and cloud environments. Artificial intelligence and machine learning are transforming the software landscape by enabling more intelligent and adaptive applications, while the shift to cloud computing continues to gain momentum as businesses are increasingly adopting cloud-based services for their scalability, cost-efficiency, and flexibility.
If you are looking to buy or sell a software company or app business, it’s important to understand how these businesses are valued in the business for sale market. To provide some context, we have aggregated software and app business for sale listing data below and surfaced important financial and valuation metrics.
Market Overview
|
Number of Businesses Analyzed |
140 |
|
Median Asking Price |
$1,500,000 |
|
Median Reported Revenue |
$611,762 |
|
Median Reported Earnings |
$264,441 |
|
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
|
Software and App Company Business Valuation Multiples
|
Range |
Revenue |
Earnings (SDE) |
|
Lower Quartile |
1.61 |
2.97 |
|
Median |
2.59 |
3.99 |
|
Upper Quartile |
4.09 |
5.37 |
|
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
||
Read the Report:
Software, App, and SaaS Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy a software or app company?
Prices vary depending on the size of the business listed, but the median asking price for an established software or app business is $1,500,000.
How much do software business owners earn?
Software and app business owners report median annual revenue of $611,762 and annual owner earnings of $264,441. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings. Software businesses tend to have very high profit margins.
How do I value a software or app business?
Valuing a software or app business involves considering several factors, including annual revenue, profit, growth (or decline) trends, and competition in the app market. Brokers, business owners, and business buyers will typically rely on valuation multiples to gauge business value relative to similar businesses in the market. Revenue multiples among software businesses listed for sale in the U.S. range from 1.61 to 4.09, with the median at 2.59. Earnings multiples range from 2.97 to 5.37, with the median at 3.99. These values suggest the average software business listed for sale may trade for around 2.59 times its annual revenue, and 3.99 times its annual owner’s earnings.
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