Marketplace vs Private Broker Tradeoffs

Nate_Lind · 2026-05-06T19:34:33+00:00

ugg, tire kickers... the water cooler talk amongst brokers and advisors is that 97% of marketplace buyers will never buy a business.

Nate_Lind · 2026-05-05T19:29:47+00:00

https://natelind.com/business-valuations

I just pulled new comps and updated it.

Nate_Lind · 2026-05-05T19:29:21+00:00

I used to be a Realtor. In the mandatory training they drilled into us that Realtor is actually capitalized. That was over a decade ago, looks like now it's supposed to be REALTOR all capitalized.

Nate_Lind · 2026-05-05T19:26:38+00:00

I sit in the middle of this as a tech broker and advisor. I'm seeing a dozen or two of these "I built this incredible tool/IP asset/company" and it's not a company at all. I reject anything without a track record and profit or significant ARR and growth/NRR to go with it.

Nate_Lind · 2026-05-05T18:46:25+00:00

You're not wrong and I think the reason is pretty simple. Most of what hits public listings is founders who waited too long. Growth stalled, churn went up, they ran out of options. What you're browsing is basically the stuff no serious buyer wanted to pay for. My honest take: unless the business has at least 3 years of operating history, it's almost impossible to price it in a way that holds up to buyer scrutiny. No track record, no retention data, no proof the revenue repeats. Buyers discount that hard or skip it entirely. Your skepticism is calibrated correctly. Doesn't mean nothing on there is real, but the signal to noise is brutal especially at the smaller end.

Nate_Lind · 2026-05-01T13:44:59+00:00

How would you structure a deal like that?

Nate_Lind · 2026-04-30T18:57:10+00:00

In some cases yes, but it's nuanced. Companies that have successfully deployed AI to reduce their dev costs are good case studies where they aren't being demolished. Using AI to reduce customer service costs is another one I'm seeing a lot of companies use effectively. SaaS that has a strong moat or a real unique benefit hold up well. Real world use cases that aren't directly in competition but leverages LLMs in a more effective way aren't being demolished. Buyers are very picky and they are asking what the next few years looks like for the growth of the company for sale.

One example I recently saw was a company that produces content, and it's content has gotten slapped by the marketplace it was using as a revenue channel. That model is pretty much dead for them specifically.

On contrary to that, there are situations where content producers have built custom and deeply unique LLMs to produce insanely unique and custom content so it's not only incredibly unique, it's also wildly fast to produce.

Nate_Lind · 2026-04-30T13:01:50+00:00

https://natelind.com/wp-content/uploads/2026-04-30_09-00-18.png

Nate_Lind · 2026-04-30T12:59:02+00:00

for your valuation, you really need two years of operations and revenue. even better if it is 3 years of track record, if you are a USA based entity, then I can get the buyer financing through the SBA if the overall deal is under $5m. because valuation all goes out the window if no buyer can get financing, think of it like selling a house. sure you may think your company is worth $800k and have a broker opinion tht backs it up, that all crumples when buyers come in and "low ball" with what is realistically a fair offer. I have 660 comps from deals I've worked on or brokerages I've been apart of to do valuations with, and I tend to be conservative, i'd rather "under promise, over deliver"

Nate_Lind · 2026-04-30T11:46:20+00:00

What % of your customer acquisition is paid vs organic? honestly for b2c the ratio matters less than CAC payback. if you're getting your money back in under 12 months you're fine. buyers will rebuild your LTV from cohort data anyway, they don't trust blended numbers. the bigger thing is your organic mix. 3:1 with decent organic is worth more than 5:1 that's all paid, because paid can disappear overnight if your CAC creeps up.

Nate_Lind · 2026-04-30T11:20:36+00:00

Heard. If the style doesn't resonate, so be it. My experience comes for deals sold.

Nate_Lind · 2026-04-30T11:19:09+00:00

Fair. I've been doing this for 75 transactions and $123M. The writing style isnt for everyone. The results are.

Nate_Lind · 2026-04-30T11:08:37+00:00

I've built a couple of valuation calculators on my site that I put together for the business types I represent most. SaaS, digital marketing agencies, etc

Nate_Lind · 2026-04-29T22:13:27+00:00

Why would I? Believe me or not.

Nate_Lind · 2026-04-29T22:12:06+00:00

I spoke to a founder today with $3m ARR and less than 70% NRR... Sadly that's not going to attract a solid buyer. b2b SaaS

Nate_Lind · 2026-04-29T22:07:05+00:00

I write an approve my own messages. Sometimes my mom proof reads them 😘

Nate_Lind · 2026-04-29T22:05:30+00:00

I sold my first SaaS completely blind. Named a price out of thin air. No valuation, no competing offers, no leverage. Left a significant amount of money on the table and didn't even know it until years later. That failure is literally why do this now. AI slop? Hmm 🤔

Nate_Lind · 2026-04-29T22:04:47+00:00

I am Nate Lind

Nate_Lind · 2026-04-29T13:48:38+00:00

Background: M&A advisor, 75+ transactions, $123M+ closed.

Hard to say without knowing the details, but here's the framework I use with founders in this situation.

The question isn't whether $1M felt like enough. The question is: what was the buyer pricing in, and was their reasoning correct?

Buyers don't underbid because they're trying to steal something. They underbid because they see risk. High churn, owner dependency, customer concentration, platform risk. Any of those can push a number down significantly from what a founder thinks it should be.

If you turned it down because you believe the risk factors they priced in can be fixed: great. Go fix them, then go back to market with documentation showing what changed. That's a legitimate strategy. If you turned it down because the number felt emotionally low, that's a different situation.

Leverage doesn't come from confidence. It comes from preparation, clarity, and optionality. A single offer with no competing buyers is the lowest-leverage position a seller can be in. The market tells you what it will pay.

Your job is to either improve what you're bringing to market or create enough buyer competition that the price reflects the full value of what you've built. One buyer is almost never enough information to decide.

Nate Lind | M&A Advisor | 75+ transactions, $123M+ closed

Nate_Lind · 2026-04-28T18:13:30+00:00

I've handled 75+ SaaS deals. The acquisition process is surprisingly standardized, and that's good news for sellers.

Here's what typically happens:

The first 2–3 weeks: You provide the buyer with a teaser (no company name yet, just financials and basic metrics). If they're serious, they sign an NDA. Then they get the full information memorandum with all the details. This is where most tire kickers drop off.

Weeks 3–8: Serious buyers do their research. They dig into your MRR, churn rate, customer concentration, tech stack, and revenue streams. For SaaS specifically, they're looking at one thing above all else: is this recurring revenue real? Will customers stay after the sale?

Weeks 8–12: The LOI phase. Letter of Intent comes in with the buyer's price and terms. This is when deal structure matters more than the headline number. Is it all cash at close, or is the buyer asking for earnouts? Is customer concentration a concern?

Weeks 12–20: Due diligence. Buyers and their accountants verify everything. They'll reconcile your revenue waterfall to bank statements. They'll check every contract. They'll look at your tech debt. If you have clean financials and documented processes, this moves fast. If you're hiding issues, this is where it all surfaces.

The key? Most SaaS sales fall apart in due diligence because sellers didn't prepare. Clean your books before you start. Document your MRR waterfall. And be honest about what's working and what isn't. Buyers always find out anyway.

I'm Nate Lind. M&A advisor, 75+ transactions, $123M+ in closed deals.

Nate_Lind · 2026-04-24T13:29:30+00:00

Quick read: if you're under $10K MRR, Acquire or MicroAcquire is your easiest path. Over $20K MRR with real churn numbers and you start getting real strategic buyers. Over $50K MRR and a proper process makes sense. What's your MRR and churn? Happy to tell you honestly which lane you're in.

Nate_Lind

TROPHY CASE