Why buy a SaaS business?

TL;DR — In this section, I talk about why should you buy instead of building a SaaS product and when should you build instead of buying.
Having led 10+ acquisitions, including brands like Twemex and Typeframes, I have gained strong insights into this process. I firmly believe that having a clear reasoning behind why you want to acquire a particular business will help you define a clear roadmap for its growth.

Here are different reasons why you should acquire a SaaS business instead of building one:

  • Product Market Fit reduces the risk of consistent pivoting, and yet still leaves the room open for experimentation. This one is my personal favorite, as I consider finding Product-Market fit to be one of the hardest things in business.
  • Saves you a ton of time and money: Professionally, you’d be able to jump 1-2 years in the development cycle of the product, saving you the resources that you would’ve otherwise spent building the product from scratch.
Note: You may want to acquire a SaaS business that operates upstream or downstream in your supply chain.
  • Operating Revenue: Many of these purchased assets come with revenue (and in the best cases, profits). This helps in taking care of the operating expenses from the first day itself.
  • Existing customer base and brand recognition: Minimized learning curve associated with building a team from scratch allows you to focus on scaling and improving the product right from the get go. Enjoy a warm domain, existing SEO and get more leverage on anything you’ll do.


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