Buying a small SaaS business is one of the best investments an engineer can make. Instead of spending months building from zero, you acquire proven revenue, existing customers, and working infrastructure.
Here is what I have learned about buying SaaS under $50K.
Why Sub-$50K SaaS?
This price range is the sweet spot for individual buyers:
- Affordable without investors
- Small enough to operate solo
- Often overlooked by funds (less competition)
- Real revenue from day one
According to industry data, SaaS M&A transactions hit 2,698 in 2025 — a 28% jump from the year before. The sub-$50K segment is growing fastest.
Where to Find Deals
ExitBid — Auction marketplace with only 14 verified listings at a time. Every listing is reviewed. 5-day auctions create transparent price discovery. Buyer verification required.
Acquire.com — Largest SaaS-specific marketplace. Free to browse, buyer subscription for full access.
Flippa — Broadest selection including non-SaaS. More filtering required.
What to Look For
Must-haves:
- Verified MRR (Stripe screenshots or TrustMRR data)
- Monthly churn under 5%
- Clean codebase with documentation
- Less than 10 hours/week maintenance
Red flags:
- Revenue spikes from one-time deals
- Single customer > 30% of revenue
- No analytics or tracking
- Owner refusing to share code before close
Full checklist: SaaS Due Diligence Checklist
Expected Multiples
At the sub-$50K level:
- $500-$1K MRR: 2-3x ARR ($12K-$36K)
- $1K-$3K MRR: 2.5-3.5x ARR ($30K-$126K)
Estimate any business: Free Valuation Calculator
The Buying Process
- Browse and shortlist 3-5 businesses
- Request detailed metrics (MRR, churn, traffic)
- Technical review (code quality, dependencies)
- Make offer or bid
- Due diligence period
- Escrow payment → asset transfer
Full guide: How to Buy an Online Business
First 30 Days After Purchase
- Change nothing for the first week
- Understand every customer touchpoint
- Map the full tech stack
- Identify quick wins (pricing, conversion)
- Set up your own monitoring
Buying a SaaS is not passive income — it is buying a job you love with built-in customers.
