Are you considering exiting your micro SaaS in 2023? Here are some market insights from last year:

If you're considering exiting your micro SaaS in 2023, it's essential to keep an eye on the market and consider your options carefully. The past year has been turbulent for the SaaS public market, with projections looking poor for fundraising in 2023. Despite this, M&A activity was still strong in 2022, with a 21% increase in total deals.

Of the M&A deals in 2022, 59% were from private equity firms, indicating that there was still a significant amount of money available for SaaS investments. However, EV/Revenue multipliers in M&A transactions decreased by 1.7% from 7.3% in 2021 to 5.6% in 2022. This decrease indicates that the market is starting to normalize, and that the high valuations that characterized the public and private markets in 2020 and 2021 are unlikely to continue.

A 58%/42% split between horizontal and vertical SaaS was observed in 2022, an increase from the typical 60/40 split. This shift is likely due to the changing needs of businesses during and after the pandemic. The largest and most notable deal of 2022 was Adobe's acquisition of Figma, which was valued at $3.75 billion.

If you're considering exiting your micro SaaS in 2023, it's important to keep in mind that the market may not be as favorable as it was in 2020 and 2021. As EV/Revenue multipliers continue to decrease, it will eventually reach the lower private market and all the way down to the micro SaaS level. This trickle-down effect means that what was once a seller's market may quickly shift, so careful planning will be essential.

Depending on your revenue, one strategy for maximizing your exit in 2023 is to focus on M&A deals with private equity firms, but if your revenue is south of $500k ARR then using sites like Acquire.com is probably your best route. Using acquire.com can allow you to perform the transaction alone, but don’t be frustrated by a transaction taking some work. I read about people selling their applications within a day, but that won’t be everyone. No matter what route you take, speaking with an advisor can always be helpful.

Another option is to wait until the market stabilizes before considering an exit. While this may mean waiting for a few years, it will likely result in a better price for your micro SaaS. Additionally, you can use this time to improve your product, increase revenue, and build a stronger customer base, all of which will make your business more attractive to potential buyers in the future.

Ultimately, the decision to exit your micro SaaS in 2023 should be based on your business's individual circumstances and goals. Keep an eye on the market and make decisions based on what is best for your business in the long run. By doing so, you can ensure that you make the most out of your exit strategy, whether you choose to sell your business now or wait for a better opportunity in the future.