any acquisition entrepreneurs don't even attempt to buy a SaaS business.

And for 2 big reasons.

The primary reason is that they are perceived, not incorrectly, as too expensive.

SaaS businesses are characterized by an incredible trifecta:

1. ‍‍Strong tailwinds. (Software is eating the world.)
2. Recurring revenue.
3. Gross margins in the 70s, 80s, even 90s. It costs a relatively small percentage of revenue paid by a client to service that client.

And there are a couple other characteristics to love that aren't intrinsic to SaaS but true in many cases, like today's story:

1. They are virtual businesses that can be run from anywhere.
2. And the entire world is your talent pool, so even though software developers are expensive, they are plentiful.

‍So for all of these reasons, SaaS are coveted businesses to own, and multiples are high, sometimes eye-wateringly so.

And that makes them risky, not to mention unfinanceable with an SBA loan. (But not always — again, like today's story.)

OK, and the second reason that many entrepreneurs don't attempt to buy a SaaS business:

They aren't technical, so they worry about buying a business whose very product is lines of code. Fair enough.

But today's guest, Andrew Swiler, was undeterred by all of the above.

Andrew found a SaaS business doing $650k SDE, acquired it with an SBA loan, and all while living in Barcelona.

Now, as you'll hear, it's not actually a slam dunk. Andrew explains the nuances of SaaS, and how these businesses do have their weaknesses as well as their strengths.

Please enjoy this fascinating deal, story, and education in SaaS with Andrew Swiler, owner of Lanteria. 👇👇👇