Hey everyone,I have heard from a former colleague that the business I used to be a developer at is going bust and will be closing on Dec 31st. One of the things they will be liquidating is their SaaS for $40k.I own a corporation I've been depositing freelance software contract work into which has a balance of $30k in it. As weird as it feels buying software that I mostly built, 1. I'm not just buying the software I'm buying the $12k of revenue / $6k of profit monthly which consists of the SaaS's current client book, and 2. Well, I know the tech stack super well so no surprises there.Now, one main client might be ending their use of the software reducing the income to $4k, which is a bummer. My first act after buying it would be to attempt damage control and see if I can get them to stay. Not only do they represent an extra $2k of income but they are one of the biggest names in the industry that uses the SaaS, making it a nice client to be able to have reputation wise.I was thinking to offer $10k down, and $10k additionally every month for 3 more months, paying for the sale of the software partially through the money in my bank account, and partially through future cash flows of the company. By my estimate as long as the whole SaaS doesn't flop it should pay for itself within 7 - 10 months. My big hesitation is that the SaaS is in a competitive market, but the software has been chugging along for 4 years now with relatively stable revenue for the past year, and I reckon it could keep chugging along, every year it keeps going is another 120% earned on my investment is the idea. I don't see it having a super bright future so I wouldn't invest a lot in it, but the risk reward seems attractive even running it into the ground.Was hoping to hear input from any software investors, or maybe just generally bankruptcy investors, trying to consider all bases before putting in my offer see hubwealthy.com/wealthy
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