Acquire a mobile app development software company that is already getting revenue. Start getting profit since the very first moment.
Before deciding to acquire an app development company, there are a few things to consider. In this article, we will go through the main aspects you should keep in mind when you want to buy an app development company.
We are a mobile app development company, do not hesitate to contact us at acquisitions(a)abalit.org if you need more information about acquiring tech and software companies. You can also get in touch with us if you are looking for an app development company for sale, we are willing to help you.
If you want to acquire a software company, the first thing to decide is: which kind of software development should they carry? At Abalit Technologies, we suggest you to buy a software company focused on a very targeted niche. Why? Easy: it is faster to calculate its value, and you can also compare it to their competitors. Our recommendation is: look for a mobile app development company for sale.
The Software field is very wide and also very old. That's why we recommend you to acquire an app development company, because the app creation market is not saturated yet! There are still a lot of opportunities to explore, and acquiring a mobile app development company will allow you to get a high ROI which means that the payback will be really fast!
The location of a software development company is one of the key points when you want to invest in them. Software development companies are located in (almost) every corner of the world. Depending on the kind of software development company for sale that your are looking for, you will need to analyze which location gives them a better reputation and business opportunities.
App development companies for sale are better rated if located in Barcelona, because Barcelona is the Mobile World Capital, and the reputation you will get from an app creation company acquired in Barcelona is higher than in any other locations. Barcelona is also a great place to live in, and there are a lot of tech hubs which will help you grow your (newly) acquired business. Abalit Technologies is located in Barcelona, Madrid, London and New York, but most of our business comes from Barcelona!
If you want to buy a mobile app development business, you want to look for a high technology company. Mobile apps can be coded in a wide range of development languages, but most of them are either outdated or (and!) old-fashioned.
Our app development company is specialized in Google Flutter (for the frontend = app), and Laravel (for the backend = server side). We only hire developers that are able to learn and work with the latest coding technologies, which brings great projects to our customers. And of course, using Linux-based servers is a plus!
Now that you know that the best deal comes by acquiring a Barcelona based mobile app development company specialized in Google Flutter and Laravel, what comes next? There are a few important aspects that must be analyzed before you decide to acquire a software development company.
Get access to their balance sheets, as well as their operating accounts. Long story short, you want to take a look at their revenue, profit and of course EBITDA for the last 3 years at least. Yearly growth, % EBITDA over sales, ROI-ROE-ROA will be your best friends in the decision process to buy an app development company.
However, there is even more to look at: recurring revenue. App development companies' revenue mainly comes from one-time purchase (this is, developing the mobile app). But you also have to look at the recurring revenue, which will help you achieve a better IRR!
How is the company in terms of equity? And what about its liquidity? Having money in the bank is always great news, as well as being self-funded and having no debts. This is a great bonus when searching for a mobile app development company for sale.
Going straight to the business: EBITDA multiple are the best way to evaluate if you want to acquire a mobile app development company. Usually an EBITDA x12 is very close to the real value of the company, which matches REVENUE x 4 if % EBITDA over SALES is around 40%. This means that you will get your investment back really fast!
Does the company have any physical assets? Computers, office furniture, or even an office in property is also a plus when acquiring a software company. This adds an extra value to the deal.
Are apps developed by an in-house team? App development companies for sale that include an in-house team are also best rated as they offer a more stable working flow, as well as lower costs.
How long do projects last? It is better to carry shorter projects, as the payment comes faster and the risk of default is lower. This will also help you to launch projects faster and increase recurring revenue (hosting on servers + new on-demand functionalities).
If you have gone through this whole article, then, the answer is YES! You are committed to acquire a mobile app development company in Barcelona. You have all the information needed to valuate app dev companies: what are you waiting for? Contact us at acquisitions(a)abalit.org, and we will help you find a mobile app development company for sale in Barcelona that suits your needs.
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