Selling a solo AI-run business looks different. Here's the modern playbook.
Sell a solo-operated, AI-augmented business for a strategic price (5-10x SDE for profitable ops, 3-6x ARR for SaaS) without having a team to transition. Cover: valuation math, buyer types, due diligence prep, AI handover, earn-out structure.
AI CFO calculates SDE (seller's discretionary earnings) over last 12-24 months. For SaaS, calculate ARR, NRR, and growth rate. Benchmark against comps on Acquire.com, Flippa, and Empire Flippers. Write the one-page teaser: what it is, revenue, profit, why selling, asking price range.
AI Bookkeeper assembles clean P&L, balance sheet, cash flow for 24 months. AI CFO writes financial memo. AI General Counsel compiles contracts (hosting, domain, IP assignments, customer TOS). AI Data Analyst exports metrics dashboards (MRR/ARR curve, churn, CAC/LTV, cohorts). All in one Notion / Dropbox room.
AI BDR identifies 40-80 qualified buyers: strategic (competitors, adjacent tools), PE rollups (Tiny, SureSwift, Constellation, Saas.group), individual operators, marketplace listings. Personalized outreach with NDA + teaser. Run parallel, not sequential — creates competitive tension.
Goal: 3-5 LOIs (letters of intent) to pick the best price and terms. AI Scribe joins every diligence call and captures minutes. AI General Counsel flags red lines in each LOI (earn-out triggers, seller notes, working capital adjustments). You pick the buyer with the best total package, not just highest price.
Definitive agreement (APA or SPA). Pre-close: AI team training pack — document every workflow the AI team runs so the buyer's team can maintain or replace. Post-close: you typically stay 30-90 days transitioning relationships. The AI team can transfer with the business, reducing the founder-handover risk that kills 30-50% of solo acquisitions.
Clear answers about wallet credit, usage, subscriptions, and how Tycoon charges for work.
Standard multiples still apply (3-6x ARR for SaaS, 2-4x SDE for services/content, sometimes higher for strong brands). The AI-team aspect is mostly neutral or slightly positive — it reduces key-person risk if well-documented, but some buyers worry about model dependencies. Transparent documentation of the AI workflows raises valuation; treating it as a black box lowers it.
Four buyer types: (1) Strategic acquirers — competitors or adjacent tools, often pay highest multiples. (2) Micro-PE / rollups — Tiny, Constellation, SureSwift, Saas.group, 2-4x ARR typical. (3) Individual operators on Acquire.com / Flippa — often cash buyers at 2-3x SDE. (4) Former employees / contractors who know the business. Strategics usually pay most; micro-PE is fastest and cleanest.
For businesses over $2M: usually yes, M&A broker at 5-10% of deal value. For $500K-$2M: platforms like Acquire.com or Empire Flippers at 10-15%. Under $500K: DIY on Acquire.com with light legal help. The broker earns their fee by creating competitive pressure, which often adds 20-40% to the deal.
For solo businesses, prefer cash at close. Earn-outs rely on the buyer growing the business your way, which you don't control after closing. If unavoidable: cap earn-outs at 20-30% of total price, tie to metrics you can verify (revenue not EBITDA), max 24 month duration. Seller notes (you lend the buyer part of the price) should be secured against the company assets.
Cleanest: 30-60 days. Longer (90-180 days) for businesses with key customer relationships or complex tech stacks. An AI-documented operating system cuts transition time significantly — buyer's team can pick up the AI workflows without you having to teach them. Some solo operators report exits with 14-day transitions when the AI team did most of the institutional memory.