“How profitable is your software business?” It’s a simple question, but it’s not always easy to answer. Nevertheless, profitability is a critical measure of success that any business owner should understand and be able to communicate. Profitability, aka EBITDA, is even more important if you want to attract new investors
View PostToday’s SaaS leaders and their teams are tasked with the crucial responsibility of creating sustainable avenues to drive growth. Growing revenue is challenging enough but doing it at scale and efficiently is an entirely different obstacle, and one that sales & marketing leaders face daily. No matter what stage your
View PostEarly-stage software businesses may reach a point where they seek resources to help accelerate growth and execute business goals. There are several resources for growth capital: debt from a lender or financial institution, minority equity financing, or majority equity financing through a control transaction. Each method offers different benefits; finding
View PostThe public markets may have taken a beating, but behind the gloom-and-doom headlines, there was still plenty of good news for private SaaS companies in 2022. On the surface, things looked rough: the Dow Jones, S&P 500, and the NASDAQ all finished the year with significant losses, with tech stocks
View PostMany software entrepreneurs question the value of hiring an M&A advisor. As ambitious and challenge-oriented people, they feel capable of running a process themselves. They may think pitching their business to potential customers on a regular basis gives them the experience needed to win over buyers in an M&A process.
View PostWho you hire has a big impact on your company. When you get key hires right, it can take your company to new heights. That’s why, when someone is interested in buying your company, it is paramount for them to understand the strengths of the team, as they are ultimately
View PostMaking the decision to sell a company is a big one. It’s a bit like a marriage – from initially meeting potential partners to making the decision to commit to just one, it can be a complex and emotional process. Selecting a partner is a big milestone that marks the
View PostAs a tech entrepreneur, you know a big liquidity event for your company can be life-changing. Because of the potential upside, it might be tempting to start looking for a potential buyer before your company is really ready. To achieve your goals and get the most value for your company,
View PostDo you have an exit strategy in place? The best time to begin planning for an exit is well before an offer comes in, but it can be hard to focus on planning for it when software CEOs and founders are in the process of building a great company. While
View PostFor SaaS companies seeking to sell or raise capital, growth is a major component of valuation. Revenue and ARR growth are a function of how effective your sales model is or the return on your sales and marketing spend. Sales efficiency is particularly important in M&A because it indicates the
View PostAs a software operator, you know how difficult it is to achieve growth milestones while losing revenue from existing customers. Customer churn puts a strain on the sales team to outperform so that the company can maintain growth. This is why it is crucial for operators to closely track and
View PostLTV:CAC is considered one of the most critical metrics for valuing SaaS companies. Investors place a high focus on this metric, as it indicates good growth potential with limited marketing investment. Companies with lower LTV:CAC ratios indicate to investors that capital required to acquire new customers may not be utilized
View PostSoftware executives are experts at operating their businesses, but when it comes to M&A and financial terminology, there is a hefty amount of jargon. Keeping on top of industry terms is helpful in discussions with advisors, buyers, or investors, especially when going through an M&A process. SEG created a cheat
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