Author: Molly Soltesz

How to Prepare an Exit Strategy: A Guide for SaaS Founders

The following content has been refreshed as of February 2024. Building and scaling a successful SaaS business is a tremendous achievement in itself. But the time may come when you want to reap the rewards of your hard work and achieve some liquidity by selling a significant portion, or all,

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What Your SaaS Company’s Bridge Analysis Tells Potential Buyers

In previous posts, we discussed the importance of understanding ARR and how to properly calculate customer and ARR churn. In this post, we’ll explain how viewing these metrics in conjunction with each other can provide vital insights into your company, potentially having a tremendous impact on future operations. We can

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The SaaS Prescription: Healthcare Trends and M&A Insights

Few would disagree the American healthcare sector faces a great many challenges in terms of accessibility, affordability, and quality of care. Digital transformation is central in streamlining many healthcare processes, simplifying the consumer experience, and driving down costs across the board. Healthcare SaaS solutions serve as the interface to make

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How To Leverage SEG’s SaaS Index™ Tool

Success in the SaaS industry depends on more than just a strong product. For SaaS company leaders, benchmarking—the comparison of performance metrics across companies within the same industry—provides a way to understand their own company’s performance in the context of the broader industry and within their specific verticals. By enabling

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7 Reasons to Hire an M&A Advisor When Selling a Software Company

As one can imagine, selling a software company poses significant challenges. The endeavor demands substantial time and effort, burdening decision-makers and the wider management team. The pressure to execute the transaction flawlessly adds an intense layer of stress. Complicating matters further is that when those involved in the M&A process

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The Impact of Gross Margin on SaaS Valuations

“Gross margin” is likely a term you’ve heard floating around the SaaS industry, and for a good reason: it serves as an essential metric for businesses in the software space. Sometimes referred to as gross profit margin (GPM), gross margin on sales, or gross margin percentage, gross margin serves as

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The Essential 6 Factors for Software Founders Planning an Exit

When it comes to evaluating a software company, PE investors and strategic buyers focus on certain criteria that can make or break a deal. These six factors we're about to delve into are not just essential considerations; they are the very yardsticks that potential acquirers use to gauge the value

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Understanding the SaaS Financial Model: Key Concepts and Methods

Most SaaS founders have a clear vision for their business. They are focused on creating new products, finding new markets, and attracting new customers. However, there may be a significant gap between the vision itself and the tangible data that will allow them to articulate where they are going—and convince

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