Many 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 Post2021 was an outstanding year for the software industry, as M&A activity and valuations broke records once again. SaaS deal volume grew an astonishing 40% in 2021, reaching nearly 1,800 transactions for the year. Equally impressive, the SEG SaaS Index median EV/Revenue multiple of 14.7x in 2021 was an all-time
View ResearchWho 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
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