Mergers and Inquisitions

MARCH 13, 2024

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. Most companies are already profitable, the potential returns are lower, and there’s usually a large secondary component (i.e., Many hedge funds also joined the party.

Private Equity 105

Private Equity Equities Capital Portfolio 105

iMerge Advisors

APRIL 9, 2025

Profitability and Margins While some buyers prioritize growth over profits, especially in earlier-stage deals, strong gross and EBITDA margins still matter. As of early 2024, private software company valuations have moderated from the 2021 peak but remain healthy. They indicate operational discipline and scalability.

Sale 40

Sale Valuation M&A Discounted Cash Flow 40

Mergers and Inquisitions

NOVEMBER 20, 2024

Plausible Unit Economics – Many growth companies lose money early on, but there must be a path to profitability. You could still use a DCF , but it would have to go far into the future (e.g., If the company can’t even make money on each unit sold (i.e., healthy gross margins ), this will be very difficult.

Private Equity 59

Private Equity Equities Capital Valuation 59