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What are the key financial metrics buyers look for in a software company?

iMerge Advisors

Discounted Cash Flow (DCF) : A more theoretical approach, used less frequently in lower middle-market deals due to its complexity and sensitivity to assumptions. Buyers apply a multiple to your trailing twelve-month EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

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How do I structure the sale of my software company to minimize taxes?

iMerge Advisors

For a deeper dive into valuation methodology, see our article on Business Evaluation Methods.

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What is my software company worth?

iMerge Advisors

Discounted Cash Flow (DCF): Useful for businesses with predictable cash flows, though less common in early-stage or high-growth SaaS due to forecasting uncertainty. EBITDA Multiples: More common for mature, profitable software businesses.