2025, Discounted Cash Flow and Financial Modeling

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

iMerge Advisors

APRIL 9, 2025

Discounted Cash Flow (DCF) : A more theoretical approach, used less frequently in lower middle-market deals due to its complexity and sensitivity to assumptions. Firms like iMerge specialize in helping software founders prepare for exit, from financial modeling to buyer outreach.

Valuation

Valuation M&A Profitability Discounted Cash Flow

What is my software company worth?

iMerge Advisors

APRIL 9, 2025

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.

Valuation

Valuation M&A Discounted Cash Flow Business

Investment Banking Today

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

What is my software company worth?

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