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Summary of: Asset Sale vs. Stock Sale: What Tech Founders Need to Know When a technology company enters M&A discussions, one of the earliest and most consequential decisions is whether the transaction will be structured as an asset sale or a stock sale. Defining the Structures What Is an Asset Sale?
A Strategic Guide for Founders and CEOs For software founders contemplating a sale, the question of valuation is often the firstand most complexhurdle. Understanding the Core Valuation Framework At its core, software company valuation is typically based on a multiple of earnings or revenue.
The following article examines valuation multiples for registered investment advisor (RIA) firms as of 2024, based on data gathered from our SF Index and available third-party sources. How these client demographics affect RIA valuations really depends on what the buyer is looking for, as indicated by the table below.
The following report contains our projections for Q3 2024 insurance broker valuation multiples. Insurance Broker Valuation Multiples: Q3 2024 Projections Using these numbers as a baseline, let’s examine the insurance industry more closely to identify influential factors behind its specific changes.
Know the timeline After a sale, buyers often expect you to stay on for one to two years as an employee or consultant. Missing this detail could complicate or kill the deal, delay your plans, or reduce the sale price. Corporate structure Whether youre a C-Corp or S-Corp can affect taxes at sale. This derisks the org.
For software and technology founders considering a sale, the CIM is a strategic asset that can shape buyer perception, drive valuation, and accelerate deal momentum. For buyers, its the foundation for initial valuation modeling and due diligence planning. But what exactly should a CIM include?
If your product incorporates open-source components especially if youve fine-tuned or modified them its critical to understand the licensing implications and how they may affect your valuation, deal structure, or even deal viability. Without clear ownership, you cant transfer rights in a sale.
As we project toward 2025, this sector is poised to sustain its robust performance, driven by substantial investor interest and the opportunities presented by a highly fragmented market. In 2025, investors are expected to focus increasingly on companies that enhance operational efficiencies within the education sector.
Well also explore how early preparation in these areas can materially impact valuation and deal certainty. A well-documented compliance program can enhance buyer confidence, reduce indemnity holdbacks, and even justify a premium valuation. Buyers will compare this to your internal procedures.
A Strategic Guide for Founders and CEOs For software founders contemplating a sale, the first and most pressing question is often: What is my software company worth? Understanding the Core Valuation Framework At its core, the valuation of a software company is typically based on a multiple of earnings or revenue.
Whether you're a SaaS founder contemplating a strategic sale, a private equity firm seeking a bolt-on acquisition, or a CEO navigating unsolicited interest, choosing the right M&A advisor is a critical decision one that should be informed by more than just brand recognition. Are they aligned with your goals?
Whether you're a SaaS founder contemplating a strategic sale, a private equity firm seeking a bolt-on acquisition, or a CEO navigating unsolicited interest, choosing the right M&A advisor is a critical decision one that should be informed by more than just brand recognition. Are they aligned with your goals?
What You Might Be Overlooking Before a Sale As a founder preparing for a potential exit, one of the most common and consequential questions youll face is: Do we need audited financials or GAAP-compliant statements before going to market? A well-documented EBITDA bridge can materially impact valuation.
For many founders, the sale of a company is the culmination of yearssometimes decadesof work. Final Tax Filings and Capital Gains Reporting One of the most immediate post-sale obligations is reporting the transaction to the IRS and your state tax authority. Be sure to consult a tax advisor familiar with your jurisdiction.
This guide walks you through the full lifecycle of a software company sale, from preparation to closing, with insights tailored to SaaS, cloud, and enterprise software businesses. Do you want to stay on post-sale or transition out quickly? Your answers will shape the deal structure, buyer pool, and valuation expectations.
It covers the latest M&A transactions, provides a data analytics market map, updates on industry size and growth data, and publicly traded companies and valuations in the sector. has advised on the sale of 6 data analytics software and services firms. Solganick & Co. billion—with a CAGR of 12.7% until 2030.
This guide walks you through the full lifecycle of a software company sale, from pre-market preparation to post-closing transition. Do you want to stay on post-sale or transition out quickly? Are you optimizing for valuation, cultural fit, or speed? Understand What Your Company Is Worth Valuation is both art and science.
But with the right preparation and advisory support, the timeline can be managed strategically to align with your goals whether thats maximizing valuation, minimizing disruption, or closing before year-end. Deal Structure Asset sales vs. stock sales, earn-outs, rollover equity, and working capital adjustments all add complexity.
A Strategic Guide to Valuation For software founders and CEOs, few questions carry more weight than: What is my software company worth? Whether you're contemplating a full exit, raising growth capital, or simply planning ahead, understanding your companys valuation is foundational to making informed strategic decisions.
Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series) –>> If you want to learn Financial Modeling & Valuation professionally , then do check this Financial Modeling & Valuation Course Bundle ( 25+ hours of video tutorials with step by step McDonald’s Financial Model ).
I hope 2024 treated you and yours incredibly well, and I’m looking forward to an even better year in 2025. The focus of the collision vision in 2025 is to double down on the most important and timely topics in the collision repair business and to triple or even quadruple down on offering actionable insights for your business.
until 2025 [2]. billion in sales annually in the U.S [4]. Turmeric and curcumin sales have been a burgeoning and extremely researched market over the last 5 years [5] [6]. billion of annual sales revenue [8]. What was the premium above the 2016 valuation? They account for $3.67 EBITDA multiple.
Whether you're responding to inbound interest, planning a strategic exit, or exploring liquidity options, the process requires careful orchestration from valuation and positioning to buyer outreach and deal structuring. Prepare the Business for Sale Preparation is where value is either created or lost.
The rise of plant-based alternatives has impacted traditional dairy sales, but the industry remains strong. The North American ice cream market is currently valued at $22 billion in retail sales, with a projected growth rate of 3.4% The ice cream division, which posted sales of $8.57 CAGR through 2027. It saw growth of 0.6%
This article outlines the key regulatory hurdles in cross-border M&A for tech companies, with a focus on how they impact deal structuring, valuation, and execution timelines. These restrictions can affect not only deal feasibility but also valuation. In the U.S.,
Jenkins told The Times earlier this year that he wants to take the business from having a handful of clients now to somewhere between 15 and 20 clients by the end of 2025. In February 2022, GoCardless announced a Series G funding round of £254m ($312m), making it the latest European and UK tech unicorn with a valuation of £1.7bn ($2.1bn).
Some of his firm’s notable M&A transactions include Accenture’s acquisition of Nexira, Pandera Systems merger with 66 Degrees, Waypoint Consulting’s sale to WIPFLI, Visual BI’s sale to ATOS, as well as Flagship Solutions Group’s merger with Data Storage Corp, and others within the technology sector.
“We don’t really expect that to start bearing fruit from the phase-downs until the middle of 2024, but it should lead to a significant uptick in unit volumes in the back half of 2024 and through 2025 to 2026,” Lee said. platform Master Group’s acquisition of Valley View, Ohio-based HVAC distributor Refrigeration Sales Corp.
Core Components of a Closing Binder Though the exact contents may vary depending on deal structure (asset vs. stock sale), jurisdiction, and industry, most closing binders for startup acquisitions include the following categories: 1. key customers or licensors) Waivers of rights of first refusal, co-sale rights, or drag-along provisions 3.
Here are the highlights of the report: Transaction volume and valuation multiples for technology services companies has remained solid during the first quarter of 2024, continuing to exceed pre-pandemic levels in aggregate. Managed Services Providers (MSPs) The managed services provider (MSP) industry saw strong M&A activity in Q1 2024.
Some PPMs have gotten very large, with partnerships across a broad geographic area and valuations likely north of $1B. Our Expectations in 2024 and 2025 Generally, many of the largest and most desirable ophthalmology practices have gone to market and been acquired. For example, all affiliated practices are in the Southeastern US.
Prematurely disclosing a potential transaction can create unnecessary turbulence especially in high-talent environments like SaaS, where key engineers or sales leaders may interpret the news as a signal to explore other opportunities. According to PwC , nearly 50% of announced M&A deals fail to close.
As an example, he offered a hypothetical single shop doing $3 million in sales at a 10% EBITDA (earnings before interest, taxes, depreciation and amortization) margin. In the most recent results from 2023, Gerbers sales were $2.9 That valuation, depending on how you look at it, boils down to 193% of sales, or about 15 times EBITDA.
If your codebase includes controlled encryption algorithms or your platform is used in defense-adjacent applications, the sale may require export licenses or carve-outs to exclude sensitive assets from the transaction. As we discussed in How Do I Handle Customer Contracts During the Sale of My Software Business?
Key negotiation points include: How deferred revenue is treated in working capital Whether it reduces the purchase price or is excluded from NWC How revenue recognition policies align with GAAP or buyer standards Misalignment here can lead to double-counting or undercounting revenue, which may trigger last-minute valuation disputes.
C Corps are favorable for stock sales, making them ideal for larger exits. However, they may be less advantageous for asset sales due to double taxation. Assuming your shares meet these QSBS requirements, you must hold them for at least five years to exclude your gains on the sale.
Her nominator explains, “Women make up 50% of Bravo’s Executive team, 75% of Bravo’s sales team, and 42% of all Bravo’s full-time employees.” Their platform assists businesses in managing inventory, sales, and customer transactions.
Her nominator explains, “Women make up 50% of Bravo’s Executive team, 75% of Bravo’s sales team, and 42% of all Bravo’s full-time employees.” Their platform assists businesses in managing inventory, sales, and customer transactions.
Her nominator explains, “Women make up 50% of Bravo’s Executive team, 75% of Bravo’s sales team, and 42% of all Bravo’s full-time employees.” Their platform assists businesses in managing inventory, sales, and customer transactions.
Individual Tax Rate Increases Currently, the top marginal individual income tax rate is 37% until after December 31, 2025, when the top marginal tax rate will be increased to 39.6%. However, we expect that there will be lots of negotiating over the fiscal 2024 budget, so one or more of these proposals may find their way into the final budget.
About Sun Acquisitions Sun Acquisitions is a premier mergers and acquisitions firm dedicated to assisting clients with confidential sales, acquisitions, and valuations of privately held companies.
In 2025, the landscape of business sales is evolving, with shifting buyer expectations, regulatory updates, and economic factors playing a significant role in how deals are structured. It is not as simple as listing a business for sale and waiting for offers.
In 2025, digital tools, artificial intelligence, and automation are making transactions faster, more efficient, and more secure. Sellers and buyers now expect data-driven insights, real-time valuations, and digital platforms that streamline business sales.
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