Remove DCF Remove Middle Market Remove Profitability
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What are the key financial metrics buyers look for in a software company?

iMerge Advisors

The most common methodologies include: EBITDA Multiples : Often used for mature, profitable software businesses. Revenue Multiples : Common for high-growth SaaS companies, especially those reinvesting heavily in growth and not yet profitable. Profitability and Cash Flow While growth is important, buyers also value efficient operations.

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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

Most companies are already profitable, the potential returns are lower, and there’s usually a large secondary component (i.e., Financial Modeling: Like private equity, 3-statement models are common, as are valuations and DCF models , but LBO models are less common since not all deals use debt.

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The Full Guide to Healthcare Private Equity, from Careers to Contradictions

Mergers and Inquisitions

Upper-Middle-Market and Middle-Market Firms with Healthcare Teams – It’s the same idea, but they’re smaller and do smaller deals. Healthcare-Only Middle-Market Firms – They tend to specialize in specific verticals, and many are in the “lower-middle-market” category. Specifically, in the U.S.,

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Metals & Mining Investment Banking: The Full Guide to Ground Zero for the Energy Transition

Mergers and Inquisitions

Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below). Profits are based on the spreads between the cost of the raw materials (iron ore) and the finished products (steel). A recent mining deal , especially if the bank you’re interviewing with advised on it.