Successful Acquisitions

SEPTEMBER 11, 2023

The Verdict is In on the Sell Side: Business Valuation Basics By Brian Goodhart Valuation is a fundamental aspect of the complex and intricate world of mergers and acquisitions. Today, we will delve into the intricate art and science of valuation, exploring its various components and purposes.

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Software Equity Group

MAY 8, 2024

But what are the key influences shaping valuation multiples in today’s M&A deals? As you contemplate your exit strategy, it becomes increasingly crucial to understand the external factors driving the valuation of your SaaS company. In other words, they placed a high value on profitably growing targets.

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Software Equity Group

MAY 7, 2024

But what are the key influences shaping valuation multiples in today’s M&A deals? As you contemplate your exit strategy, it becomes increasingly crucial to understand the external factors driving the valuation of your SaaS company. In other words, they placed a high value on profitably growing targets.

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CNBC: Investing

MAY 1, 2024

Tony Zhang sees further downside in many of the AI-focused stocks and explains how to trade it using options.

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Sun Acquisitions

SEPTEMBER 30, 2024

As you meticulously evaluate financial statements, assess market conditions, and fine-tune your pitch, it’s crucial not to overlook the less conspicuous elements that can significantly influence your business’s valuation in mergers and acquisitions (M&A).

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Software Equity Group

OCTOBER 22, 2024

The difference pays off in higher valuations: Companies that can retain and grow within their customer bases, particularly in the face of a recession, are rewarded with higher multiples. Because in a world where growth is uncertain, retaining and expanding existing customers is the ultimate competitive advantage.

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Chesapeake Corporate Advisors

FEBRUARY 9, 2023

Key Figures That Impact Valuation A business with growing revenue will surely attract buyers at a good price, right? Various factors impact your business valuation. Simply growing your top line revenue isn’t enough to ensure a high valuation and a good offer. Company A’s gross profit is $2,000,000 higher than Company B’s.

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How2Exit

NOVEMBER 18, 2024

Consistent Growth : Premium valuations in company sales hinge on predictable revenue and growth, amid a booming market. Wagner shared multiple examples of businesses thriving in ordinary industries, often unnoticed by the mainstream but profitable nonetheless. E257: What Does It Take to Close a Deal?

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Sica Fletcher

MARCH 14, 2024

Insurance agency valuation is a critical component of running an M&A deal, but executing this multi-step process well requires a great deal of specialized education and experience. In addition, getting the valuation process started demands a hefty bill and entails poring over extensive documentation for several weeks.

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Software Equity Group

DECEMBER 18, 2023

Given geopolitical instability, high interest rates, and the perception that B2B SaaS valuation multiples are declining, it is no great surprise that many founders interested in pursuing a transaction are considering delaying a liquidity event. Continue reading to learn more about what is driving today’s B2B SaaS valuation multiples.

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Global Banking & Finance

SEPTEMBER 24, 2024

EPS represents a company’s profitability on a per-share basis, giving investors a snapshot of the company’s financial health and its […] In stock markets, a key question often arises: how can investors evaluate whether a company’s stock is worth buying?

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Francine Way

JUNE 22, 2020

To pick up where we last left off with valuation, I will cover the topic of a Merger Relative Valuation in this blog post and move on to other non-valuation topics from here. It has been roughly three years since my last blog post at the completion of my fellowship. Time certainly did fly by when one was having fun.

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Software Equity Group

FEBRUARY 28, 2023

Our report provides context for private companies to better understand factors influencing their valuations and evaluate how they can position themselves within a changing marketplace. This post will examine the current state of public SaaS company valuations and what it means for private companies. What is the SEG Index?

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Francine Way

JULY 18, 2017

For this valuation post, I wanted to talk about a valuation method that is making its way out of academia and into the real world, a method that is gaining popularity in the world of portfolio management. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.),

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Sun Acquisitions

JUNE 11, 2024

However, with the right mindset and strategic approach, entrepreneurs can maximize the profitability of their business sales. Strategic Preparation: Lay the Foundation for Success A profitable business sale begins long before the negotiations start. Their expertise can drive a profitable deal and address unforeseen challenges.

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Software Equity Group

DECEMBER 21, 2023

Here’s a closer look at what the future looks like for the SaaS M&A market and its valuation multiples. Forty-one percent said they’ve seen either no change or an increase in valuations since 2022 for the high-quality assets they are targeting, and nearly 50% said they expected to see valuations increase in 2024.

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Focus Investment Banking

APRIL 7, 2024

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. Impact on Business Valuations: The fluctuation in interest rates not only influences PE activities but also affects how businesses are valued.

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Sun Acquisitions

MAY 15, 2023

Here is a beginner’s guide to understanding valuation for family businesses. Identify Your Valuation Goal: Before getting started, you must identify the overall objective you are trying to achieve with this process. Doing research ahead of time will help determine which valuation methods are best suited for your needs.

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Lake Country Advisors

OCTOBER 17, 2024

A broker can offer valuable insights into buyers’ expectations and help position your business for a faster and more profitable sale. Income Statements : Provide a clear snapshot of profitability by detailing revenue and expenses. Professional Business Valuation Getting a professional business valuation is highly recommended.

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Devensoft

AUGUST 22, 2023

Navigating M&A valuations with precision is paramount for informed decision-making. Our guide equips you with step-by-step instructions on employing the Enterprise Value Calculator effectively, complete with insights into optimal practices for precision valuations. Let’s dive into the intricacies of this invaluable resource.

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How2Exit

OCTOBER 7, 2024

With a background in finance and accounting from his time at Deloitte, Ryan has built his expertise in business valuation. He is the founder of Peak Business Valuation, a firm dedicated to providing independent third-party valuation services for SBA lenders and individuals.

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Software Equity Group

NOVEMBER 13, 2023

In 2022, investors and buyers were keenly focused on gross revenue retention (GRR) and gross profit margin (GPM) as top metrics to target. Gross Revenue Retention & Gross Profit Margin: The Slight Shift As of this blog’s update, we have published our 2023 State of SaaS M&A: Buyers’ Perspectives Report.

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Focus Investment Banking

MARCH 24, 2024

In the dynamic realm of direct-to-consumer (DTC) businesses, a clear hierarchy emerges in private equity valuations, largely based on the perceived stability, scalability, control over supply chains and customer experiences. The hierarchy in DTC business valuations reflects a balance between risk and reward.

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Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. However, company valuation isn’t as simple as slapping a price on your business. It’s a delicate balancing act, as inaccurate valuations have polarizing consequences.

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Francine Way

JULY 12, 2017

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Calculate the Equity Value and the per-share Equity Value - this number would serve as the base case share price valuation.

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Wizenius

JUNE 25, 2023

As an investment banking analyst, the selection of comparable companies for a valuation analysis is a crucial task that requires careful consideration and justification. Consider factors such as revenue, profitability, growth rates, margins, and capital structure. Take your career to new heights in the dynamic world of finance.

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Software Equity Group

NOVEMBER 12, 2024

The Profit and Loss (P&L) Statement is a universal fixture of business finance, but it takes on special significance for companies in the Software industry. A well-constructed SaaS P&L can reveal insights executives need to fully understand their business performance and make well-informed strategic decisions.

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Sun Acquisitions

MARCH 8, 2022

Sun Acquisitions is pleased to announce the successful acquisition of a profitable residential landscaping business, American Lawn & Landscape Co. We work with clients that are interested in the confidential sale, acquisition or valuation of privately held companies. The business is based in the Greater Chicago area.

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Software Equity Group

JUNE 10, 2024

The “Rule of 40” in SaaS valuations is a rule of thumb used to assess a company’s financial health and growth potential. This rule helps buyers and investors evaluate whether a company is effectively balancing growth with profitability. Profitability : We prefer EBITDA as the standard measurement here.

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MergersCorp M&A International

NOVEMBER 1, 2024

A common approach to valuation is to consider the fee structure: AMCs may charge a percentage of AUM (often ranging from 0.5% Net Income and Profit Margins: Net income provides insight into the profitability of the business. Here’s a detailed examination of how to value an AMC.

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Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time. But outside of those, its status is murkier.

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Sica Fletcher

SEPTEMBER 17, 2024

When insurance agency sellers have already met with prospective buyers, they may have been offered a valuation based on their “adjusted EBITDA.” The following article provides a brief overview of EBITDA and adjusted EBITDA valuations for insurance agencies. What Is EBITDA? What Is Adjusted EBITDA?

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Sica Fletcher

APRIL 30, 2024

This article presents a step-by-step guide on how to value an insurance agency - both in the sense of how a valuation agency/M&A advisor goes about valuation, and also in terms of what insurance agency owners can do to maximize their valuation prior to running an M&A deal.

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Growth Business

OCTOBER 25, 2024

The stake will depend directly on the amount you want to raise compared to your business’s total valuation. In my experience, with eight years as a mid-market M&A advisor, SMEs traditionally trade for between four and seven times their profitability.

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Beyond M&A

SEPTEMBER 18, 2023

It’s not just about the business’s direct profitability but the sustainability of that profit in an increasingly digital realm. For the discerning investor, it’s essential to understand that cybersecurity isn’t just a tech challenge; it directly influences a business’s valuation, growth potential, and long-term viability.

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Focus Investment Banking

NOVEMBER 18, 2024

The reasons for this influx of investment activity are well documented but include: the industry’s attractive profit margins; market fragmentation; POS systems adoption to substantiate the “cash” portion of the business; and a recurring revenue subscription model – all combined with a low interest rate environment created a perfect storm.

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Focus Investment Banking

MAY 23, 2024

The worth of a business, or valuation, is primarily based on EBITDA (Earnings before Interest, Taxes, Depreciation, & Amortization). companies, but it is how buyers in most industries determine the “true profitability” of any business. Both involve finding your gross profits and subtracting expenses and taxes as outlined below.

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