Our perspectives on exiting, fundraising, M&A and operations.
Exiting and fundraising tips, M&A insights and more.
The decision comes down to what is expected to change over the period.
AI is making software easier to build, but so far this does not appear to be causing businesses to replace SaaS products with internally developed software at scale.
Some customers can remain profitable on an individual basis while making the wider business appear less profitable and less attractive to a buyer.
In this case study, we explore how preparation work allowed us to justify a higher valuation (ultimately securing a 7.5x EBITDA multiple).
The most useful changes are generally those which move responsibility away from the founder, reduce exceptions and standardise processes which currently depend on individual knowledge.
Debt financing works best for businesses that have reached stable revenue, maintain high-quality customer relationships, and keep a clean, well-managed balance sheet.
Working capital often receives less attention until the purchase agreement is being negotiated, despite having a direct impact on proceeds.
Key figures will shape the initial view on valuation, risk and whether the opportunity is worth pursuing.
As adjusted EBITDA is one of the most important metrics buyers and investors will look at when calculating a valuation, we explore in this post what you should add back and what you should avoid.
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