David Jacobs

Clean professional infographic titled “Is This Founder-Owned Software Company Ready for an Exit Process?” featuring five columns labeled Founder Readiness, Earnings Quality, Transferability, Buyer Story, and Diligence Readiness, with David Jacobs branding at the bottom.

How to Tell if a Founder-Owned Software Company Is Ready for an Exit Process

Exit Process, Insights for Advisors

How CFO Firms, CPAs, and M&A Attorneys Can Recognize When a Founder-Owned Software Company Is Ready for an Exit Process When a founder-owned software company starts talking about a sale, the first question is usually valuation. That is understandable, but it is rarely the most important question at the start. The more important question is […]

How to Tell if a Founder-Owned Software Company Is Ready for an Exit Process Read More »

illusion of buyers private company acquisition buyer pool chart

The Illusion of Buyers When Selling a SaaS Company

Exit Process

The Illusion of Buyers When Selling a SaaS Company Many founders believe there are thousands of buyers for their company. They receive inbound emails from investors, private equity associates, and corporate development professionals asking to “learn more about the business.” Introductory calls happen.  Financial information is requested.  Sometimes, a detailed financial model is even built.

The Illusion of Buyers When Selling a SaaS Company Read More »

Impact of discount rate changes on lower middle market SaaS valuation using DCF analysis

From Spreadsheet to Wire Transfer: Why SaaS Transaction Prices Differ from Financial Valuations

Insights for Advisors

In the $3–20M SaaS market, valuation tension rarely comes from bad math. More often, it comes from a shift in context. I’ve seen situations where a founder receives a thoughtful, well-supported valuation for planning or tax purposes.  Months later, when they begin exploring a sale, the live offers don’t match that earlier number.  That moment

From Spreadsheet to Wire Transfer: Why SaaS Transaction Prices Differ from Financial Valuations Read More »

Infographic comparing shallow SaaS vs embedded SaaS, showing CRUD dashboards and add-ons as easily replicated versus systems of record and workflow engines as hard to replace.

The Death of Shallow SaaS: How AI Is Repricing Software Valuations

Deal Terms, Valuations

The Death of Shallow SaaS Over the past few months, public software stocks have sold off sharply.  Some commentators have labeled it a “SaaS-pocalypse.” That framing is dramatic.  It’s also misleading. SaaS is not dying.  But a certain type of SaaS is under real pressure. What we’re seeing is not the end of software.  It’s

The Death of Shallow SaaS: How AI Is Repricing Software Valuations Read More »

a fork in the road

A Tale of Two Offers: How One Software Company Doubled Its Valuation

Deal Terms

 A successful software entrepreneur received a phone call that seemed like it might change everything. On the other end of the line was a representative from a large technology consolidator—one of those companies known for snapping up smaller firms and rolling them into its growing empire. The entrepreneur, caught by surprise, agreed to hear them

A Tale of Two Offers: How One Software Company Doubled Its Valuation Read More »