Understanding what your business is truly worth is the starting point for any successful exit. This section explores how valuations are determined for software, SaaS, and service companies in the lower middle market, with a focus on real-world buyer behavior—not theoretical formulas.
These articles break down financial value versus strategic value, current market multiples, the impact of growth, churn, customer concentration, profitability, and owner dependence. You’ll also learn why comparable sales from the past 24–36 months matter, how interest rates influence valuations, and what buyers look for when assessing risk and return.
My approach emphasizes clarity and realism. A credible valuation helps set expectations, attracts qualified buyers, and positions your company for competitive offers. Use these resources to understand how your business will be viewed in the market—and what adjustments or improvements can meaningfully increase its value before you go to market.
2025 Business Valuation Multiples by Industry & Size When preparing for a business sale, one of the first questions owners ask is: “What is my business worth?” While every transaction is unique, looking at valuation multiples by industry and company size gives a practical benchmark. This guide covers current 2025 multiples for SaaS, IT services, […]
Business Valuation Multiples by Industry (2025 Guide) Read More »
When it comes to selling a SaaS business, valuation is far from a simple multiple of revenue. Investors and acquirers want to know not just how much you earn today, but also how predictable, durable, and scalable that revenue will be in the future. That’s why certain SaaS-specific metrics, particularly Annual Recurring Revenue (ARR), Churn,
How SaaS Metrics Influence Valuation: ARR, Churn, and Net Revenue Retention Explained Read More »
If you own a business-to-business (B2B) service company with at least $500,000 in EBITDA and a team in place, now may be the best time to consider selling. In today’s market, b2b sales play a crucial role in the process of selling such companies, as buyers evaluate sales strategies, client relationships, and the effectiveness of
Sell a B2B Services Company: How to Maximize Value in a Hot Market Read More »
Deciding the right time to sell your business is one of the most significant professional and financial steps you can take. As a business owner, your company likely represents not only your livelihood but a substantial portion of your personal wealth. The decision on when to sell is therefore critical. Many entrepreneurs hold onto their
What’s your company’s true value in today’s market? Unlocking this crucial insight can be the key to a successful sale or strategic planning. Let’s do a quick dive into the critical factors that drive company valuation, from financial performance to industry dynamics. Whether you’re a seasoned entrepreneur or a first-time business owner, understanding these elements
The Factors That Affect Company Valuation: What You Need to Know Read More »
Many owners focus on the overall valuation figure when selling a business, hoping for the highest possible exit. However, it’s crucial to remember that not all promised amounts are created equal. The Story of the $10 Million Pizza Shop To illustrate the importance of cash at closing, consider this story: A buyer tells a pizza
Why Cash at Closing is King in Business Valuations Read More »
What Is Customer Churn? [Definition] Customer churn is the percentage loss of customers monthly or annually. It is a standard metric for subscription-based businesses. Churn is typically measured as logo churn or revenue churn. Customer Logo Churn Rate is the Loss of a Customer Name from your List of Active Customers. It is typically expressed
Understanding Customer Churn in Subscription-Based Businesses Read More »
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