Understanding your business’s value is the first step in planning a successful exit. This section explains how buyers evaluate software, SaaS, and service companies in the lower middle market. The guidance comes from real deals and real buyer behavior.
You will learn how financial value differs from strategic value. You will also see how growth, churn, customer concentration, and profitability shape your valuation. Owner dependence matters as well, since buyers want companies that run smoothly without the founder.
These articles describe why recent comparable sales matter and how interest rates affect pricing. They also show what buyers look for when they judge risk and return.
My approach is direct and practical. A clear valuation sets expectations, attracts qualified buyers, and helps you secure stronger offers. Use these resources to understand how buyers will view your business and what changes can raise your valuation before you go to market.
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 »
When it’s time to sell your business, one of the first questions buyers ask is simple: How much money does it really make? The answer isn’t always straightforward. Business buyers measure profitability in a few different ways, and two of the most important metrics you’ll hear are EBITDA and Seller’s Discretionary Earnings (SDE). Both EBITDA
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,
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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
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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
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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
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