Diamond Innabi - SaaS M&A 101: Selling Your Software Company
Our Guest: Diamond Innabi is a Principal at Software Equity Group (SEG), a boutique M&A advisory firm headquartered in San Diego that focuses on B2B vertically focused software and SaaS companies.
Episode Topics:
-Understanding the full cycle - from prep to closing - of selling your company.
-When should CEOs engage with an investment banker or consider an M&A path?
-Common mistakes that founders, CEOs, and boards make during the M&A process.
-Diamond's advice to founders who are interfacing with potential acquirers.
-Overview of SEG’s 20 Factor Valuation Scorecard.
-Difference between strategic buyers and private equity firms in terms of acquisition criteria.
-Diamond elaborates on the 2023 M&A Report: “The higher-than-usual volume of low multiple deals is a result of from negative transaction catalysts like evaporating cash runway, challenging debt dynamics, competitive concerns, or investors opting to exit their lower-performing assets to focus on high performers.”
-Factors influencing premium valuations for select companies.
Resources:
https://softwareequity.com/research/
https://softwareequity.com/company-va...
https://softwareequity.com/research/s...
About Cloud Radio by Cloud Ratings:
Made for "full stack" cloud + SaaS operators, Cloud Radio is a SaaS podcast covers all aspects of the business of software.
Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack.
https://cloudradio.cloudratings.com/
https://www.saasletter.com/
About Cloud Ratings:
Cloud Ratings is a customer outcomes-focused, data-driven software research analyst firm. We exist to allow organizations to make more confident, lower-risk software purchasing decisions.
Our Cloud Ratings Category Reports combine user reviews with verified vendor data to impartially identify leading software products. Recent report examples include: Board Management Software, Account-Based Marketing Software, Cap Table + Equity Management Software, Lead Routing Software, and Sales Training + Onboarding Software.
Built upon investigative customer interviews, our True ROI Reports quantify and provide 3rd party validation of a software product’s business value.
https://cloudratings.com/