The Replacement Value Trap – And How to Avoid It
In the world of software M&A, there’s a valuation trap that too many founders fall into — and too many buyers lean on: replacement value. It’s a seductive line of thinking for acquirers. They’ll look at your company — your years of engineering effort, your product-market fit, your know-how — and ask a deceptively simple question: “Could we just build this ourselves?” From there, they spin up a spreadsheet estimating how many developers they’d need, for how long, and presto — they present you with a valuation based not on what you’ve created, but on what it would cost them to recreate it.
The Future is Local: How Decentralization is Rewiring Software M&A
The future is local
What’s Your Company Really Worth? The Truth About Valuation Estimates
What’s your company worth? It depends.
The Pitfalls of Process Letters and Rigid Deadlines in Tech M&A
Sending out process letters with rigid deadlines often does more harm than good
Leveraging RegTech as a Strategic Driver in Cross-Border M&A
Cross-border mergers and acquisitions are increasingly driven by regulatory considerations
AI’s Impact on M&A: Rethinking Build vs. Buy
Traditionally, buyers evaluating acquisitions asked: Should we buy this company or build it ourselves? Now, there’s a new factor: Can we build this using AI?
Don’t Boil The Ocean
Creating a buyer list in an M&A process is a delicate balancing act. The temptation to cast an extremely wide net—to include hundreds of potential buyers—may seem like a good idea. After all, wouldn’t more buyers equate to a better chance of closing a deal at the desired valuation? In reality, this “boil the ocean” […]
Your Business is Being Acquired—How (and When) Do You Tell Your Team?
Selling your company is a transformative journey, and a crucial yet often underestimated component is how you communicate this change to your team. Effective messaging can alleviate uncertainty, foster excitement, and ensure your key talent remains committed.
The Role of the Product Champion
In any M&A transaction, there’s a fascinating shift that often happens during management presentations. While the seller typically starts by pitching the buyer, a point may come when the buyer begins to “sell” the seller.
Getting to “We”
The management presentation during the M&A process is a critical moment in any transaction. It’s the first opportunity for the seller to engage directly with the buyer’s team, which often includes decision-makers and product owners who will be responsible for integrating and leveraging the acquisition. The ultimate goal of this presentation? Getting to “We.”
