Top Triggers for M&A Retrades—and How to Avoid Them
In M&A, retrades—adjustments to the original purchase price—are commonly associated with missed financial targets, but that’s the tip of the iceberg. Often, it’s the hidden accounting, operational, legal, and technical gaps that create the biggest risks. Below, we explore the 5 main triggers of retrades and how to navigate them effectively. 1. Improper Revenue Recognition […]
Sell While You’re Still Growing
If your company is growing, congratulations! However, it’s critical to address a common misconception about timing the market for mergers or acquisitions: waiting until growth slows down before running a process can be a costly mistake. Many business owners believe that continued expansion means they can delay conversations with potential buyers or investors, assuming their […]
Leave something for the buyer
Over the years, we’ve had a lot of discussions about exit timing with founders and one issue often comes up. The founder wants to “finish everything” and have a “perfect” business before they sell. This is understandable, and demonstrates a sense of pride in the business, but is it actually the best strategy? It may […]
Forty is Just a Number: Unpacking the Whole Truth
The Rule of Forty is often touted as a simple, go-to metric for evaluating the health of growing companies, particularly in the tech and SaaS sectors. The formula seems straightforward: add a company’s year-over-year revenue growth rate to its profit margin, and if the sum is 40% or higher, you’re in good shape. However, while […]
Loudest Voice Loses: Navigating M&A with Skill, Not Showmanship
In the world of software mergers and acquisitions (M&A), many believe that “the loudest voice wins.” This is a misconception. Being the most vocal or aggressive in a deal doesn’t guarantee success. In fact, it can often backfire. Real success in M&A comes not from grandstanding or dominating conversations, but from being a skilled facilitator […]
Why North American Buyers Like ANZ Businesses
Australian and New Zealand companies possess unique qualities that make them highly attractive to North American buyers, yet their distinctiveness often flies under the radar. One memorable moment was when I pitched a prominent private equity (PE) firm about a great company in Melbourne, and they asked, “Melbourne, Florida?” It highlighted how overlooked the ANZ […]
You’re more than a number
When it comes to valuing your software company, it’s crucial to remember that your revenue is simply a number another number is multiplied by. That multiplier – the multiple – reflects much more than just your current financials. While it’s tempting to look at sector reports or public company multiples and make direct comparisons, this […]
AI vs. SaaS: The Battle for Innovation and Scale
In today’s rapidly evolving software landscape, AI startups and traditional software companies are navigating parallel paths—each excelling in specific areas while facing significant limitations. On one hand, AI startups are driving innovation with cutting-edge technology, but they often lack the foundational elements needed for sustainable growth. They struggle with limited access to reliable, large-scale data, […]
Before the Window Closes: Timing Your Business Sale
Many business owners make the critical mistake of waiting until they feel cornered to sell their business. This reactive approach can diminish the value of your company, placing you at the mercy of buyers who see your situation as an opportunity to drive down the price. Here’s the hard truth: when you’re desperate to sell, […]
