I did tech M&A. Strategics may reward a seller with a lofty valuation but... They can leverage their equity and really structure the hell out of a deal (earnout, deferred payments etc) a financial investor can also structure a deal but has cash only terms to offer. A financial buyer may rely more on the management of the seller due to lack of direct industry knowledge...😁
"These are the most aggressive buyers I see in the market, paying anywhere from 10-25x EBITDA. If you DON’T exceed the Rule of 40, I would expect to see somewhere between 7-12x EBITDA. " What is your source for this data? It sounds pretty reasonable but I would like to reference this for a presentation. thank you!
Always got to pay attention to all the structure. Can really change the economics of a deal
I did tech M&A. Strategics may reward a seller with a lofty valuation but... They can leverage their equity and really structure the hell out of a deal (earnout, deferred payments etc) a financial investor can also structure a deal but has cash only terms to offer. A financial buyer may rely more on the management of the seller due to lack of direct industry knowledge...😁
Insert fundraising adage, "Tell me your price and I'll tell you my terms (structure)"
"These are the most aggressive buyers I see in the market, paying anywhere from 10-25x EBITDA. If you DON’T exceed the Rule of 40, I would expect to see somewhere between 7-12x EBITDA. " What is your source for this data? It sounds pretty reasonable but I would like to reference this for a presentation. thank you!