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1Q25 Software M&A Update with Jim Williams

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Manage episode 463729503 series 3458049
Content provided by Ben Murray. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Ben Murray or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.

Welcome back to The SaaS CFO Podcast! In this special edition, our host Ben Murray is joined once again by Jim Williams, Managing Director at GLC Advisors, to delve into the dynamic world of software mergers and acquisitions (M&A). Jim brings his wealth of experience and insights to provide a comprehensive overview of the current state of the market, including recent trends, deal volumes, and valuations.

Ben and Jim explore the essential metrics that SaaS founders need to focus on, such as retention rates, growth, and gross margins. They discuss the importance of understanding your business model and revenue streams, especially in today's fluctuating market. Whether you're considering an exit or aiming to scale, their discussion provides actionable advice on how to prepare your business for potential acquisition and the type of deal structures you might encounter.

Topping it all off, Jim shares his optimistic forecast for 2025, discussing the potential for increased deal volumes, better valuations, and the exciting opportunities for both platform and add-on deals. This episode is a must-watch for anyone interested in the intricacies of the SaaS M&A landscape. Don't miss out on this insightful conversation filled with practical advice and expert predictions!

Show Notes:

00:00 Software M&A Market Trends

06:01 Evolving SaaS Revenue Models

06:50 Evaluating Revenue Models for Investors

12:48 Clear Storytelling for Business Success

16:15 Navigating Valuation Gaps in Markets

19:15 High Multiples for Top Businesses

20:24 Market Challenges in Business Quality

24:37 Sponsor Leverage in Platform Deals

29:15 Cash Out or Rollover Equity?

33:08 Equity Ownership and Commitment Terms

36:46 Seller's Market: Scarcity Premiums Heightened

38:53 Expect 60-Day Deal Processes

42:50 Scaling Business: Key Considerations and Risks

46:00 Retention's Impact on Valuation

48:26 Founders Can Still Achieve Multiples

53:46 Optimism for Future Business Deals

55:11 Contact Us for Capital Updates

Links:

Jim Williams LinkedIn: https://www.linkedin.com/in/james-williams-5754953/

To learn more about Ben check out the links below:

Subscribe to Ben’s daily metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe

Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

SaaS Metrics courses here: https://www.thesaasacademy.com/

Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray

  continue reading

196 episodes

Artwork
iconShare
 
Manage episode 463729503 series 3458049
Content provided by Ben Murray. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Ben Murray or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.

Welcome back to The SaaS CFO Podcast! In this special edition, our host Ben Murray is joined once again by Jim Williams, Managing Director at GLC Advisors, to delve into the dynamic world of software mergers and acquisitions (M&A). Jim brings his wealth of experience and insights to provide a comprehensive overview of the current state of the market, including recent trends, deal volumes, and valuations.

Ben and Jim explore the essential metrics that SaaS founders need to focus on, such as retention rates, growth, and gross margins. They discuss the importance of understanding your business model and revenue streams, especially in today's fluctuating market. Whether you're considering an exit or aiming to scale, their discussion provides actionable advice on how to prepare your business for potential acquisition and the type of deal structures you might encounter.

Topping it all off, Jim shares his optimistic forecast for 2025, discussing the potential for increased deal volumes, better valuations, and the exciting opportunities for both platform and add-on deals. This episode is a must-watch for anyone interested in the intricacies of the SaaS M&A landscape. Don't miss out on this insightful conversation filled with practical advice and expert predictions!

Show Notes:

00:00 Software M&A Market Trends

06:01 Evolving SaaS Revenue Models

06:50 Evaluating Revenue Models for Investors

12:48 Clear Storytelling for Business Success

16:15 Navigating Valuation Gaps in Markets

19:15 High Multiples for Top Businesses

20:24 Market Challenges in Business Quality

24:37 Sponsor Leverage in Platform Deals

29:15 Cash Out or Rollover Equity?

33:08 Equity Ownership and Commitment Terms

36:46 Seller's Market: Scarcity Premiums Heightened

38:53 Expect 60-Day Deal Processes

42:50 Scaling Business: Key Considerations and Risks

46:00 Retention's Impact on Valuation

48:26 Founders Can Still Achieve Multiples

53:46 Optimism for Future Business Deals

55:11 Contact Us for Capital Updates

Links:

Jim Williams LinkedIn: https://www.linkedin.com/in/james-williams-5754953/

To learn more about Ben check out the links below:

Subscribe to Ben’s daily metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe

Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

SaaS Metrics courses here: https://www.thesaasacademy.com/

Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray

  continue reading

196 episodes

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