How many EBITDA turns of bank debt is realistic for a SaaS business?

October 03, 2024
by a searcher from Harvard University - Harvard Business School in Toronto, ON, Canada
Traditional searcher here! Frequently, I come across SaaS businesses with great margins, however, on the higher end of TEV. In most cases, I assume a bank debt of 2-2.5X EBITDA for a 7 year term at 8% interest rate. Are these the typical terms these days? Sometimes, even an extra half turn can make the numbers work.
Also, who are the most popular lenders in the US?
from University of Toronto in Toronto, ON, Canada
from Bowling Green State University in Surrey, BC, Canada