I am looking for a really nuanced playbook for SaaS acquisitions via traditional search funds. Something that goes beyond the obvious first screens of ARR, NRR, logo growth, revenue growth, etc.
In particular, I am curious about two things:
-How searchers should think about “is this market big enough”? My experience has been that many SaaS companies have unique tools and it is hard to easily classify them as a part of a larger market. Of course the work can be done, but I am curious if there are simple litmus tests…
-What are mental models for SaaS exits? Specifically, for more unique businesses and markets, I am curious how searchers can gain confidence that there will be buyers 4-7 years down the road. Are there certain ARR targets that make it easy to exit to a financial sponsor? How should searchers be thinking about EBITDA targets at exit?
11 views
0 comments
Sign in to see all replies.
Create an account.