EV/Revenue, EV/EBITDA, and DCF: which valuation model fits SaaS
Selecting the appropriate valuation model for a SaaS company depends heavily on its stage, profitability, and growth trajectory. While multiples offer quick benchmarks, a robust DCF remains essential for capturing long-term value creation.
Strategic buyer vs financial investor: how to pick the right exit path
The choice between a strategic buyer and a financial investor significantly impacts exit value, deal structure, and post-acquisition control for technology company shareholders. Understanding their distinct motivations and valuation approaches is critical for optimizing a sale.
Preparing an IT company for sale in 18 months: a shareholder checklist
A structured 18-month preparation timeline for IT company shareholders aiming for an optimal sale, focusing on value drivers and risk mitigation.
Why IT companies are worth less than their founders expect
Founders often anchor their valuation expectations to early-stage metrics or isolated market highs, overlooking critical factors that depress enterprise value in later-stage transactions. This disconnect stems from a misunderstanding of how buyers assess risk, future growth, and operational maturity.
Why SaaS ARR multiples are diverging from EBITDA multiples in 2026
The market is increasingly valuing SaaS companies based on future growth potential, leading to a widening gap between ARR and EBITDA multiples, particularly impacting capital allocation and deal structuring.
IT strategy for mid-market: when to commission consulting
Mid-market technology companies often face a critical juncture where an undefined IT strategy can directly impact enterprise value. Engaging external IT consulting becomes essential when internal capabilities are insufficient for capital events or significant operational shifts.
How shareholders measure whether their IT asset is gaining value
In 2023, the median enterprise value to revenue multiple for B2B SaaS companies with over $10M ARR declined by approximately 20% compared to the previous year, signaling a recalibration in market expectations for growth versus profitability. For shareholders of technology businesses, understanding whether their IT asset is appreciating requires a nuanced approach that transcends simple […]
GovTech as an investment category: why interest is growing in the EU
The European public sector is projected to spend over €400 billion on IT by 2027, representing a compound annual growth rate (CAGR) of 6.7% from 2022. This substantial and consistent capital allocation, largely shielded from typical consumer market volatility, underpins the increasing investor interest in GovTech solutions across the EU. This trend is not merely […]