SaaS Valuations

Greetings! Welcome to The SaaS CFO Interview Series.

I invited Karam El-Harami at Software Equity Group to discuss SaaS valuations.  We cover some of the following key points and more!

Enjoy!

Ben

  • Is there a myth that strategic buyers will pay more than financial buyers?
  • When does it make sense to value your business on a multiple of ARR or EBITDA?
  • Is valuation a chicken or the egg type concept? ARR or EBITDA multiples are the result of the financial performance of the business?
  • What SaaS metrics and/or financial metrics really drive valuation? Has this changed over time?
  • What do founders need to do to get their house in order for an exit?
  • When does it make sense to run a formal “process?”
  • What services do M&A advisors provide in exit?
  • How are revenue models based on usage, consumption, and/or transaction pricing affecting the valuation process?