Valuating new and fast growing tech company.

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM)
in Monterrey, N.L., México

5yrs ago

Valuating new and fast growing tech company.

We are currently valuating a relatively new (4 years) and fast growing fintech company.

Client suggest a valuation based on forecast with big part of thew acquisition as an earnout based on forecasted growth.

Any recomendation on multiples or a different approach?

Thanks.

1 Like

246 Views

reply by an intermediary 5yrs ago
from Cornell University in Santa Cruz, CA, USA

In our experience selling B2B SaaS in the $2-10m ARR range, I think this is a little low. We just sold a $3m ARR B2B SaaS growing 100% yoy for 10x ARR, have a 8m ARR growing 50% under LOI for 6x. I think churn is a very big part of the equation, at least for most PE buyers.

reply by an intermediary 5yrs ago
from The University of Chicago in Chicago, IL, USA

You have great market input from Kendal and Einar.
I am an M&A Intermediary and also have valuation software firm. Few years ago, my client (a PublicCo) bought a start-up that just had one moth of non-recurring revenue. Price of $180 M cash. Even though everyone talks about a multiple, which is true, the reality also is that the buyer HAS to do ROI analysis. No ifs and buts here. I made interactive valuation presentations to the board and the executive management using my software. The presentation addressed assumptions and what-if analysis. The software is DCF on steroids or some have said ...it defies gravity. My main point is that you have to combine the market input with ROI and what-if analysis.