Valuations in software services or SaaS businesses

by a searcher from University of California, Berkeley

4 years ago

Hope everyone had a great###-###-#### What valuation expectations searchers saw sellers have and particularly curious if anyone closed a software deal and wanted to know at what valuation?

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6 comments

searcher from University of California, Los Angeles

What's the revenue/EBITDA? Is the company looking to sell? I'm working with a $800mm AI company that's looking to acquire early stage tech companies and food process manufacturers.

4 years ago | like reply | 0 likes

searcher from Temple University - The Fox School of Business

Hi Atul - The answer depends on size of the business, rate, # of customers, customer churn and revenue churn, etc. In general, if the business has less than $2m EBITDA you could look for 4x-6x EBITDA. ARR valuations typically happen when a company has more than $5m top line that has rapid growth. Happy to talk in greater detail if you have a specific company or question.

4 years ago | like reply | 3 likes

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