Software Buyouts / Majority Transactions

Authored by: Certified Private Equity Professional - PrincipalCertified Private Equity Pro

Associate 2 in PE - LBOs

Anonymous

Buyout with one of the uses being balance sheet cash + ARR-based loan (1.5-2.0x).

Authored by: Certified Private Equity Professional - 3rd+ Year AssociateCertified Private Equity Pro

MidtownParkAve

Getting massive inbounds on ARR loans from a BX/Owl Rock/HPS or any DL that can write equal to smaller-sized checks. Taking tech equity risk (better than a lot of cyclical credit risk) for a HSD notional payout a nice symptom of rates that never go up.

Authored by: Certified Hedge Fund Professional - PrincipalCertified Hedge Fund Pro

Retired in Acct - Audit

Anonymous

Vista buys majority positions in Enterprise Software companies. Robert Smith mentioned in an interview recently that up until 2007 banks wouldn't provide leverage for these companies so it was all cash. There is minimal leverage used today.

kuf135

You can get loans based on a multiple of ARR even if the company is not cash flow positive as long as its growing quickly and there is a chunky equity check sitting below the debt. If you can show a plan to get to breakeven within the first 18 months of ownership, even better.

Analyst 1 in IB-M&A

Anonymous

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