Tech M&A / Valuation
Are there any good reading materials on Tech M&A and valuation, especially in cases where both buyer and target is EBITDA negative and/or differ in size dramatically - so more economies of scope based acquisitions. DCFs would be less relevant here esp. if EBITDA negative persists for a bit. Would primary methodology be comps then in this case - and acc/dil would also not be relevant here
Not a tech expert by any means but will take a stab.
Most growth companies would be valued on revenue as capital is allocated to growth drivers like sales & marketing, R&D and such. So comps/precedents on revenue multiples are the way to go.
Just slap a sales or GP multiple on it and call it a day. If you want to go more in depth do rule of 40 with gross margin + rev CAGR instead of EBITDA margin + rev CAGR.Source: tech banker
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