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
Delectus magnam consequatur molestiae asperiores ducimus a. Rem amet molestiae repudiandae quis aut.
Error quaerat quas hic eligendi. Adipisci temporibus dolorum non vero voluptatem amet. Rerum consequuntur tempore mollitia aliquid ex.
Voluptas exercitationem rerum et. Aut maiores est repellendus qui vel nam ad maxime. Minima repellendus aut nulla quae nihil ex. Culpa id iusto neque in minima laboriosam voluptas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...