iMerge Advisors

APRIL 9, 2025

The most common methodologies include: EBITDA Multiples : Often used for mature, profitable software businesses. Revenue Multiples : Common for high-growth SaaS companies, especially those reinvesting heavily in growth and not yet profitable. Profitability and Cash Flow While growth is important, buyers also value efficient operations.

Valuation 40

Valuation M&A Profitability Discounted Cash Flow 40

iMerge Advisors

APRIL 9, 2025

Profitability and Margins While some buyers prioritize growth over profits, especially in earlier-stage deals, strong gross and EBITDA margins still matter. A company growing 40%+ annually will often command a premium multiple, particularly if growth is organic and not overly reliant on paid acquisition.

Sale 40

Sale Valuation Discounted Cash Flow M&A 40

iMerge Advisors

APRIL 9, 2025

Select the Right Valuation Methodologies For software companies, the most common valuation methods include: Revenue Multiples: Often used for high-growth SaaS companies, especially those not yet profitable. EBITDA Multiples: More common for mature, profitable software businesses.

Valuation 40

Valuation M&A Discounted Cash Flow Advisory 40