iMerge Advisors

APRIL 9, 2025

A Strategic Guide for Founders and CEOs For software founders contemplating a sale, the first and most pressing question is often: What is my software company worth? The answer is nuanced, shaped by a blend of financial performance, market dynamics, buyer appetite, and strategic positioning.

Sale 40

Sale Valuation Discounted Cash Flow M&A 40

Software Equity Group

FEBRUARY 26, 2024

DCF: Discounted Cash Flow Estimates a company’s value and forecasts future cash flow by incorporating the time value of money. DCF is used when making investment decisions and understanding a business’s current and future value. It determines a more constant rate of return on business growth that naturally fluctuates over time.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Mergers and Inquisitions

MARCH 5, 2025

For example, a company may have won approval for its drug and indicated that its expected peak sales will be $5 billion annually. Based on this, the market values the company at a 1x Enterprise Value / Peak Sales multiple, so its current Enterprise Value is $5 billion. How long will it take for the drug to launch and reach peak sales?

Funds 64

Funds Healthcare Mergers and Acquisitions Valuation 64