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The Truth About Unsolicited Private Equity Offers (and What Founders Should Do Next)

Software Equity Group

If you are leading a software company generating between $5 million and $50 million in revenue, there is a good chance you have received unsolicited outreach from private equity firms or strategic acquirers. Private equity firms have over $2.5 ” Private equity firms understand this dynamic well.

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Our startup handles a lot of user data. What privacy, security, or compliance documentation will acquirers expect us to provide (e.g., GDPR policies, SOC 2 certification)?

iMerge Advisors

Summary of: What Privacy, Security, and Compliance Documentation Will Acquirers Expect? In this article, well outline the key privacy, security, and compliance documentation that buyers especially private equity firms and strategic acquirers expect to see during due diligence.

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Breaking Down the FOCUS Sell-Side Process

Focus Investment Banking

Our clients are usually founder-owned businesses that work with us on their first sale transaction, often to a larger company or private equity-backed group. Our extensive experience working opposite private equity acquirers tells us that a structured process is best. Our healthcare services clients (e.g.,

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Navigating Buyer Options, Key Deal Terms, and the Process

Focus Investment Banking

Financial Buyers : These are typically investment companies, such as private equity firms, with no prior investment in your industry. Sometimes strategic buyers are backed by private equity, focusing on both organic growth and acquisitions. Legal : Corporate documents, legal issues, compliance with regulations.

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How do I value a software company with recurring revenue?

iMerge Advisors

Key Drivers of Software Company Valuation Buyerswhether strategic acquirers or private equity firmsevaluate software companies through a combination of financial, operational, and strategic lenses. Here are the most influential factors: 1. Recurring Revenue and Retention Predictable, recurring revenue is the gold standard.

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Our SaaS AI product uses several open-source libraries and models (some of which we’ve fine-tuned). What licensing or IP issues might that raise in an acquisition, and how can we prepare for them?

iMerge Advisors

Why Open Source Raises Red Flags in M&A Buyers particularly strategic acquirers and private equity firms are increasingly cautious about open-source software (OSS) usage. Map Licenses to Usage For each component, document: The license type (MIT, GPL, etc.) Their concern isnt philosophical; its legal and financial.

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Equity Research vs. Investment Banking: Careers, Compensation, Exits, and AI/Automation Risk

Mergers and Inquisitions

We sometimes get questions about why we dont offer an equity research course. People are convinced that financial modeling in equity research is vastly different from investment banking and that research requires different or more specialized skills. IB is all about deals , while ER is all about coverage.