Author: David Rowat

M&A BLOG

Strategic Exits is the leading M&A advisor for entrepreneurs in the tech industry.  We design and execute optimum business exit strategies, putting more money into the pockets of founders and their angel investors.  We only provide M&A advisory services on the sell side to technology companies. We focus on the tech industry because we were once founders and executives too.  We have experienced the successes and challenges of tech busines...

Exits Talk

After the longest bull market on record – almost 14 years – the NASDAQ reversed course at the beginning of 2022 and continued to slide for months, losing about 33% of its peak value. The M&A market fared somewhat better: Global M&A was down 27% in the first half of 2022 compared to 2021 but was still better than the 2015-19 cycle. Private tech company valuations declined a little in the first half of 2022 then declined a lot in Q3. In t...

Exits Talk

I was disappointed to read in a recent column by Gus Carlson in the Globe & Mail https://www.theglobeandmail.com/business/commentary/article-recession-remote-workers-layoffs/ that Apple, Tesla and Goldman Sachs are a few of the many large companies that are using the impending recession to leverage their mobile workers back into the office....

Exits Talk

Directors love to get involved in the exit.  it's the most fun part of working with a tech company and you might walk home with a big cheque.  But Directors need to separate their roles as Directors and Investors. This paper describes how the Board of Directors of a technology company can exercise its fiduciary duty to supervise the work of management and its M&A advisors without becoming entangled in the process.  Thi...

Exits Talk

Before the correction, the stock markets in general, and technology and software in particular, had a multi-year run never seen before.  The sudden reappearance of inflation and the rise in interest rates to combat it caused a correction in late 2021.  There has been a lukewarm rebound recently but few are convinced that the correction is over.  Many are nervous that there is more unwelcome news to come. So how has technology fared during these ...

Valuation

Revisions:  July 13, 2022, November 17, 2022 SaaS Valuations are Changing Quickly. You need to know how they work.

Exits Talk

When financial markets decline suddenly, everyone becomes an economist explaining what is happening and why this time it is different than all the downturns that came before it.  The downturn of 2022 may turn out to be a normal market correction in one of the most sustained financial bull markets in a century. But it could also be only the start of a prolonged term of financial setbacks that has been creeping up on us for years. The pr...

Exits Preparation

If you are a tech entrepreneur looking to sell your company, you want to see this video. It explains how to build a Financial Model that shortens the exhausting diligence process in two ways: first, it gathers all the historical, budget and future financial projections in one comprehensive Excel model, and second, it calculates the Normalized EBITDA used to value your company.Follow the process explained in the vi...

Exits Talk

M&A Fee Data Used to be Scarce: The size and terms of fees that M&A advisors charge for selling a company has been a hot topic in the tech industry for decades. Until the decade of 2010, data was scarce, and largely unpublished. M&A advisors would furtively gather in dark corners at finance conferences to discuss fees, but they were guarding information more than sharing it. The lack of transparency led to wide disparities in M&...

Valuation

(updated July 9, 2022) When an exit is on the horizon, tech entrepreneurs need to come up with a way to value their company. Software as a Service (SaaS) companies are almost always valued using a Revenue Multiple. This is described in the companion article: Methods for Valuing Technology Companies. SaaS company valuation starts with the current average...