Kjael Skaalerud’s Post

Ever wondered what's the real deal with B2B SaaS valuations these days? 🤔 Remember the heady days of 20x+ valuations for early-stage SaaS acquisitions? Well, things have changed. The market has corrected, and we're seeing a more rational valuation landscape. But here's the kicker: the software acquisition market is still bustling, and there's a silver lining for those in the know. As a founder that has worked in software for the last decade, I've seen the ebb and flow of the investment tide. And let me tell you, bootstrapping and investing in software is still a game worth playing. Here's why: - Software acquisitions are on the rise, with a keen interest in companies under $50M. - Tech spending is booming, with a 15% annual increase. - SaaS businesses with $2M to $10M ARR are still attracting buyers willing to pay a premium. - I feel like we are one big IPO away for software multiples to start climbing again (Canva maybe?) and interest rates falling will be a catalyst. So, what's the play at the moment? Focus on steady revenue growth and efficiency. Invest in AI to streamline your operations. And remember, doubling your revenue still means doubling your company's worth, even at a 5x multiple. What's your strategy for navigating the current valuation landscape? Would love to learn about others thoughts below! #B2BSaaS #Investing #Software #Growth #Bootstrapped

The game is changing in the SaaS world and it's sparking some serious excitement over here! Why the hype? ✨ The old spray-and-pray method of mass acquisitions? It's on its way out. Why? Because customers today demand the best. And they're not settling for less. Here's where it gets exciting: companies that genuinely put their customers first are poised to dominate. Imagine a world where self-centered businesses become a thing of the past. That's a world I want to be part of! No pile of venture capital can sway this shift. It's already in motion. The elite players? Their Net Revenue Retention rates are soaring above 150%, with churn dipping below 5%. Even if they paused on new customer acquisition, they'd still outpace 99% of their competitors. But let's be clear: acquiring new customers hasn't lost its charm. The strategy, however, is evolving. It's no longer about signing up anyone and everyone. The focus has shifted to targeted acquisitions. Think customers who will truly benefit and grow alongside your product. 🌱 Growth is morphing into: - Strategic expansions and upsells - Pricing that reflects true value - A surge in word-of-mouth referrals Remember, those who prioritize their customers are the ones who will lead the pack 🚀

Just analyzed the latest SaaS M&A data and the numbers are fascinating. Here's what every founder needs to know: The SaaS M&A market is waking up: deal volumes are up 20.5% in Q3, reaching 594 deals. Let's break it down: ## Valuation Multiples - Median M&A multiple: 4.1x revenue -> think about this when you calculate the value of your equity - This is much lower than the 6.9x public SaaS capital index and shows the brutal reality of private M&A - Top performers (Rule of 40 over 60) get a 200% premium - Vertical SaaS companies are seeing stronger multiples, particularly in healthcare, fintech, and HR tech - Most deals are below $100m EV ## When are you an interesting target? - ARR above $10m: at this stage both PEs and strategics are interested. At this stage you get higher multiples and more interested parties. - Rule of 40: YoY Growth + EBITDA margin should be at least 40% -> but higher growth is preferred over higher EBITDA - Net revenue retention of ~100% -> this shows that the product is sticky - 60% of acquisitions involved companies with <50 FTEs - Bootstrapped companies are particularly attractive ## Who are the buyers? - Private Equity: companies like Thoma Bravo and Vista Equity Partners are executing "buy-and-build" strategies, particularly in vertical SaaS. This involves buying a "platform" company and adding "bolt-on" acquisitions on top to achieve multiple expansion. - Strategic buyers: strategic buyers are more cautious nowadays, but you can still be acquired, especially in Vertical SaaS.

**SaaS Acquisition Journey: Update #2** 🔍 Pre-Due Diligence and Shortlisting Process Since my last update, I mainly focused on refining my approach to evaluating potential SaaS acquisitions. Here's a summary of my progress and insights: 📊 Progress and Results: - Reviewed 19 promising solutions from platforms like acquire.com, microns.com, and flippa.com - Developed a streamlined "pre-due diligence" process - Shifted from a KPI-driven approach to a more intuitive evaluation method based on my "gut feeling" My derived evaluation process for shortlisting candidates now includes: 1. Tech Stack Alignment 2. Problem-Solution Fit Assessment 3. Niche and Customer Profile Exploration 4. Personal Appeal Consideration 5. Seller Communication Evaluation 6. Quick Traffic Potential Analysis 7. Content Marketing Possibilities Brainstorming 🧗♂️ Challenges and Insights: - Time management: Balancing listing searches, community engagement, and public progress updates with the priorities of my core business - Valuation: Importance of diving deeper into financials to come to a realistic offer - Decision-making: Sticking to my initial instincts and valuation approach before making an offer Richard Branson offers this key reminder for situations where "FOMO" (fear of missing out) might kick in: "Business opportunities are like buses. There's always another one coming." 🚀 Next Steps: - Allocate dedicated time for weekly progress updates and listing scans - Further explore Upen's "Micro SaaS Idea" newsletter (https://lnkd.in/eN8wQNAS) for niche inspiration 🤝 I'm curious: What are your experiences with evaluating SaaS acquisitions? Have you developed any unique approaches or insights? Feel free to share your thoughts or questions in the comments. #saas #entrepreneurship #buildinpublic #microsaas #StartupsForSale #MicroSaaS #SaaS #microsaasideas

Some interesting insigts: SaaS M&A is surging, with Q3 deals up 20.5% to 594. Median multiples are 4.1x revenue, with vertical SaaS (healthcare, fintech, HR tech) leading. PE firms dominate with buy-and-build strategies, while bootstrapped companies and smaller teams (<50 FTEs) are particularly attractive

ServiceTitan, the "operating system for the trades," has filed for its IPO. Here's what you need to know about this vertical SaaS pioneer: 🔑 Key Figures: ARR: $685M (+25% y/y) GTV: $62B (+23% y/y) Net Dollar Retention: 110%+ Customers: ~8,000 (+18% y/y) 💡 What They Do ServiceTitan provides an end-to-end SaaS platform for home and commercial service pros (plumbers, electricians, HVAC specialists). They're the "center of gravity" in vertical SaaS tech stacks, offering: -Automated scheduling -Integrated payments -CRM capabilities 🚀 7 Key Themes 1. Vertical SaaS Pioneer: Tailored solution creating deep customer lock-in 2. Founders' Deep Customer Ties: Intimate understanding of industry pain points 3. Stacking Niches: Expanding TAM through strategic acquisitions 4. Mid-Market & Enterprise Focus: Avoiding "down-market" trades businesses 5. Add-On Products Driving Growth: Pro Products and FinTech Payment add-ons 6. Economic Resilience: 75%+ of trades jobs are non-discretionary 7. Tech Lifeline for Aging Workforce: Attracting tech-savvy workers, boosting efficiency 💭 My Take ServiceTitan has the hallmarks of a vertical SaaS leader in a massive, underserved market. Their success post-IPO will hinge on TAM expansion, margin improvement, and continued product innovation. As a fan of vertical SaaS, I'm rooting for ServiceTitan to pave the way for other VSaaS pioneers helping small businesses thrive. What's not to like about that? What's your take on their IPO? Full S1 breakdown: https://lnkd.in/eYyavKE5 #ServiceTitan #VerticalSaaS #TechIPO #TradesTech

We helped sell an 8-figure SaaS company. Here’s why the founders chose to sell—and why buyers saw potential. The founders hit a ceiling. To scale to 9 figures, they would’ve needed to shift from a self-service model to enterprise. But that wasn’t their passion. - They were technical founders. - They had no experience in enterprise sales. - They didn’t have a sales team—or the desire to build one. For them, it came down to two things: - Opportunity cost - Personal preference They were ready to start their next venture. (And learning the ins and outs of enterprise sales wasn’t interesting to them). This also made the business incredibly attractive to buyers. Because for experienced operators, the path to growth was clear. Often, exiting isn't about what's "optimal", it’s about making the right choice for you. #acquisition #saas #exits

🚀 Investment Mandate – Seeking B2B SaaS Acquisition 🚀 My partners are actively seeking acquisition opportunities that meet the following criteria: 📊 ARR: $30M - $60M+   🏢 Business Model: B2B SaaS   🎨 Focus: Companies operating within the Creator Economy   💼 Ownership: Founder-owned and led   💰 Financial Metrics:     - Gross Profit Margin: 60%+     - EBITDA Margin: 10%+   - Bonus: $100M+ in GMV 🛑 Not Seeking: Early-stage start-ups or turn-around situations 💡 Deal Type: Open to full acquisition or controlling interest investment. If you or someone in your network is leading a company that fits these criteria, I’d love to connect and explore opportunities. Feel free to DM me. #InvestmentMandate #B2BSaaS #Acquisition #CreatorEconomy #PrivateEquity #FounderLed #SaaS

Whenever a founder wants to skip small/mid-market deals to chase enterprise, I tell them it will be a costly lesson in how businesses actually work. Speed meets Process Flexibility meets Policy Innovation meets Compliance Vision meets Legacy Iteration meets Approvals and my favorite... Procurement :) I insist that the smartest path to enterprise deals is paved with mid-market success. The other path is ambitious but deadly and remember - all startups are dead by default 😵 #Sales #SaaS #enterprisesales #midmarket

How is 2025 looking for capital raise and M&A in Technology & SaaS? I am involved as a NED / Advisor in several 'off market' deals if anyone would like to explore further The focus is on 'smart strategic' money where investment is driven by value & growth beyond the growth capital injection itself, yet being empathetic, humanized and committed to a founder's journey. The same applies to where I add value beyond funding or M&A in terms of hands-on execution in GTM and sales growth. I am tracking various companies where market consolidation and convergence are going to be key in 2025. This includes Travel, Transportation and Mobility as just one example. An area I have in-depth experience in as a former founder and Exec leader. Debt and asset-based capital raises are proving something that founders are not leveraging, nor in some cases truly understand beyond equity, so I am keen to bring these otions to the table. 1. If you're a founder of a post-revenue SaaS business with an ARR model, you have PMF and Enterprise ready, get in touch. Pre-series A, Series A and Series B range. Ideally, positive EBITDA or a clear trajectory to achieve this within 2025 2. If you are an Angel, High Net Wealth individual, Family Office or PE investor looking for qualified deal flow, yet with insight into the addressable market and founders/board in question, get in touch 3. If you are a founer/s seeking a potential exit into 2025 or beyond and looking at either a 100% exit or even an attractive founder 'buy and build' 51% majority model with an earn-out, yet security of a role ongoing, also get in touch Drop me a note here or at [email protected] to explore further #mergersandacquisitions #capitalraise #founders #exit #venturebuilding #saas #technology