đ§What I Learned Last Week
Week ending Friday October 21, 2022
What I Learned Last Week curates the most interesting content relating to business acquisitions, operations, entrepreneurship, finance, and more. WILLW is a publication of The Business Inquirer.
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Hello Friends!
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đ° Articles
Software Equity Group (SEG) released its 3Q22 SaaS M&A update as well as its public market update.
3Q22âs 492 SaaS M&A deals (on par with 3Q21) marked another strong quarter for SaaS M&A activity as buyers and investors continue to view the asset class favorably during times of market uncertainty. The quarterâs median SaaS M&A multiple of 5.2x EV/Revenue also held up stronger than the 6.3x median for public SaaS companies (down 61% YOY).
SEG continues to see valuations remain elevated for companies demonstrating durability. Our latest report shows the strength of the SaaS M&A market:Â
SaaS M&A deal volume for the first three quarters of 2022 is up 35% over the same period in 2021.
Private equity (PE) firms outpaced strategic buyers and continue to drive the lionâs share of M&A volume.
Investors continue to show a strong appetite for high-quality companies exhibiting the right characteristics (i.e., profitable growth, high gross retention, strong product differentiation, etc.).
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Eads Bridge Holdings published a great Q&A on how SMBs can compete and win the talent war with larger organizations. The discussion touches on best practices, ATS systems, using data to your advantage, and more.
Employ data indicates that for small-and medium-sized companies, 62% are taking more chances on candidates due to the tight labor market, including looking beyond the lack of industry experience (45%), gaps in work history (42%), and missing requirements or years of experience for the role (33%).
Overcoming the tight labor market has companies relying on specific strategies that enable SMBs to make open roles more attractive to candidates.
Winning the War for Talent with Software: Employ CMO, Allie Kelly
𧾠Twitter
A good system for problem-solvingâŚ
Follow along this turnaround journeyâŚ
A great opportunity for the right candidateâŚ
Pulse of the real estate marketâŚ
Could be nothing. Maybe the start of somethingâŚ
On the importance of tax diligence. DueDilio can helpâŚ
The âSilver Tsunamiâ surge keeps growingâŚ
When the sum of the parts are worth < than the wholeâŚ
đ¤ Thoughts, Events, Other
Macro
I want to highlight an interesting interview with Russell Napier. Russell is a historian and market strategist. I had the pleasure of working with him at CLSA and really enjoyed his wit and financial knowledge. ÂŤWe Will See the Return of Capital Investment on a Massive ScaleÂť
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Business Buying 101
BizBuySell is hosting a webinar on October 27thâŚ
Please join us on Thursday, October 27th for our Buying a Small Business 101 with Ed Pendarvis, a webinar dedicated to empowering business buyers with the framework to search for, and buy the right business for them!
Don't Miss:
Determining the Right Small Business for You
The Small Business Search Process
3 Main Areas of Focus in Small Business Buying
Rules of Thumb: Valuations, Pricing, Financing, Due Diligence
Click here to register
đ Tools & Resources
I want to share some tools & resources that I have found helpful. Please note that some of these may contain affiliate links. This means that I may receive compensation if you sign-up and use them.
Cerebro Capital - Cerebro has a network of 1,500+ lenders who can provide debt financing for your acquisition, refi, etc. $500k minimum.
X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.
Curators - Proprietary deal sourcing. You need targets that fit your investment criteria, and Curators delivers week after week - we even update your personalized database on a daily basis with new information on best-fit targets.
BizNexus - Proprietary deal flow, deal aggregator, and exit prep. Local Boston company and I consider the founder (Adam Ray) a friend.
PrivSource - Deal aggregator for lower and middle-market listings.
The Website Flip - a newsletter that sends content sites for sale to your email inbox. They send deals each Wednesday and Friday.Â
Kumo - Find every deal in one complete platform. Spend less time sourcing deals and more time closing them. Kumo aggregates 180K+ business listings into one easy-to-use platform.
Eloquens - Knowledge marketplace. Iâve purchased a few templates from them.
Deal Flow Scout - Peer-to-peer deal flow exchange. Free, open, transparent.
Deal Sourcing Guide - A directory I put together of online marketplaces, brokers, DFY deal flow, and more.
Thatâs all for this issue of What I Learned Last Week!
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Important Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. This newsletter may link to other websites and certain information contained herein has been obtained from third-party sources. While taken from sources believed to be reliable, it has not been independently verified. The Business Inquirer makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. References to any companies, securities, listings, investments, or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any business, tax, or investment decisions. Content in this newsletter speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.