The SaaS CFO · Ben Murray
podcastplaybook4Q23 Software M&A Update
Source excerpt
About The SaaS CFOWelcome to The SaaS CFO Podcast! In this episode, our host Ben is joined by the esteemed Jim Williams, a seasoned expert in software M&A and the Managing Director of GLC Advisors. They delve into the current landscape of private equity deals, the changing dynamics of valuations, and the importance of understanding the true business model in SaaS companies. Jim sheds light on the cautious approach private equity sponsors are taking, with lenders becoming more conservative on leverage. They discuss how discipline has increased among sponsors, who now prioritize investing in higher-quality assets and businesses with stronger growth potential. Valuations have shifted, and Jim provides insights into the factors driving these changes. The conversation then turns to the significance of understanding revenue streams and profitability in SaaS companies. Jim emphasizes the need for a clear…
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Apollo layer
What a founder can learn
Founder takeaway
Treat M&A readiness as a business-quality exercise, not a valuation exercise. Clearly document how each revenue stream works, what drives profitability, and why growth can endure—because buyers are looking past the SaaS label to understand the true economics of the business.
Why it matters
More cautious lenders and disciplined private equity sponsors can reduce leverage and increase scrutiny. Strong, explainable economics and credible growth potential therefore become central to both buyer interest and valuation.