Our Guest: Diamond Innabi is a Principal at Software Equity Group (SEG), a boutique M&A advisory firm headquartered in San Diego that focuses on B2B vertically focused software and SaaS companies.

Episode Topics:

Understanding the full cycle - from prep to closing - of selling your company.
When should CEOs engage with an investment banker or consider an M&A path?
Common mistakes that founders, CEOs, and boards make during the M&A process.
Diamond's advice to founders who are interfacing with potential acquirers.
Overview of SEG’s 20 Factor Valuation Scorecard.
Difference between strategic buyers and private equity firms in terms of acquisition criteria.
Diamond elaborates on the 2023 M&A Report: “The higher-than-usual volume of low multiple deals is a result of from negative transaction catalysts like evaporating cash runway, challenging debt dynamics, competitive concerns, or investors opting to exit their lower-performing assets to focus on high performers.”
Factors influencing premium valuations for select companies.

Resources:

https://softwareequity.com/research/

https://softwareequity.com/company-valuation-formula/

https://softwareequity.com/research/saas-ma-buyers-perspectives

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Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack.

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Diamond Innabi - SaaS M&A 101: Selling Your Software Company