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Would revenue or assets be used? So once the accounting statements are reviewed, then most of the acquisition talk is just a discussion over a multiplier?
by siruncledrew 8y ago
Would revenue or assets be used?
So once the accounting statements are reviewed, then most of the acquisition talk is just a discussion over a multiplier?
- Dwolb 8y agoIt all factors in but realistically with SaaS there is little in terms of fixed assets. Most likely a lot of the additional factors for the valuation multiple calculation are going to be around efficient customer acquisition, sales cycle payback periods, and different income percentages (operating, net). X factor would be if other competitors of the acquirer are also bidding on the acquiree.
- bduerst 8y agoDepends on the business. Something like Zipcar or similarly asset-heavy would incorporate assets in an MnA valuation, but SaaS would not unless they're flush with valuable patents.