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Another thing to consider for tech folk here: if you convince the company of cost savings always consider the possible equity value increase. Software led compa
by mbesto 4y ago
Another thing to consider for tech folk here: if you convince the company of cost savings always consider the possible equity value increase. Software led companies can generally command high EBITDA multiples. If you cost $100k and save the company $100k in annual costs, then you potentially have created $2,000,000 in equity value (20x is a safe EBITDA multiple to assume). A business owner would take that deal any day of the year, especially one that might sell to a PE.
Note - Companies can be valued at top line ARR/Revenue and/or EBITDA, so YMMV, even in the PE world.