Build a Dream Team Before Hiring an Investment Bank
What key things should founders look for when hiring an investment bank to help sell their business or raise capital? Most software founders don't know exactly who needs to be involved in order to pull off a successful sale or capital raise. It's not just about finding buyers or investors, it's about assembling the right team to guide you through every step. In our newest episode on Vista Point Advisors' The Path to Exit, Mike Greco and I talk through the "dream team" founders should build early on, and how each member can play a key role in driving a smoother, more successful transaction. Listen to the full episode here: Our website: https://lnkd.in/gMf57qsg Spotify: https://lnkd.in/gZYCF-iJ Apple Podcasts: https://lnkd.in/gdfPWjpG #founders #pathtoexit #saas #mergersandacquisitions #techfounders #investmentbanking #startupexits #sellside #entrepreneurship
Investment Banks Connect Non‑hub Founders to Buyers
Who you know matters. If you own a software company that isn't headquartered in a city known for being a tech hub, one of the greatest benefits of hiring an investment bank is access to buyers. #founders #pathtoexit
Choose a Sell‑side only Bank to Avoid Conflicts
What does it mean to be an unconflicted investment bank? Unconflicted means that a bank doesn't take revenue from anyone who could be a potential buyer, or who doesn't trade favors with someone who could be a potential buyer. Conflicts...
How Founders Should Navigate Private Equity Inquiries
When we bring on a new client, we often find they've been receiving calls/emails from private equity firms for some time. As part of those calls, PE firms tend to ask a lot of questions and founders aren't always sure...
34 | Assembling Your Software M&A Dream Team
Welcome to "The Path to Exit" podcast, where host Mike Lyon and guest Mike Greco break down the essential members of a software‑M&A deal team. The episode focuses on the step‑by‑step process of assembling a "dream team"—private‑wealth advisors, investment bankers,...
Investors Chase Metrics; Strategics Chase Product Fit
Is the process the same for M&A vs. a capital raise? While the process is largely the same, there are some differences. The biggest difference: investors tend to be hyper focused on metrics, while strategics tend to be more focused...
Minority Recap Keeps Control, Majority Sells Liquidity
The fundamental difference between a minority and majority recap: Control. If you sell a majority of your business, you'll receive a high level of liquidity, but all the key decisions will now be out of your control. With a minority...
Avoid Common SaaS Gross Margin Miscalculations Before Funding
A SaaS company's gross margin is a key point of discussion in any M&A or capital raise transaction. As such, any SaaS founder looking to engage with potential buyers should ensure that they've properly classified costs related to the calculation...
Listen to Buyers: Align Messaging with Their True Priorities
Sometimes the most impactful synergies are not that obvious. We once kicked off a process selling a company to a major strategic buyer, with the initial thesis that the company's product represented a potential upsell opportunity. Further into the process,...
Question Investor's “Market” Terms; Verify Real Range
The terms of an investment will range on a scale of founder-friendly to investor-friendly. Investors won't always give you the full sense of that range. When presenting a given term (like % of a transaction placed in escrow), investors will...
Exercise.com Joins Daxko in Strategic Acquisition
Congrats to Joel Ohman , Alicia Howson , John Gadbois , Joel VanderPol , and the team at Exercise.com for their recent acquisition by Daxko . Best of luck as you kick off the next stage in your journey. Glad...
Prioritize Strategic Fit Over Valuation in Exits
Selling your business or closing a capital raise transaction isn't just about valuation, it's also about overall fit. When talking with buyers, make sure you understand what their strategic objectives will be moving forward. Verify that they share your values...
Accrual Accounting Essential for SaaS Founder Valuations
Many of the private SaaS founders we work with don't realize that recognizing revenue in accordance with principles of GAAP and accrual accounting is not just a practice for publicly traded companies. We've found that SaaS founders, for convenience and...
Aim for a 3‑6 Month Transaction Timeline
How long should a transaction process last? Though there can be significant variance, a well-structured transaction process typically takes 3-6 months. From when you officially start marketing the business to when you close the deal, 3-6 months should give you...
Minority Funding Still Means Investor Decision Power
Founders are often interested in minority transactions for one reason: Control. In a founder's mind, if they retain majority ownership in the company, then they'll fully control the strategic direction of the company, even if they give up a seat...
Know Buyers' Past Valuations to Set Realistic Expectations
In terms of valuation, it's important to consider a buyer's historical track record. Understanding how buyers have valued businesses in the past will give you clues to whether they're a value buyer or premium buyer. Also, in the event that...