As a software CEO, you have likely been courted by private equity (PE) firms or strategics; in some select cases you might find yourself being courted by a Search fund (“Fundless Sponsor”). If the term Fundless Sponsor is new to you, the article from Allied Advisers will demystify this for you. Allied Advisers' Search Fund Primer provides insights into a Search Fund investment model, the types of businesses they seek to acquire, and the pros and cons of exiting to a Search F

Allied Advisers invited to present to JP Morgan Austin office on Technology Mid-Market Liquidity Trends in August 2022

Allied Advisers updated our previously published Flavors of SaaS report, where we include an analysis across a select group of companies in each category comparing operational metrics across the two flavors of SaaS; Horizontal SaaS and Vertical SaaS. As advisors who have worked across both flavors, we see interesting differences. While Horizontal SaaS companies generally have larger TAM, Vertical SaaS companies can be more capital efficient and have better operational metrics

Congratulations to Delivery Drivers, Inc, (DDI) on exiting to Walmart, the world’s largest retailer and Fortune 1 company. Allied Advisers is thankful to have served as exclusive sell-side advisor to our client DDI on their exit to Walmart. Read the full press release

Allied Advisers, Managing Director Gaurav Bhasin was interviewed in a Podcast. At Allied Advisers we believe technology and talent is global. We are thankful to have closed transactions for clients recently not only in Silicon Valley but also in various parts of USA, Canada, Europe, US-India corridor and are working with a fast growing profitable company from Israel. We expect this trend to continue with entrepreneurship, remote work and technology quickly moving to the cloud

In 2008 due to the financial meltdown, IPO’s came to a screeching halt but noticeably M&A hummed along in 2009, 2010 and came roaring back from 2010 onwards. M&A has always been a resilient product and while the current economic environment has its challenges, there are many positive tailwinds, more so than in prior downturns which will continue to bolster M&A. These include records levels of capital at PE and Strategic, rapid digital transformation of industries, emergence o

Allied Advisers report shows that companies which exceed Rule of 40 trade at significant premium valuations compared to companies that do not. Rule of 40 for SaaS companies is a useful metric for investors and strategic buyers to measure the performance of SaaS companies. In this market downturn for public and private companies, the Rule of 40 is useful for founders, management and investors to keep in mind as they build their companies for optimal valuations.

Congratulations to Luka Crnkovic-Friis, Måns Essén, and the entire Peltarion team for creating the leading Stockholm AI company exiting to iconic games developer Activision Blizzard King , largest game network in the world. Allied Advisers is thankful to have served as exclusive sell-side advisor to our client Peltarion on their exit to Activision Blizzard King. Games are one of the best interactive and engaging forms of entertainment that have the unique ability to trans

This list includes investors and advisors who are serving the technology ecosystem. Read the full article

Congratulations to Badri Nittoor, Bari Chittamuri and the eureQa team and investors on their exit to Worksoft , a leading automation software portfolio company of Marlin Equity Partners , a global private equity fund. Allied Advisers is thankful to have advised our client eureQa as exclusive sell-side advisor on this transaction. eureQa’s purpose-built SaaS platform for end-to-end software testing enables digital assurance at enterprises with AI for automation and machine l

Inflation has surged in the US economy in recent months at 8.5% to its highest level in 40 years and impacted the business environment across practically every industry. Public and Private technology companies in particular have seen their valuations impacted. Allied Advisers developed this article to provide insights into how inflation impacts technology company valuations and what business executives can do to navigate this choppy environment and suggestions to sustain gro

Congratulations, you have a buyer interested in your business. When you receive the term sheet, you may find that the proceeds are primarily in stock or mix of stock and cash, which leaves you wondering if the offer is “market” and how you should evaluate the term sheet. In Allied Advisers analysis of 7K+ deals done in the last 5 years globally and stock has been a consideration in ~30% of transactions. We expect the use of stock to increase even more for M&A given the growth

Allied Advisers serves as sell-side sdvisor to an HR Tech marketplace on a buyout transaction with a top 5 staffing company in the US

The revenue model of a business is often a key determinant of the interest and valuation consideration in M&A or investment transactions. Revenue streams that are recurring, have high gross margins and based on long-term contracts (e.g. SaaS subscription) provide significantly higher enterprise valuation multiples compared to non-recurring and transient forms of income (e.g. licensing, project-based). In this article, we cover the different types of revenue models, their fi

In M&A or majority control transactions, Net Working Capital (NWC) of the selling company impacts the purchase price in over 80% of the transactions per SRS if not managed correctly. Allied Advisers authored this article as a primer to explain what NWC is, how it is calculated and how it impacts the purchase price so entrepreneurs and CEO’s can navigate thoughtfully through the nuances of NWC that comes up in transactions. An experienced advisor can help negotiate and resolv