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

Rule of 40 for SaaS companies is a useful metric for private equity investors and strategic buyers to measure the performance of SaaS companies. Allied Advisers’ reports shows that companies which exceed Rule of 40 tend to trade at premium valuations compared to companies that do not. The Rule of 40 is a good metric for founders and investors to keep in mind as they build their companies. Download the full report

Read about some of the factors that help technology companies achieve premium valuation. Read more on Crunchbase News

Allied Advisers serves as sell-side advisor to Ventureforth on their exit to Prometheus Group, a portfolio company of Genstar Capital Read more on the press release

451 M&A Daily: Allied Advisers serves as sell-side advisor to Lore IO on their Exit to Alteryx (NYSE: AYX) Read the full Press Release by Alteryx

Sandhill published Allied Advisers article: Ravi Bhagavan, Managing Director at Allied Advisers provides insights about the emergence of innovative software development tools that further democratize building applications – “low-code” and “no-code” platforms. Read the full article :

A quick read for companies and investors when considering outsourcing software development. Read more on Crunchbase News

Allied Advisers is pleased to be quoted in the exit section of the best selling book: The Business of Venture Capital by Mahendra Ramsinghani, an insightful book for entrepreneurs and investors with anecdotes and case studies from leading practitioners.

Allied Advisers advised ScaleGrid on their growth financing by Spotlight Equity Partners. Read More in the Press Release

451 Group notes Allied Advisers servers as advisor in sale of CloudQuest to Deloitte Read the full press release by Deloitte

Allied Advisers advises 21Labs on their exit to Perforce backed by Clearlake and Francisco Partners Read the full Perforce Press Release