In M&A or majority control transactions, deferred revenue of SaaS companies can become a highly negotiated item if the amounts are significant. Deferred revenue is a liability that accrues when a SaaS business gets paid by customers in advance for future product subscriptions. In cash-free debt-free deals, differences in views of the buyer and seller can stem from the fact that the seller has already received cash from customers for obligations that the buyer will have to ful

The turbulent markets of 2022-2023 and volatility in the M&A environment has brought the topic of valuation to the forefront in many of our discussions with founders and investors. Regardless of market ups and downs, the factors that are most impactful to valuation remain relatively constant, with some standards changing with market cycles as witnessed over the past decade. Safe to say, valuation continues to be both art and science. Allied Advisers put together this artic