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Take Five #032: The gory details of what it takes to get a deal done, and more

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Take Five #032: The gory details of what it takes to get a deal done, and more

Five takeaways we loved at Kumo this week

KUMO | withkumo.com
Nov 10, 2022
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Take Five #032: The gory details of what it takes to get a deal done, and more

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Subscribe to Take Five to get our top 5 quick weekly reads on the world of SMB, M&A, and EtA from the team at Kumo. Kumo aggregates hundreds of thousands of deals into one easy-to-use platform so that you can spend less time sourcing, and more time closing deals.

Before we jump into our Take Five: our beta for Kumo is LIVE! Try it for free now at withkumo.com

What is Kumo?

Kumo is a powerful deal aggregator to help supercharge your deal sourcing.

What can you do with Kumo?

  1. Browse 100,000+ deals from hundreds of brokers and every major marketplace, with 700+ unique deals added daily.

  2. Save time and stop reviewing duplicate deals. Kumo matches identical deals across hundreds of sources so you can view unique business opportunities, even if they’re slightly different across different websites.

  3. Get a daily or weekly summary of deals that match your search criteria

Try Kumo for FREE now


Take Five #032: The gory details of what it takes to get a deal done, and more

1. The gory details of what it takes to get a deal done, from Day 1 to Day 167

Twitter avatar for @ColinKeeley
Colin Keeley @ColinKeeley
167 days later we closed another SaaS acquisition. It's not as easy as Twitter makes it out to be. Here's the gory details of what it takes to get a deal done:
2:38 PM ∙ Nov 2, 2022
164Likes17Retweets

2. How to Value A SaaS in 2022

As of 2022, the global SaaS market was valued at $186.6 billion. By 2028, it’s expected that this number will reach $720.44 billion, with a CAGR of 25.25% during the forecast period of 2022 – 2028.

How to value a SaaS business is perhaps one of the hottest and most ambiguous debates among small business entrepreneurs, investors and advisors at the moment. If you want an accurate valuation, you can receive a free one via our page here. If you want to understand how to value a technology business, the first question is whether to look at a multiple of SDE, EBITDA or Revenue.

Stories of wildly high revenue multiples for unicorn SaaS businesses can seem at odds with the modest earnings multiples for smaller SaaS businesses, which serves to confuse the information in the marketplace. The reality is that different SaaS companies can represent entirely different investment propositions.

The main differences come down to the size and growth of the businesses in question, as we explore in depth below.

From “How to Value a SaaS in 2022” by FE International


3. Top takeaways from HBS’s ETA Conference

Our personal favorite: “Search democratizes access to people from various backgrounds to be able to have a path to ownership of a small to medium sized business.”

Twitter avatar for @SBA_Matthias
Matthias Smith, CEO - Pioneer Capital Advisory LLC @SBA_Matthias
Over the weekend, I had the opportunity to attend the @HarvardHBS Entrepreneurship Through Acquisition Conference. I wanted to put together a thread of key takeaways from the conference to help searchers in the SMB acquisition space. I'll sprinkle in some quotes as well. 1/x
9:31 PM ∙ Nov 1, 2022
52Likes5Retweets

4. The next 12 months, according to 200 senior business executives and dealmakers in the US

200 senior business executives and dealmakers offered their expectations on the market in the next 12 months for Dykema's 18th annual M&A Outlook Survey:

Nearly two-thirds of business decision makers anticipate the U.S. M&A market will strengthen over the coming year. And while seven in 10 M&A dealmakers believe a recession will occur in that time, over half of them expect a recession will positively impact deal volume.

"One explanation for this bullish outlook: Even with the steady march of rate hikes and price increases, dealmakers who have stockpiled dry powder will be able to capitalize on lowered valuations and engage in deals,” said Thomas Vaughn, co-leader of Dykema’s Mergers & Acquisitions practice. "Distressed and turnaround deals also thrive during economic downturns – another factor contributing to this optimism."

“The fact that 80 percent of respondents anticipate an increase in private M&A deal activity speaks to how resilient the dealmaking landscape is,” said Frank Ballantine, Dykema M&A Survey Leader. “For now, economic conditions are unlikely to spur a further dramatic slowdown in deals, but instead shift activity toward more promising sectors.”

From “Dealmakers Cautiously Optimistic About U.S. M&A Activity in 2023” by Dykema


5. How one set of operators is realizing their dream of building something worth building

Twitter avatar for @joshuamschultz
Josh Schultz @joshuamschultz
1 year ago I joined up with @RegZeller to help build Canekast, bringing it from single plant to manufacturing platform Keep reading for - 29 projects we implemented - 8 stats showing our insane progress - 7 reminders and lessons along the way
2:44 PM ∙ Nov 3, 2022
130Likes11Retweets

Loved what you read? Subscribe to Take Five to get our top quick reads every week from the team at Kumo. Kumo aggregates thousands of sources into one easy-to-use platform so that you can spend less time sourcing, and more time closing deals.

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