1Q25 Software M&A Update with Jim Williams

Jan 29, 2025

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Welcome back to The SaaS CFO Podcast! In this special edition, our host Ben Murray is joined once again by Jim Williams, Managing Director at GLC Advisors, to delve into the dynamic world of software mergers and acquisitions (M&A). Jim brings his wealth of experience and insights to provide a comprehensive overview of the current state of the market, including recent trends, deal volumes, and valuations.

Ben and Jim explore the essential metrics that SaaS founders need to focus on, such as retention rates, growth, and gross margins. They discuss the importance of understanding your business model and revenue streams, especially in today's fluctuating market. Whether you're considering an exit or aiming to scale, their discussion provides actionable advice on how to prepare your business for potential acquisition and the type of deal structures you might encounter.

Topping it all off, Jim shares his optimistic forecast for 2025, discussing the potential for increased deal volumes, better valuations, and the exciting opportunities for both platform and add-on deals. This episode is a must-watch for anyone interested in the intricacies of the SaaS M&A landscape. Don't miss out on this insightful conversation filled with practical advice and expert predictions!

Show Notes:

00:00 Software M&A Market Trends

06:01 Evolving SaaS Revenue Models

06:50 Evaluating Revenue Models for Investors

12:48 Clear Storytelling for Business Success

16:15 Navigating Valuation Gaps in Markets

19:15 High Multiples for Top Businesses

20:24 Market Challenges in Business Quality

24:37 Sponsor Leverage in Platform Deals

29:15 Cash Out or Rollover Equity?

33:08 Equity Ownership and Commitment Terms

36:46 Seller's Market: Scarcity Premiums Heightened