The Software Equity Group’s Q1 2021 M&A Update & SaaS Public Market Update show continued record valuations for both on-premise and SaaS firms. Median EV/Revenue multiples for public SaaS companies reached 14.2x. Once again, private equity drove more than 50% of the transactions.
There is a ton of information from thought leaders about product managers build/buy/decision making. Do product managers really have a choice?
There are hundreds of suggested formats for product management business cases – from Lean Startup to private equity inspired Harvard Business School case studies. Every software company has their own approach to product management business cases. Experience has shown that the process ofbuilding the business case is more important than the models it contains.
Tech M&A and valuations are at an all-time high. There are many different styles used by acquirers – some are friendlier than others. This post describes the spectrum of approaches form the harsh Borg style to the friendly Hippie style employed by FAANG companies. Product managers need to understand the differences between these approaches so they are well prepared in the event of an acquisition.
Product managers should have basic financial literacy, but the implications of new accounting policies like ASC 606 and ASC 606-340 exceed most product manager’s finance capabilities. Instead product managers should become best friends with the Finance organization who can help them navigate this new, complex world. And they might save their products and jobs in the process.
The pace of mergers and acquisitions is accelerating due to the record valuations in today’s market. The chance that your organization could be acquired is greater than ever. Prudent product management leaders should understand how M&A execs analyze and assess product management organizations. This could not only help maximize the valuation of their company, but help them preserve their own role in a merged enterprise.
I talk with SaaS companies that are looking to buy other SaaS companies or sell their own each month. For the past year their comments have been the same. The buyers lament the high valuations sellers expect, and sellers, especially private companies, bemoan the low valuations they are offered. They want to know why private SaaS companies are valued less than their public company peers?
Join Jon Gatrell and me for a webinar entitled “Run a Business, not a Backlog” on Wednesday February 10th, 2021 at 11AM PST, 2PM EST, 7PM GMT hosted by Product Management Today and sponsored by Logi Analytics.
SEG’s Q3 2020 SaaS Index report shows record valuations in spite of Covid-19 crisis
Will the impending recession in 2020 prompt another version of the infamous Sequoia 2008 RIP Good Times presentation?