#94: Practical M&A Advisor Explains SaaS Valuations and Acquisition Trends – Adam Haynes

#94: Practical M&A Advisor Explains SaaS Valuations and Acquisition Trends – Adam Haynes

Author: Greg Head May 24, 2024 Duration: 55:36

Adam Haynes is a managing director at GLC Advisors, an M&A advisory firm that helps bootstrapped founders to successfully sell their companies. The software advisor team at GLC has been working with practical software founders for over 15 years and has completed over 100 software transactions. 

In this expert interview, Adam shares:

  • What has changed in software acquisitions in the last 20 years and recently through 2024
  • What are the valuation ranges and factors for practical SaaS companies under $10M revenue
  • The 7 key areas that founders should be working on several years before an acquisition
  • When should a SaaS founder consider using an M&A advisor

Quote from Adam Haynes, M&A Advisor at GLC Advisors
"When you are selling your company and the buyer is looking at all your challenges and problems, founders should know that deal breakers are very rare. Buyer and seller want to get a deal done, and there are ways to navigate around them. 

"You can't have a software company without tech debt. That's okay. Nothing's perfect, but you need to have a remediation plan for it. If you were going to close a couple of big deals during diligence and you don't, or they get delayed, the valuation may take a hit. Or they might inject some structure like an earn-out if you can get these two deals signed.

"But if you don't own your IP and don't own or clearly license all your code, that's tough to navigate around. Or if you've infringed on somebody. That can be a dealbreaker, but it isn't that common."

Links

The Practical Founders Podcast

Tune into the Practical Founders Podcast for weekly in-depth interviews with founders who have built valuable software companies without big funding. Subscribe to the Practical Founders Podcast using your favorite podcast app.

Get the weekly Practical Founders newsletter and podcast updates at practicalfounders.com


Greg Head hosts the Practical Founders Podcast, a series dedicated to the often-overlooked builders in the technology and business landscape. Each week, the conversation focuses squarely on founders who have successfully scaled their software companies through means other than massive venture capital. You'll hear detailed, candid stories about bootstrapping, profitable growth, and the strategic choices that define a sustainable enterprise. These interviews dig into the real work of building a valuable company-the early decisions, the pivotal mistakes, the practical systems, and the personal resilience required. It’s for entrepreneurs and operators who are more interested in durable ownership and practical execution than in hype or fundraising rounds. By focusing on firsthand experiences, this podcast provides a grounded perspective on entrepreneurship. Listeners gain actionable insights and honest reflections from leaders who have navigated the complexities of building a business on their own terms. The discussions are in-depth and specific, offering a valuable resource for anyone looking to understand the tangible realities of creating a technology company without relying on external funding. This is where the conversation moves beyond theory into the applied lessons of proven founders.
Author: Language: English Episodes: 100

Practical Founders Podcast
Podcast Episodes