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The post LinkedIn: The Greatest B2B Acquisition of All Time? LinkedIn is at $17 Billion in ARR, still growing 10%, and its whole division is wildly profitable with 50%+ operating margins! There may be better M&A deals in the history of B2B. But there cant be too many better ones. appeared first on SaaStr.
Dear SaaStr: Why Are Buyers Not Ready to Spend Big on Acquisitions as Readily Today as in the Past? The Adobe acquisition of Figma will not go through after 15 months of regulatory review. In tech at least, there are two big issues: #1. Revenues Multiples Are Down Even the best public SaaS companies are worth ~10x revenue today.
What drives the acquisition market of startups? If there are any increases, they tend to be in the bigger acquisitions of $500 million or more - although the sample size there is sufficiently small to conclude the trend is significant. Multi-billion dollar acquisitions, the blue bars, are the largest contributors to this swing.
Dear SaaStr: Has Salesforce Overpaid for its Acquisitions, Including the $27.7 Billion Acquisition of Slack? It needed its top acquisitions to keep growing. In acquisitions, what’s much more important is that a few deals really perform over time. Billion Acquisition of Slack? It needed them. Without them?
In today’s complex business landscape, treating payments as just a software feature is a missed opportunity for significant growth and customer acquisition. Your payments integration is more powerful than you think. With the right partner, payments can become a strategy that leads to competitive advantages.
I reviewed the roughly 560 US software acquisitions under $400m since January 1, 2020. ServiceNow tops the list with 5 acquisitions. Recruiter.com prefers small acquisitions: 4 purchases during the period, totalling less than $12m in value. Number of Acquisitions. To answer the question. Alphabet ingested 4 companies.
And it reminded me of a stretch when over 6 months or so, I met with a series of entrepreneurs that turned down pretty attractive acquisition offers, relatively early in their lifecycle: SaaS Co. #1 Every Big Tech company has a budget for sub-$100m acquisitions. Some are for “tuck-in” acquisition to fill feature gaps.
Dear SaaStr: Do Shares Get “Forward Vested in an Acquisition? One way or another, any acceleration is often (but certainly not always) re-negotiated in acquisitions, especially of earliest-stage companies. I.e., if you get fired after an acquisition, all your stock then accelerates vesting? But part of it.
There really aren’t that many good acquisitions done a year. The best way to maximize the odds a decent ROI acquisition is feasible is to (x) raise the least amount of capital necessary to still (y) build a category winner, or at least, a potential category winner. And start early. That’s a pretty nuanced play.
This report aims to highlight the current state of B2B database and contact acquisition strategies and organizations’ goals to leverage data to fuel their go-to-market strategies in 2020 and beyond. As buyer expectations to receive this type of relevant engagement continues to heighten, database management strategies are of high importance.
He summarized the M&A (acquisitions) of The Top 10 Software Acquirers. This makes M&A (acquisitions) less attractive. BigTech really will struggle to make any $1B+ acquisitions for real if antitrust somewhere will block it, like Figma and Adobe. But mega PE firms Thoma Bravo, Vista, etc. The bar to IPO sure seems high.
Zendesk & Anaplan announced their acquisitions within days of each other & their multiples bound the outer edges of the range: 5.1x & 13.4x. The more free cash the company produces, the lower the acquisition multiple. Curiously, free-cash flow margin correlates to forward-revenue/EV multiples at -0.996.
Dear SaaStr: What Do Founders Need to Know to Navigate a Merger/Acquisition? For most of us, especially if the acquisition is after years of doing it “our way” — that can be very frustrating. My #1 tip: Get Zen. Once you sell it, it is not yours anymore. And both your upside and your downside are now capped. You will have a boss.
Dear SaaStr: We’ve Gotten a Good But Not Great Acquisition Offer. The post Dear SaaStr: We’ve Gotten a Good But Not Great Acquisition Offer. Should I Take It? Should you sell your startup if you get a good M&A offer? I’ve seen a second good one just never come again, or come too late, too many times.
As the eyes and ears of an organization, Customer Success can drive acquisition, expansion, and retention. But without a clear understanding of a product’s capability, or the value it creates for customers, churn is unavoidable.
But it also viscerally shows how much the bar has changed for a $10B PE acquisition in SaaS in just a few months. The post Zendesk and Anaplan: A Tale of Two Very Similar, And Very Different, $10B SaaS Acquisitions appeared first on SaaStr. (And yes, Zendesk also said No to another PE offer months prior at a much higher price).
Similarly, acquisitions don’t cost that much, especially if they are done with cash by a BigCo with a ton of cash (stock deals without buybacks lead to dilution, and thus, lower earnings). A $1B acquisition sounds like a lot, and it is. So no BigCo wants to overpay for acquisitions or corporate VC investments.
This time, on Mergers & Acquisitions. My biggest take-away: there are barely more than 50 acquisitions of $50,000,000 or more, at least disclosed one, in software of U.S.-based The post There Are Only ~58 Acquisitions of $50m+ or More in Software a Year per Theory Ventures appeared first on SaaStr. By dollars, yes.
The post The Private Equity Math of 1+1=3 in SaaS Acquisitions appeared first on SaaStr. I’ve literally talked to 2 founders doing tens of millions in ARR in the past 3 weeks that got similar offers. Not as big as the deals above ;). But substantial. It just takes time to get that big.
In this webinar, product-led growth pioneer Wes Bush will examine what the top PLG companies have in common, take an in-depth look at features and usage analytics, and explain how to use this information as the primary driver for customer acquisition, retention, and expansion. The important aspects of a great product-led strategy.
Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition? The post Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition? A few thoughts on retention compensation when you are acquired. First, understand that the acquirer almost certainly already has a strong sense of what they want to do (right or wrong).
Dear SaaStr: Is It Really Fair CEOs Make So, So Much More Than Everyone Else in an IPO or Acquisition? Honestly, I struggled with this for a while myself the first few acquisitions I witnessed from the sidelines. The post Dear SaaStr: Is It Really Fair CEOs Make So, So Much More Than Everyone Else in an IPO or Acquisition?
Dear SaaStr: How Would You Invest a 5 Million Dollar Payout From an Acquisition? The post Dear SaaStr: How Would You Invest a 5 Million Dollar Payout From an Acquisition? Bear in mind I’m not a CFA, CPA, or professional financial advisor. But I have been through it. It’s hard enough to make $5,000,000. Almost no one does.
In my experience, hiring an investment bank to help you in any acquisition > $100m or so is critical. Also note: one big benefit of a PE acquisition is you don’t have to stay if you don’t want to. They Ran a Crisp, Tight Process And Got 4 Offers to Buy Them. 3 Came from the Investment Bank They Hired.
Speaker: Brian Chang, Managing Director of Warburg Pincus & Scott Schwan, Chief Product Officer of A-LIGN
While there is no clear-cut answer, many organizations will raise capital to support the cost of growth –– to help drive customer acquisition, deploy a go-to-market strategy, and scale the team. But how do you truly get to that coveted phase of continued growth and profitability?
Having been through 4 acquisitions in different forms (founder, exec, etc), it’s a lot like a venture capital investment. The acquirer may not even really figure out what they really want to do until the second year or so after the acquisition. Dear SaaStr: What Really Happens When a Company Buys Another One? The real work starts.
Similarly, acquisitions don’t cost that much, especially if they are done with cash by a BigCo with a ton of cash (stock deals without buybacks lead to dilution, and thus, lower earnings). A $1B acquisition sounds like a lot, and it is. So no BigCo wants to overpay for acquisitions or corporate VC investments.
Dear SaaStr: How Hard is it For a Startup founder/CEO to Settle Into a non-CEO Role After an Acquisition? A bit more here: What are some general tips for conduct during acquisition talks? The post Dear SaaStr: How Hard is it For a Startup founder/CEO to Settle Into a non-CEO Role After an Acquisition? It is tough for most of us.
62,526 Views: “From 2 Weeks of Runway to $1B Acquisition: The Founder Playbook with Loom’s CEO and Co-Founder” #5. 46,771 Views: “From Burn-Out to $100M in ARR with Jason Cohen, Founder of WP Engine” #6. 36,000 Views: “Twilio: The Inside Story with Jeff Lawson, CEO/Co-Founder” #9.
Speaker: Christopher Ryan, Founder and CEO of Fusion Marketing Partners
However, Sales & Marketing departments that work together will guarantee the opposite - higher acquisition, better nurturing, and more effective sales. When these two vital parts of your company’s generating program are at odds, it guarantees only one thing at the end of the day: fewer prospects, fewer qualified leads, and fewer sales.
How to Make an Acquired Second Act Work In 2021, BILL completed its acquisition of Divvy , a Leader in Spend Management for SMBs. acquisition. René wanted everything to fit together like a glove, but it was a big acquisition, with over 7,500 customers joining. One advantage at BILL is all the bills inside of BILL.
3 Unexpected Learnings from Datadog’s Marketing Playbook Press relations and analyst activities often contribute almost nothing to the bottom line – Datadog found that many “standard” marketing activities didn’t actually drive customer acquisition or revenue, despite their visibility.
Your customer acquisition costs need to be low — in all segments of the market. But after that, sometimes you really do need to be working on a big second product. Sometimes, the market just isn’t big enough for Product #1 alone to get you to $100m+ ARR growing at a decent clip.
But don’t expect it to be much more than 10%-20% of your total customer acquisition. And keep doing anything in digital that makes you back even $1 for each $1 spent. It’s a customer you probably wouldn’t already get. There are some magicians that can do better, but they really are … magiciains.
Billion acquisition of HashiCorp. About Dave McJannet: Dave McJannet is the CEO of HashiCorp, and led the company from early-stage to its successful IPO and $6B+ acquisition yb IBM. The last IPO of the 2020-2021 era was HashiCorp in December 2021. And it’s one of the first to be acquired! IBM just closed on its $6.4
We’ll share the answers in today’s brand new episode of CRO Confidential, where our host Sam Blond, partner at Founders Fund, sits down with Toast CRO, Jonathan Vassil to talk about their proven customer acquisition strategies that led to its record-breaking growth. Jonathan joined Toast as the SVP of Sales in 2017.
The post GTM 126: Reverse Engineering the Founder Journey: From Scaling Twitter Ads to $650M, 20 Years Operating, and a Webflow Acquisition | Guy Yalif appeared first on GTMnow. I thought I was at equilibrium, and I didn’t know they were up in that way. And when I reflected on what was it, it was specifically that.
3: Payback Periods + Quotas Have Jointly Increased The number of months required to recoup the cost of customer acquisition has increased by 12% on average, which is linear with the increase in sales cycles. That’s where things are the most challenging. And this is true across all of software and AI. #3:
The SMB sales team was incentivized purely on logo acquisition rather than revenue. ” Quickly, Lindsey found that comp plans weren’t aligned with Checkr’s revenue goals and incentives. She explains: “Our smallest segment sales team was focused on activating customers.
Driving revenue through acquisition, expansion, and retention. Frontline managers will have acute awareness of what’s working and what’s not. They’ll be the first ones to tell you what’s working and what’s not on calls with prospective customers. Shaping and maintaining company culture.
The Big Acquisitions Are Doing Well. Only 21% of Salesforce’s Revenue is from … Sales This has been true for many years, but it often comes as a surprise to those that don’t know the company as well as they know its CRM. #2.
The post The Role of Being Social in Customer Acquisition with Courtney Krstich appeared first on Predictable Revenue. You dont need the perfect product from day one to turn an idea into a business. You need constant validation, adaptation, and execution.
Efficient Growth : Word-of-mouth in tight-knit industries reduces customer acquisition costs. Lower Churn : When software is deeply embedded in industry workflows, switching costs become naturally high. Expansion Revenue: Deep industry understanding reveals natural expansion opportunities in adjacent workflows.
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