How to Value a SaaS Business
Home›Research›How to Value a SaaS Business How to Value a SaaS Business Updated October 21, 2026 OverviewWhat buyers look atARRARR multiplesThe Rule of 40Cohort AnalysisNRR and GRREBITDA multiplesPreparationProcess and termsFAQ Short answer Most SaaS companies are valued as a multiple of annual recurring revenue, adjusted for growth, net revenue retention, gross margin and the Rule […]
M&A Closing Conditions: What Can Kill a Deal at the Finish Line
M&A Closing Conditions: Why Deals Fail at the Finish Line Signing a definitive purchase agreement is not the same as closing a transaction. That distinction, obvious in theory, carries enormous practical consequences for every party at the table. Between the moment a deal is announced and the moment consideration changes hands, a transaction remains contingent, […]
M&A Timeline: How Long Does It Take to Sell a Business?
How Long Does It Take to Sell a Business? A Timeline Overview How long does it take to sell a business? The honest answer is that it depends, and the factors driving that variance matter more than any single average figure. Across the middle market, most transactions close somewhere between six and twelve months from […]
Purchase Price Allocation in M&A
What Is Purchase Price Allocation and Why It Matters in M&A Purchase price allocation (PPA) is the accounting and tax process by which a buyer assigns the total consideration paid in an acquisition to each identifiable asset acquired and each liability assumed, with any residual amount recognized as goodwill. Under U.S. GAAP, the process is […]
Seller Financing in M&A: When and Why
Seller financing in M&A represents one of the most versatile tools in the dealmaker’s toolkit, yet it remains misunderstood by many business owners approaching a transaction for the first time. When a seller agrees to “carry paper,” they effectively become a lender to the buyer, accepting payment for a portion of the purchase price over […]
Rollover Equity: When to Keep Skin in the Game
Private equity buyers rarely write a check for 100% cash at closing. Instead, they structure deals with a blend of cash consideration, debt financing, and rollover equity from the seller. For business owners evaluating a PE offer, rollover equity represents both an opportunity and a calculated risk: the chance to participate in future value creation […]
Non-Compete Agreements in M&A: Structure, Enforceability, and Strategic Considerations
Home›Research›Non-Compete Agreements in M&A Non-Compete Agreements in M&A: Structure, Enforceability, and Strategic Considerations Published March 9, 2026Updated October 21, 2026 By Jeff Barrington, Founder and Managing Director OverviewLegal FrameworkDurationGeographyActivity ScopeCarve-outsTaxState lawFTC ruleEnforcement MechanismsDraftingOther documentsIn practiceConclusionFAQ In brief A non-compete in M&A is a covenant in which the seller agrees not to compete with the business […]
M&A Escrow: How It Works and How to Negotiate
Escrow mechanisms stand as one of the most critical risk allocation tools in mergers and acquisitions. When a buyer acquires a company, the transaction closes with immediate payment, yet many potential liabilities remain unknown or unresolved. The seller walks away with proceeds, but what happens when undisclosed tax liabilities surface six months later? Or when […]
Indemnification in M&A: What Sellers Need to Know
Home›Research›Indemnification in M&A Indemnification in M&A: What Sellers Need to Know Published March 6, 2026Updated October 21, 2026 By Jeff Barrington, Founder and Managing Director OverviewThe Economic FunctionStandard IndemnificationEscrowPurchase Price AdjustmentsSpecial IndemnificationExamplesNegotiation StrategyInsurance SolutionsCommon PitfallsDeal structuresPost-Closing Claims ManagementOutlookConclusionFAQ In brief Indemnification is the purchase agreement mechanism through which a buyer recovers post-closing losses from breached […]
Earn-Out Guide: Structuring Deferred Consideration in M&A
Home›Research›Earn-Out Guide Earn-Out Guide: Structuring Deferred Consideration in M&A Updated October 21, 2026 OverviewDefinitionWhen usedFrequencyStructuresPayment termsOperating CovenantsDisputesPitfallsNegotiation StrategiesTax and AccountingConclusionFAQ In brief An earn-out is deferred consideration that the buyer pays only if the business reaches agreed targets after closing, usually revenue or EBITDA over one to four years. SRS Acquiom’s 2026 study found earn-outs […]