Setting the Salesforce/Tableau Acquisition in Context

Tom Tunguz

Let’s put this acquisition in context. First, it’s the third business intelligence related acquisition in the past month. Google announced the Looker acquisition last week. Yesterday, Salesforce announced it would acquire Tableau for $15.7B.

Three Secrets to a Successful Acquisition

SaaStr

An acquisition can make or break your startup. Take IBM’s recent purchase of RedHat to accelerate hybrid cloud adoption, or Salesforce’s acquisition of Mulesoft to coordinate, unlock, and integrate customer data better than any competitor. As a former M&A attorney and serial SaaS founder myself, I’ve experienced acquisitions from every point of view. Always always always check to make sure you have clean rights to an acquisition target’s technology.

The Age of the $1 Billion+ Acquisition in SaaS Has Just Begun

SaaStr

And their largest acquisition to date at the time was (drumroll, please) $15m. Not every company is acquisitive (see, e.g. Apple, Workday, etc). But most end up doing more and more acquisitions over time.

Build a sustainable customer acquisition strategy

Inside Intercom

The best way to improve your customer acquisition is to have a set strategy – one where you know how you’re going to generate demand, what you’re spending on these efforts and how you’re going to convert visitors into paying customers. What is customer acquisition?

Aligning SaaS Customer Acquisition

Chaotic Flow

SaaS customer acquisition should focus on maximizing available market penetration, not increasing available market size, and to do that you have to have a very clear picture of your target SaaS customers. SaaS businesses can be overwhelmingly complex.

Customer Acquisition: What Everyone Gets Wrong in 2019 [Guide]

ProfitWell

What is customer acquisition? Customer acquisition is the process of gaining new customers. Customer acquisition is one of the most popular growth levers for SaaS businesses because it is the most literal way to grow your customer base. When is customer acquisition important?

What do founders need to know to successfully navigate a merger/acquisition?

SaaStr

For most of us, especially if the acquisition is after years of doing it “our way” — that can be very frustrating. The post What do founders need to know to successfully navigate a merger/acquisition? My #1 tip: Get Zen. Once you sell it, it is not yours anymore.

SaaS Marketing | Accelerating Customer Acquisition

Chaotic Flow

SaaS marketing professionals know that customer acquisition is the name of the game. What they generally don’t know is that sustainable SaaS growth requires accelerating customer acquisition. Every buyer bottleneck removed accelerates customer acquisition.

Disrupting the Desk Phone: How and Why We Made a $50M Acquisition with Dialpad (Video + Transcript)

SaaStr

Thanks so much everyone for joining us for our fireside chat today, disrupting the desk phone: how and why we made a $50 million acquisition. And when I was at Google, we did a couple acquisitions. When the acquisition offer came, Craig and I were just talking about this.

Three Observations About the Adobe/Marketo Acquisition

Tom Tunguz

trailing twelve months, the third highest multiple for large software acquisitions. In fact, relative to acquisitions of software companies growing at similar rates, at $4.75B, Third, the multiple expansion in the SaaS market continues, and it’s incredible. About two years ago, Marketo was publicly traded and valued at roughly $1.1B. Vista Equity paid $1.8B to take the company private, a 64% premium.

What is customer acquisition cost and why does it matter?

Inside Intercom

How to think about costs in your customer acquisition strategy. If all you care about is optimizing for customer acquisition, you might think all five ads were created equal and allocate your budget accordingly. What is Customer Acquisition Cost (CAC)?

Red Hat's Acquisition - A Triumph of Open Source

Tom Tunguz

Over the weekend, IBM announced the largest software acquisition of Red Hat, an open-source software company, for $35B. It is the largest software acquisition in history, and the third largest technology acquisition (Dell/EMC at $67B and JDS/SDL for $41B were both larger hardware mergers). Three of the largest software acquisitions of the last ten years have been open source. Relative to other multiples paid this year, this acquisition price isn’t an extreme.

Customer Acquisition Spending: Lessons from Workday

Practical Advice on SaaS marketing

Specifically, it illustrates the need for software-as-a-service (SaaS) companies to spend money - lots of it - on customer acquisition. times more on customer acquisition than annual revenues, and in 2007 it spent nearly 18 times more than annual revenues.

Tracking Customer Acquisition in SaaS

Pierre Lechelle

When was the last time you invested money into Customer Acquisition? Tracking Customer Acquisition can solve all […]. Cet article Tracking Customer Acquisition in SaaS est apparu en premier sur Pierre Lechelle. Are you a CMO?

The Things Nobody Tells You About An $8B Acquisition with Ryan Smith from Qualtrics (Video + Transcript)

SaaStr

Join Qualtrics Co-Founder and CEO alongside SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Ryan Smith: The backstory here is we turned down an acquisition offer for $500 million in 2012.

Seven Strategic Rationales for the Microsoft/Github Acquisition

Tom Tunguz

It’s a massive acquisition at a massive price relative to other software acquisitions. The Skype acquisition was also about identity, consumer identity. This acquisition capstones the commitment. Microsoft’s acquisition of Github is a bold strategic bet that will position Microsoft at the forefront of open-source and reinforce their strength in the Cloud Wars Last week, Microsoft acquired Github for $7.5B.

SaaS acquisitions can be tricky

Practical Advice on SaaS marketing

Having lived through several acquisitions during my career in technology companies, I have some idea of what the folks at SuccessFactors (acquired by SAP last year) and Taleo (acquired by Oracle a few weeks ago) are going through. One reason behind the acquisitions of software-as-a-service (SaaS) companies is the high cost of sales and marketing. Even well-established SaaS companies typically pay 40 percent or more of their annual revenue on customer acquisition.

5 customer acquisition strategies for winning new customers

Inside Intercom

All future growth hinges on one thing – customer acquisition. While this may sound simple, it can be incredibly challenging to find new opportunities for growth and customer acquisition in an increasingly crowded marketplace. To help you understand and improve your customer acquisition, we asked SaaS leaders within and outside of Intercom to reveal their top customer acquisition tactics. Mobilize your influencers to drive customer acquisition.

What Is a Platform Acquisition?

Divestopedia

Building your business through acquisition (either as the acquiree or acquirer) is a sound strategy. Use established businesses as a platform to bolster your industry presence. This article will show you how and why

What Is Customer Acquisition Cost ?

Rakam

The purpose of every marketer is to help their company to achieve growth. Best marketers don’t just focus on growth are they focus on sustainable growth in the long term. Most of the times marketing professionals forget about the long term part of the growth and just focus on making business decisions to acquire new customers without thinking about the costs. So how do we think about the long term part of the growth and whether our marketing strategies are efficient or not

The future of customer acquisition with HubSpot’s Meghan Keaney Anderson

Inside Intercom

We specifically wanted to pick her brain all about customer acquisition : just how does HubSpot do it, and what marketing tactics do they deploy? ” Emerging customer acquisition channels. And cost-per-acquisition itself is up 50% over the past five years.

The Latent Purchasing Power in the SaaS Acquisition Market

Tom Tunguz

The startup acquisition market is off by roughly 35% year-over-year. If it does happen, and when acquirers do decide to pursue acquisitions, I suspect we will enter a very acquisitive environment for three reasons. First, the cash available to finance acquisitions on the balance sheets of public companies has grown by 20 X over the last 10 years and now totals more than $8.5 Why the decline?

SaaS acquisitions: It's about money and genes

Practical Advice on SaaS marketing

Another week, another software-as-a-service (SaaS) acquisition. To be more accurate, it's really "another week, another four SaaS acquisitions." Among the more prominent purchases, Oracle bought Vitrue, following its acquisitions of Taleo and RightNow. billion, while it's still digesting its earlier multi-billion acquisition of SuccessFactors. acquisitions customer acquisition organization SaaS marketing

Trends In Startup Acquisition Market in 2015

Tom Tunguz

This time last year, I analyzed the state of the startup acquisition market. First, the larger acquisitions were becoming larger. Second, that the total number of acquisitions in 2014 would achieve a 5 year high. The median acquisition price for technology companies in Crunchbase’s data set is plotted above, bucketed by size. For example, the $500M bucket marked in yellow includes all acquisitions between $100M and $500M.

Trends 100

How Will DiscoverOrg’s Acquisition of ZoomInfo Affect Sellers?

Sales Hacker

A few months ago we wrote about Zoominfo’s acquisition of Datanyze in an effort to strengthen its sales intelligence engine. In conclusion, we believe this acquisition is a healthy one for the ecosystem, despite the fact that it does produce some challenges as well.

Why Amazon's Acquisition of Whole Foods Matters for Startupland

Tom Tunguz

Amazon’s acquisition of Whole Foods is notable for many reasons. Third, the acquisition underscores the importance of physical retail even to the largest American ecommerce giant. However, the most interesting part of this acquisition is that it marks the current apotheosis of technology’s impact in the broader economy. But, Amazon’s acquisition of Whole Foods is the reverse: a leading technology company buying a leader of a traditional industry.

How Big is a Typical Software Company Acquisition?

Tom Tunguz

Last, M&A activity seems quite brisk with more than 30 $1B+ billion acquisitions in the last nine months alone. How do all these factors commingle to influence today’s acquisition environment? 2016 is on pace to match the past three years of software acquisition trends which vary from $64B-$70B. However, in 2016 the total number of acquisitions will likely fall by 40% from an average of 150 per year to 92. Fewer acquisitions at higher prices.

How To Reduce Customer Acquisition Cost (CAC)

Rakam

In this article, I will share some tips to reduce your CAC to have more profitable customer acquisition channels. In my previous article, I talked about the importance of adding CAC metric to your marketing mix. There are a few things you can do to lower your CAC, but here I will talk about the ones I find it most useful. Clearly Define Your Target Persona It’s essential to know whom you should target with your marketing activities

SaaStr Podcast 215: Ryan Smith, Qualtrics Co-Founder & CEO On The Things Nobody Tells You About an $8 Billion Acquisition

SaaStr

Qualtrics Co-Founder and CEO Ryan Smith sits down with SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Here’s what Jason and Ryan talk about: Why did Qualtrics turn down a $500M acquisition offer in 2012?

Trends in the Startup Acquisition Market

Tom Tunguz

See an updated version of this post: Trends in the Startup Acquisition Market in 2015. I was curious how the strength of the IPO market has impacted the acquisition market. In particular, how the number and value of startup acquisitions has changed, and more specifically, whether there are any trends in the sizes of acquisitions. To get a better sense of these trends, I’ve analyzed the Crunchbase acquisition data for US tech companies over the last 4.5

Trends 100

The Relationship Between Margins and Acquisition Prices

Tom Tunguz

Over sushi, a friend explained to me that this strategy might also extend to the way the company views acquisitions. Amazon operates its businesses at very close to break-even, zero net margin, to win the greatest share and prevent competition from undercutting them.

Remind customers why they're paying you

Practical Advice on SaaS marketing

attrition churn customer acquisition renewals SaaS marketing

Churn 173

Subscription price and customer acquisition costs

Practical Advice on SaaS marketing

For most SaaS companies, the customer acquisition costs will be the single largest on-going expense for their business. It's useful only in relation to costs, especially customer acquisition costs.

Preparing For Acquisition - The Due Diligence Checklist

Cardin Partners

Below are a few tips for operating your business so that you’re continuously ready for acquisition: 1) Have your house in order It is important that a potential buyer knows that your house is in order. Preparing to sell your company requires a lot of work.

How Salesforce’s Tableau acquisition will impact IT

IT World

billion bid for Tableau Software has many organizations wondering how the proposed acquisition will impact their operations. Salesforce.com’s $15.7 According to industry analysts, it all depends on how your enterprise makes use of their respective platforms.

What is Your SaaS Startup Worth in an Acquisition?

Tom Tunguz

What is your SaaS startup worth in an acquisition? What is your SaaS startup worth in an acquisition? The chart above shows the median multiple across all software acquisitions. This figure takes into account all acquisitions, including old and slow growing software companies. To answer that question, we can analyze the data set of all software companies acquired over the last six years and benchmark them by enterprise value-to-revenue multiples.

How to Cut Customer Acquisition Costs

Practical Advice on SaaS marketing

Cost-effective marketing is especially important for SaaS Most SaaS companies will find that their customer acquisition costs (sales & marketing) will account for the single largest portion of their expenses. See " Hyper-Spending on Customer Acquisition: The Wile E.

The Impact to Startups of the LinkedIn Acquisition

Tom Tunguz

The acquisition frenzy continues in SaaS. In the 2016 acquisition market, the median acquisition multiple is 7.8x The LinkedIn acquisition in particular is a strategic move by Microsoft. With the acquisition of LinkedIn’s data set, Microsoft will have an opportunity to both continue to grow the existing business by selling it through its channels, differentiate its CRM product, Dynamics, and offer a sales productivity tool in Sales Navigator.

How to Build Auction Pressure in Acquisitions and Financings

Tom Tunguz

Public companies are often required to disclose the process of their acquisition. LinkedIn’s sale to Microsoft is described step by step in an SEC disclosure and it offers both a peek into how these massive acquisitions are consummated, and also illustrates the best practices for how to run a process, both acquisitions and fundraisings. This is auction pressure and it’s a classic example of how to run a fundraising or acquisition process

Sales Hacker Doubles Down: What We’re Focusing On 1 Year After Acquisition

Sales Hacker

But more on that later… Going into the acquisition, Manny Medina (the CEO of Outreach) and I knew how important it would be to let Sales Hacker continue operating independently. 12 months ago, Sales Hacker was acquired by Outreach.

Forrester & SiriusDecisions Acquisition: Ripple Effects for Chief Revenue Officers Everywhere

Sales Hacker

The acquisition highlights a number of important strategic considerations for CRO’s and sales leaders everywhere. First, this acquisition highlights the need to be able to reach new verticals and new roles. Second, the acquisition highlights the increasing importance of data.

The Typical Billion Dollar Startup Acquisition

Tom Tunguz

As for the structure of the acquisition, there’s data that can be used for benchmarking. The x-axis shows the Acquisition Value in $M and the y-axis shows the cash share. First, 83% of these acquisitions were cash only. Third, a power law governs acquisitions. The second chart, below, is a boxplot of the cash share of the acquisition. In the dot-com boom, when stock was cheap and plentiful, many acquisitions had considerable stock components.

How to Supercharge Customer Acquisition with 4 Unconventional Outreach Tactics

Sales Hacker

The post How to Supercharge Customer Acquisition with 4 Unconventional Outreach Tactics appeared first on Sales Hacker. Sales & Marketing Webinar Webinars