SaaStr

SEPTEMBER 29, 2022

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).

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Retention Acquisition Compensation Revenue 279

Tom Tunguz

AUGUST 7, 2022

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.

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Acquisition Pricing Startup Revenue 253

SaaStr

JUNE 27, 2022

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).

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SaaS Acquisition Pricing Revenue 327

SaaStr

AUGUST 31, 2021

Q: When should a CEO walk away from an acquisition? I’ve walked from acquisitions where I, to be honest, did want the money but still walked. You have (at least) 4 constituencies in an acquisition: You and your co-founders. The post Dear SaaStr: When Should a CEO Walk Away From an Acquisition Offer? Your employees.

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Acquisition Pricing Startup Cloud 263

SaaStr

AUGUST 19, 2020

Q: Which merger and acquisition trends, if any, do you expect to unfold in the next 12 months? If you are worth $20b-$1T+, you often don’t want to wait for a small acquisition or internal initiative to bear fruit. The post Expect A Lot More $2B+ Acquisitions in SaaS and Cloud appeared first on SaaStr.

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SaaS Acquisition Cloud Revenue 278

Tom Tunguz

JUNE 11, 2019

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. in acquisitions suggests that 2019 will be similarly active as 2018, which saw $66B of acquisitions. in revenue, growing at 29%.

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Acquisition Revenue Software Startup 224

SaaStr

APRIL 11, 2022

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.

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SaaS Acquisition Cloud B2B 273

IT World

SEPTEMBER 7, 2021

But one thing that stayed fairly constant was the steady flow of mergers and acquisitions (M&A) across the tech sector. Among a late flurry of big deals was the $35 billion acquisition of Xilinx by Advanced Micro Devices and Salesforce's $27.7 billion acquisition of Slack. billion acquisition of Slack.

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Acquisition Technology Software Innovation 128

SaaStr

JUNE 6, 2021

Q: After an acquisition, how long before severance packages are offered due to layoffs/downsizing? Layoffs and downsizing are less common in most tech acquisitions today. Having said that, even if they are less common, layoffs and other downsizing still happens all the time after acquisitions. But Here’s When They Happen.

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Acquisition Headcount Investment Finance 192

User Pilot

MARCH 6, 2023

What’s product-led acquisition? TL;DR Product-led acquisition (PLA) is an organic way of growing a customer base through recommendations from existing customers. The benefits of PLA include considerably lower customer acquisition costs, exponential user base growth, and lower dependence on changes in paid advertising.

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Acquisition Scaling Customer Lifetime Value Onboarding 98

SaaStr

NOVEMBER 3, 2020

The other day Coupa did its first $1B+ acquisition, of 18+ year old Llamsoft. There should be a lot more billion+ acquisitions in Cloud and SaaS, if only because there are more decacorns to buy them. But there will be a bunch more $1B+ acquisitions coming in SaaS. . — Jason BeKind Lemkin (@jasonlk) November 2, 2020.

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SaaS Acquisition Cloud Startup 264

IT World

MAY 15, 2023

billion acquisition of gaming studio Activision Blizzard, a month after the UK’s Competition and Markets Authority (CMA) ruled against the deal. The EU Commission today announced its approval of Microsoft’s $68.7

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Acquisition compliance Cloud Development 73

IT World

APRIL 27, 2023

The acquisition is part of Bosch’s strategy to tap into the rising demand for chips globally, especially in the automotive and electronics sector.

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Acquisition Automotive Investment Strategy 83

SaaStr

JUNE 2, 2021

What are strategies to justify a higher valuation for my company in an acquisition? The easiest “strategies” to get a higher price in an acquisition — which admittedly are very hard to deploy quickly : Raise a venture round at a high price. The post Dear SaaStr: What are Some Strategies to Get a Higher Price in an Acquisition?

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Acquisition Pricing Strategy SaaS 190

SaaStr

FEBRUARY 12, 2019

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. Good acquisitions aren’t easy to pull off. I could go on.

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Acquisition Startup SaaS Communication 173

Intercom, Inc.

NOVEMBER 23, 2022

The process of an acquisition is, more often than not, a black box. It’s precisely the success of that integration that often dictates the success of the overall acquisition. It’s precisely the success of that integration that often dictates the success of the overall acquisition. Behind the acquisition.

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Acquisition Churn Subscription SaaS 118

IT World

JANUARY 20, 2022

Computerworld executive editor Ken Mingis and senior reporter Lucas Mearian join Juliet to break down Microsoft’s planned acquisition, including how it relates to the metaverse and what it means for the tech industry. Article: [link] To read this article in full, please click here

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Acquisition Branding 105

Tom Tunguz

OCTOBER 27, 2018

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). This price values the company at a 10.6x

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Acquisition Enterprise Revenue Software 181

SaaStr

MARCH 3, 2020

Q: What was the biggest acquisition failure or missed opportunity by a company? The post What was the biggest acquisition failure or missed opportunity by a company? It’s hard to really force rank a list, especially of deals you don’t know about. And it’s easy to be an arm-chair quarterback on all this. View original question on quora.

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Acquisition SaaS Cloud Enterprise 221

SaaStr

FEBRUARY 11, 2020

Q: What are some of the most overlooked details or challenges when integrating two companies post-acquisition? I can make a long list of challenges and overlooked details in acquisitions, but I think they all stem from 1 issue: not being honest about what things will look like in 24 months: Does the CEO really want to stay?

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Acquisition Headcount Business 212

IT World

JANUARY 10, 2022

But one thing that stayed constant was the steady flow of mergers and acquisitions (M&A) across the tech sector. Although nothing rivalled Xilinx’s $35 billion acquisition of Advanced Micro Devices in 2020, last year did see Intuit buy Mailchimp for $12 billion and Square splash out a princely sum — $29 billion — for Afterpay.

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Acquisition Data 85

SaaStr

MARCH 19, 2019

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. But, what was once impossible (a $1b acquisition) and then rare is now becoming routine. Fast forward to 2019.

SaaS 227

SaaS Acquisition Cloud Software 227

Neil Patel

JUNE 29, 2021

Customer acquisition is a huge pain point for many business owners. What Is Customer Acquisition? Customer acquisition is your business’s process of bringing in new customers. Customer acquisition is your business’s process of bringing in new customers. What Is the Purpose of Customer Acquisition?

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Acquisition Social Media Retention Content Marketing 132

SaaStr

DECEMBER 10, 2019

Q: What happens to the founders after big tech acquisitions? Salesforce is particularly good at minting leaders out of its acquisitions. If the acquirer has leverage, they will often ask for 20%-40% of vested shares to be revested over a period following the acquisition. The sticks are real, too. View original question on quora.

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Acquisition Compensation Retention 139

Tom Tunguz

JUNE 9, 2018

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. Why is Microsoft willing to pay so much? Developer identity. Identity has been critical to Microsoft success.

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Acquisition Azure Enterprise Cloud 190

Intercom, Inc.

NOVEMBER 7, 2018

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. Pure customer acquisition metrics are popular, but dangerously inexact tools for calibrating and scaling your company growth.

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Acquisition Customer Lifetime Value Advertising Finance 202

Baremetrics

AUGUST 1, 2021

So what works (and doesn’t work) as a SaaS acquisition strategy? In this article, you’ll learn 5 keys to building a purpose driven acquisition strategy for your SaaS and how to avoid common mistakes along the way. SaaS Customer Acquisition: Getting the basic right How to Build a Purpose-driven SaaS Customer Acquisition Strategy 1.

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SaaS Acquisition Strategy Churn 91

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Know your numbers.

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Acquisition Startup Metrics Churn 105

Chart Mogul

SEPTEMBER 8, 2021

The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021. Tech is on fire … The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021.

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Acquisition Scaling Startup Entrepreneurship 96

Tom Tunguz

JUNE 18, 2017

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. Third, the acquisition underscores the importance of physical retail even to the largest American ecommerce giant.

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Acquisition Automotive Startup Mobile 188

Sales Hacker

JANUARY 20, 2021

If you know what to look for, acquisitions, mergers, and divestitures can represent that unique opportunity to make the sale of a lifetime. Why Mergers and Acquisitions Offer a Great Opportunity. The 3 Keys to Taking Advantage of Mergers and Acquisitions. Capitalized acquisition funds. Well, good news — there is.

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Acquisition Sales Forecasting Finance 124

Neil Patel

NOVEMBER 9, 2020

Micro startup acquisitions. But before we dive into that, we need to look into what micro startup acquisitions are and why you need to sit up and take notice. Micro Startup Acquisitions: What Are They, and Why Should I Care? Micro Startup Acquisition Trends. That’s an expensive mistake if you make the wrong investment.

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Startup Acquisition SaaS Sales 144

Intercom, Inc.

JULY 13, 2018

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. Mobilize your influencers to drive customer acquisition. Want more advice like this?

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Acquisition Strategy Content Marketing SaaS 156