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How The Stange and Odd World of Financial Accounting Drives Tech Acquisitions and Investments

SaaStr

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. The headcount and other ongoing operating costs do add to expenses and hit earnings, however.

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How The Strange and Odd World of Financial Accounting Drives Tech Acquisitions and Investments

SaaStr

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. The headcount and other ongoing operating costs do add to expenses and hit earnings, however.

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Layoffs Are Less Common Today After Acquisitions. But Here’s When They Happen.

SaaStr

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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What are some of the most overlooked details or challenges when integrating two companies post-acquisition?

SaaStr

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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SaaS Is Growing Up: 4 Business Model Changes To Adopt with Notion Capital

SaaStr

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. You don’t want to be there.

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5 Interesting Learnings from Okta at $2 Billion in ARR

SaaStr

They had a bit of dip in growth as they worked to integrate the mega-acquisition of Auth0 — but then went right back to growth. Slowing headcount growth — like lots of others. Okta headcount grew 32% year-over-year, fairly consistent with revenue growth, but then Okta like others slowed down hiring. It only grew 4.5%

Scale 299
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5 Interesting Learnings from Monday.com at $550,000,000 in ARR

SaaStr

SaaS leaders at scale often find their cost per acquisition goes up at scale, at they saturate the market, but Monday has gotten better and better here: #8. Like many tech companies, Monday added a ton of headcount in 2021. It then added only 63 employees last quarter, and plans to continue with very slow headcount for a while.

Headcount 306