How Software M&A Now Prices in Customer Willingness to Pay

Episode 100 of Tech M&A with Fexingo. Lucas and Luna dive into how acquirers are increasingly pricing software targets based on customers' willingness to pay — using transaction-level data to assess pricing power and churn risk. They examine a real mid-market case: a $200 million HR SaaS acquisition where the buyer forced a 15% price increase post-close and lost 40% of customers within six months. Lucas explains how willingness-to-pay analysis now rivals ARR as a valuation metric, and why acquirers like Vista Equity and Thoma Bravo are hiring behavioral economists. The episode also touches on Adobe's 16% price hike last year and the backlash that followed. A practical look at a subtle but powerful shift in tech deal-making. #SoftwareM&A #TechAcquisitions #WillingnessToPay #PricingPower #SaaSValuation #ChurnRisk #HRTech #Adobe #VistaEquity #ThomaBravo #BehavioralEconomics #ARRMetrics #CustomerRetention #MAndAPricing #Business #TechDeals #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo