How Tech M&A Now Prices Cloud Infrastructure Costs

Episode 112 of Tech M&A with Fexingo. Lucas and Luna drill into a quietly decisive M&A variable: the target's cloud infrastructure cost structure. With AWS, Azure, and GCP bills often running 30-50% of revenue for SaaS companies, acquirers are now demanding access to cloud cost data during due diligence and adjusting offers based on whether a target is on committed-use discounts, spot instances, or paying on-demand retail rates. Lucas points to a recent mid-market deal where a $200 million ARR SaaS company's acquisition price was discounted by roughly 8% after the buyer discovered the target had never negotiated an enterprise agreement with its cloud provider. Luna connects this to the broader shift toward profitability-focused dealmaking. They also reference the latest market data: Oracle down 8.6% in the past five days amid cloud margin concerns, and Snowflake up 5.6% as its consumption model shows cost predictability. This episode is essential listening for founders building toward an exit and acquirers looking to avoid post-close margin erosion. #CloudInfrastructureCosts #SaaS #M&A #DueDiligence #AWS #Azure #GCP #CloudEconomics #SoftwareAcquisitions #StrategicBuyers #TechDeals #Oracle #Snowflake #Profitability #CloudMargins #FexingoBusiness #BusinessPodcast #TechPodcast Keep every episode free: buymeacoffee.com/fexingo