Season B - Ep. 6: Diamond Innabi, Vice President at Software Equity Group, on SaaS Valuation and M&A

Diamond discussed SaaS valuation and how multiples have changed over the past several years, the main drivers of multiples, and M&A market trends.BIODiamond Innabi is a Vice President at Software Equity Group, a boutique investment bank focused on B2B software companies. Over her nearly a decade career at SEG, she was instrumental in numerous M&A transactions involving public and private companies as well as private equity funds.TIMESTAMPS1:45 Why are SaaS companies valued at a multiple of revenue or ARR?4:00 Drivers of SaaS Valuation and how they have changed in the current environment6:30 Mission-critical software7:50 Multiples over 5 years9:05 SaaS valuation during COVID10:00 Comps contribution to assigning multiples11:25 On-prem vs cloud valuation14:20 Buyers and Sellers16:20 Most durable SaaS categories17:15 Recommendation to sellers19:30 Calculation of Gross MarginsClick the following links to "double-click" on Diamond's comments about M&A Update, The Rule of 40, Gross Margin impact, and COGSSeason B is Sponsored by CELIGO, IPaaS for Mid-Market companies.SIGN UP at https://www.saashimi.cloud to receive transcripts of the interviews and news about upcoming guests and events.