Founders recently hosted its Multi-Unit Summit at The Henderson Beach Resort & Spa on the Emerald Coast in Florida. The Founders team, alongside co-hosts Butler Snow, LandrumHR, Paragon HM Wealth Management Group at Morgan Stanley, Retail Strategies, and Warren Averett, welcomed top CEOs and leaders in the multi-unit community to network, enjoy Southern hospitality and…
By: Billy Pritchard What is Deferred Revenue? If a software company offers its customers the ability to prepay on longer-term contracts, Deferred Revenue becomes an important consideration during the transaction process. Generally, a prepayment from the customer creates a future liability for that company to service the customer over the life or term of the…
By: Wesley Legg Cash is king; however, the highest offer doesn’t always seal the deal. This is especially the case when the seller is a founder-based company, i.e., the seller is the founder or an heir of the founder. Most founders, of course, want to maximize value, but that is generally not their sole focus,…
By: Wesley Legg Have you ever visited a friend or family member who lives in a city with major traffic congestion? I live in a smaller city. When hunger strikes my wife and me, and there is no desirable food in the pantry, we get in our car and we go out to eat. That decision…
By: Zane Tarence Companies are generally valued based on their risk adjusted future cash flows. Therefore as cash flows increase (bottom line), the value of the company increases. Normally companies are valued as a multiple of this bottom line, EBITDA (earnings before interest, tax, depreciation, and amortization). If a company generates $10mm in EBITDA and…
Founders’ Q1 2022 SaaS Market Newsletter includes useful tools for SaaS entrepreneurs and investors, highlighting the most recent quarter in which the SaaS industry felt the effects of inflation, a rising interest rate environment, and continued geopolitical uncertainty. Our update includes: What is deferred revenue and how does it impact an M&A transaction? An assessment for SaaS entrepreneurs designed to…