Sat.Oct 12, 2024

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Dear SaaStr: Why Are Buyers Not Ready to Spend Big on Acquisitions as Readily Today as in the Past?

SaaStr

Dear SaaStr: Why Are Buyers Not Ready to Spend Big on Acquisitions as Readily Today as in the Past? In tech at least, there are two big issues: #1. Revenues Multiples Are Down Even the best public SaaS companies are worth ~10x revenue today. In 2021, they were often worth 40x revenue. So that seems to make deals more expensive in terms of how much stock (if not cash) it takes to buy something.

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