In today’s ever-evolving tech investment landscape, understanding how to evaluate recurring revenue is critical—especially for private equity funds investing in cloud services, software-as-a-service (SaaS) and other subscription-based businesses.
In this episode of Acquire. Optimize. Realize., a video series by Cherry Bekaert’s private equity practice, Cameron Smith and Sean Geoghan dive into the mechanics of recurring revenue valuations (RRV), a due diligence approach that can impact how deals are structured, priced and financed.
Listen to learn more about:
- The current state of technology mergers and acquisitions (M&A) environment
- The added value RRV analysis brings for lenders and sponsors
- The utilization of key performance indicators (KPIs), like the “Rule of 40,” to evaluate company growth and profitability
Whether you're evaluating a SaaS acquisition or exploring how recurring revenue models are expanding into financial services or other sectors with recurring contracts, this is an important introduction for anyone executing technology sector M&A, including buyers, sellers and their financial advisors. Cherry Bekaert’s Private Equity Industry team stands ready to advise and assist throughout the deal lifecycle.
