Continua Software Newsletter #3

Thanks for staying in touch with Continua Software. News we're following Axial is a well-known US based private deal network for lower middle market company transactions. Their Winning LOI series is a fascinating look into small business M&A valuation data and key deal terms. Looking at technology deals reported in the last quarter shows a median EBITDA multiple of 5.6x. Beyond the headline valuation number all deals included an earnout, equity rollover or seller note component. It should go without saying that this data is from a limited set of Axial transactions and inferences are indicative only but it’s a reminder that the purchase multiple you hear about in the press release or via industry gossip only tells half the story.  Life after Acquisition We know that one of the biggest concerns for owners is what happens to their business after handing it off to a new owner. It’s completely understandable—these businesses are built on years, if not decades, of hard work and dedication. We’ve had so many of these conversations that we decided to share some insight into how we handle things post-acquisition. If you’d like to dive into the details, check out our article on Life After Acquisition. And if you’re curious about how this plays out in practice, take a look at our journey with ITD in our first newsletter.  We've Moved Talk about our appreciation for legacy. We've recently moved around the corner to our new heritage office in Adelaide CBD. IF you're around, pop in for a coffee and we can show off the new digs.  Our Acquisition Criteria We are ever on the hunt for the next company to join the Continua family. We're looking for : B2B software headquartered in Australia or New Zealand ~$2m-$10m in recurring revenue >15% profit margins Industry niche Majority - 100% buyout available If you know of a company that may fit this criteria, we'd love to chat. We have a great scout program where you get rewarded for your referrals. Check out the details here.  Continue the Conversation Shane is traveling to Sydney 15/16 of October and Brisbane 23/24 of October and would love to grab some time with friends and founders in the area so please reach out if you’ll be around! You can reach him directly at Shane@continuasoftware.com.