VAL · VALUATIONS
Valuation arguments grounded in revenue quality and technical reality
The multiple is only as strong as the operating reality behind it. We pressure-test ARR, margin durability, IP position, revenue concentration, technical debt, and founder dependency before the buyer does.
BEST FIT
Who this service is for, and when to use it.
The mandate follows the constraint, not the menu. This service line solves a specific operating problem; the trigger below tells you when it is the right opening move.
- AUDIENCE
- Founder-CEOs, CFOs, boards, and private equity sponsors preparing for transaction decisions
- TRIGGER
- Use this before a process starts, when a buyer challenges the multiple, or when add-backs and ARR quality need buyer-grade support.
- SERVICE CODE
- VAL
ENGAGEMENT TIMELINE
Valuations primarily lives in turnaround plan.
Each service line lives inside the four-phase operating journey. This phase is where this engagement spends most of its operating cadence.
PHASE 02
Turnaround Plan
Days 15–21
Valuation work sits in planning. The argument has to defend the multiple under buyer scrutiny.
- ARR / MRR quality assessment with revenue concentration adjustment
- Technical debt and IP defensibility valuation deltas
- Pre-LOI cleanup priorities tied to multiple expansion
OPERATOR RESULTS
Valuation has to survive the operating room
The strongest valuation argument is one the operating model can defend. Justin built and exited a services firm while maintaining 22% EBITDA margins, so valuation work here starts with what a buyer can actually verify.
ENGAGEMENT OUTCOMES
What the work produces.
Outcomes are what the engagement leaves behind for the executive team to operate with. They are not intermediate deliverables; they are operating moves.
- OUTCOME 01
- ARR/MRR quality assessment
- OUTCOME 02
- IP and technical debt valuation adjustment
- OUTCOME 03
- Board-ready valuation narrative
The strongest valuation argument is one the operating model can defend. Justin built and exited a services firm while maintaining 22% EBITDA margins, so valuation work here starts with what a buyer can actually verify.
RELATED INTELLIGENCE
Field notes that support valuations.
Read insights
BRIEF · VAL
The 12-Month CAC Payback Myth: What Investors Actually Expect
Stop destroying your enterprise sales engine to hit an impossible metric. Here's why private equity buyers expect 18-24 month CAC payback periods for scaling SaaS companies.
BRIEF · VAL
The AI Wrapper Trap: Why Vendor Dependency is Killing Your Deal Multiple
Private equity firms are overpaying for SaaS companies built on brittle AI APIs. Learn how to evaluate AI vendor dependency, model drift, and COGS risk in M&A.
BRIEF · VAL
AI IP Valuation: Assessing Proprietary Models and Training Data Assets
Acquirers are discounting AI IP by up to 60%. Learn how to value and defend your proprietary models and training data assets before PE due diligence.
BRIEF · VAL
AI Technical Debt Assessment: Why Ungoverned Models Kill Deal Value
Discover why ungoverned AI models introduce massive technical debt. Learn how to assess MLOps maturity, model drift, and governance during M&A due diligence.
BRIEF · VAL
AI Due Diligence Framework: Evaluating GenAI Capabilities in Acquisitions
A 2026 diagnostic framework for private equity operating partners to evaluate GenAI capabilities, identify shadow AI risks, and quantify technical debt in tech M&A.
BRIEF · VAL
The Brittle System Problem: When One Change Breaks Everything
Discover why brittle software systems and tightly coupled architectures trigger 22% M&A valuation discounts and how PE operators can decouple legacy code.
DECISION GUIDES
When this service is the right move.
- Asset Deal vs. Stock Deal: Technology M&A Decision Guide A board-level decision guide for choosing asset deal, stock deal, or hybrid structure in technology middle-market acquisitions.
- Technical Diligence vs. Financial Diligence: Technology M&A Decision Guide A decision guide for choosing technical diligence, financial diligence, or integrated diligence when technology company value depends on both the numbers and the operating system.
- Transaction Advisory Services vs. Investment Banker: M&A Readiness Decision Guide A decision guide for choosing transaction advisory, investment banking, or integrated sell-side readiness support before a technology middle-market M&A process.
OPERATOR RESOURCES
Checklists and scorecards for this service line.
COMMON QUESTIONS
Operator-grade answers.
The questions that come up before the first call. Relevant outcomes are listed on the results page.
-
Do you value both software and services businesses?
Yes. We work across SaaS, tech-enabled services, implementation partners, managed services, and hybrid recurring-revenue businesses where revenue quality and delivery capacity both matter.
-
Can valuation work support sell-side preparation?
Yes. We use valuation findings to prioritize pre-LOI cleanup: financial reporting, IP assignment, customer concentration, contract hygiene, and technical debt remediation.
RELATED SERVICES