Razorhorse

Valuation Insights

Razorhorse has discovered a wealth of insights that can help CEOs and entrepreneurs that are planning to bring their business to market for an exit or fundraise. We learned this after seeing hundreds of M&A transactions, and putting our observations into a robust structured data set.

Image of an American and EU flags.

While there has been an overall increase in private SaaS valuations, the gap between European and North American private valuations seems to have narrowed a bit...

Rule of 40

Fox vs Snail

With the impacts of COVID-19 rippling through financial markets, it looks like Foxes (strong growth and profit) do fare better in downturns than Snails. The median decline for our Snails...

Rule of 40

Tortoise vs. Hare

When we first published our Rule of 50 piece in 2017, we had a lot of people ask us if Growth and EBITDA Margin were equally valuable in the R-Score equation. “R-Score” is our shorthand for Rule of 50...

Valuation Multiples

I’m no Peyton Manning

Several years ago, we acquired a company for one of our clients. We had just finished a day of onsite due diligence to finalize our bid, and over dinner, one of the owners suggested the valuation in our IOI was...

Rule of 40

The Rule of 50

In software and SaaS, it’s well understood that growth is rewarded with high valuations, and high profile exits. However, too often, this results in a “growth at any cost” mentality. For the best software...