Software Equity Group

Just like the World Series, building a winning business takes more than talent—it takes strategy, focus, and the right team behind you. At SEG, we help software leaders navigate M&A, market expansions, and capital raises with the same precision and determination it takes to win it all. Here’s how we do it: ▪️We Prioritize Confidentiality & Integrity – Your business stays protected. Every deal is handled with care and discretion. ▪️We Favor Honesty & Transparency – No curveballs here. We believe in open conversations, straight talk, and building trust through honesty. ▪️We Focus on Providing Value – We’re committed to helping you make informed decisions and achieve long-term success—not just the next big play. ▪️We Foster a Collaborative Spirit – Great wins are a team effort. We pull from every corner of our team’s experience to deliver the best results. ▪️We Obsess Over Results – Your goals are our goals, and we don’t stop until we get you there. We work with software founders to determine if now is the right time to make your next big move—whether it’s M&A, market expansion, or raising growth capital. We know strategy wins championships, so ask yourself, is your business ready to compete? A conversation with us can provide clarity on where your business stands and how to position it for future success. Confidentially reach out to us here: https://lnkd.in/gFm3MPTh #saas #software #mna #worldseries

Excellent info from our "in-house" expert, Paul Lachance. Read more about the fascinating path of modern SaaS EAM/CMMS below.

"As desirable as growth is, it is important to remember that not all growth is equal. While rapid customer acquisition can boost top-line numbers, new customer acquisition can be costly and unpredictable and possibly mask underlying retention issues. Growth driven by expanding revenue from existing customers, on the other hand, is often more valuable, as a high NRR indicates product stickiness, customer satisfaction, and efficient scaling. The difference pays off in higher valuations: Companies that can retain and grow within their customer bases, particularly in the face of a recession, are rewarded with higher multiples. Understanding and optimizing NRR has become crucial for software companies looking to drive sustainable growth and attract buyer and investor interest. In this article, we will explore NRR in depth, examining its role in public software companies and sharing takeaways for leaders and executives..." 🔵 READ MORE: https://lnkd.in/eN_umbKY

We’re a team of baseball fans here at SEG! A lot of us cheered hard for the Padres through their 2024 season. But with team members working remotely across the country, we’ve got people rooting for other teams, too. Scroll through to see the fun!

Are You Familiar with the Key Players in Your Industry? Whether it’s direct competitors or emerging companies in adjacent spaces, overlooking key players can hinder strategic initiatives. A comprehensive understanding of your industry landscape is essential for informed decisions on market entry, product development, and partnership opportunities. To assist with this process, our vertical-specific market maps offer a clear, visual overview of your industry’s structure. These maps highlight key relationships and market dynamics, equipping you with actionable insights to enhance strategic planning, communication, and decision-making. (Scroll through for a few examples across various sectors.) Explore our current Market Maps, including Energy, Education, Manufacturing, and Government, with more sectors on the way. https://lnkd.in/ePpWFHPW If you wish to add your company to our Market Maps, please reach out to our team here: https://lnkd.in/gFm3MPTh

What makes an A+ business in the eyes of buyers and investors? If you’re aiming to attract buyers and investors, building an A+ business starts with mastering key elements that demonstrate sustainability, scalability, and financial performance. Here are the essential factors to help your company stand out and maximize its valuation: 🟢 Sustainability & Scalability Showcase your company’s ability to sustain growth over time. Highlight your track record of scaling efficiently and demonstrate why you can continue hitting key milestones. 💰 Strong Financial Performance Investors seek companies with consistent revenue and ARR growth, healthy profit margins, and capital-efficient operations. Ensure you have a clear path to profitability or breakeven, along with structured financial forecasts to instill confidence. 🏆 Competitive Advantage What makes your business different? Whether it’s a differentiated product, strong brand recognition, or a loyal customer base, emphasize your unique advantage to stand out from competitors. 🌐 Scalability and Market Size Investors are drawn to scalable models with expansive market potential. Articulate your market opportunity clearly and explain how you plan to capture it efficiently. Ready to position your business for success? Take advantage of our non-obligatory strategic assessment to align your goals and maximize your valuation. Visit: https://lnkd.in/gEbCMuxn #BusinessGrowth #Valuation #MergersAndAcquisitions

Perfecting your pricing strategy starts with asking the right questions—and Steven Forth, CEO & Co-Founder of Ibbaka, a leader in value-based pricing, segmentation, and innovation strategies, has the answers. In our recent webinar, Steven tackled 12 of the most pressing questions from software executives to help them refine their approach, maximize growth, and drive sustainable success. 📊 Why Does a Strong Pricing Strategy Matter? 1. Maximize ARR and Valuation – Capture the full value your product delivers. 2. Retain Customers and Manage Churn – Align pricing with customer expectations and product value. 3. Drive Growth with Product-Led Strategies – Encourage adoption, usage, and upsell opportunities. Here’s a sneak peek at the 12 key questions Steven answered to help software companies refine their pricing models: ❓ How do you transition to value-based pricing without discouraging usage? ❓ What’s the difference between value-based pricing and willingness to pay? ❓ How does pricing impact churn and retention strategies? ❓ How can I predict churn before a price change? ❓ How should I segment my market for optimal product-market fit? ❓ What role does pricing play in Net Revenue Retention (NRR)? ❓ What’s the best way to monetize mobile apps as part of a SaaS platform? ❓ How do I price feature add-ons within a Product-Led Growth (PLG) strategy? ❓ Should pricing be tied to contracts or usage agreements? ❓ How do I calculate the impact of value-based pricing on long-term LTV? ❓ How should I handle pricing changes to manage upsell and downsell? ❓ Is there a ceiling for feature-based pricing in PLG models? Click through to explore the full Q&A. Or watch the webinar for more actionable guidance: https://lnkd.in/gTT-Y6fX #SaaSPricing #ValueBasedPricing #SoftwareExecutives #GrowthStrategy #PLG #SEG #Ibbaka

Is the growth-at-all-cost mindset leading your company astray? While chasing revenue is essential, neglecting efficiency and profitability can prevent you from achieving 𝗽𝗿𝗲𝗺𝗶𝘂𝗺 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻𝘀. Companies prioritizing 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 and 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 while maintaining market-leading growth are highly desirable and rewarded with valuations 𝗲𝘅𝗰𝗲𝗲𝗱𝗶𝗻𝗴 the SEG SaaS Index's median. This is evident when examining revenue multiples by growth cohorts, as illustrated in the chart below. The same theme emerges when analyzing revenue multiples by Rule of 40 cohorts. To achieve a balance between growth, efficiency, and profitability, focus on your business's fundamentals. We’ve outlined 𝟮𝟬 𝗾𝘂𝗮𝗻𝘁𝗶𝘁𝗮𝘁𝗶𝘃𝗲 𝗮𝗻𝗱 𝗾𝘂𝗮𝗹𝗶𝘁𝗮𝘁𝗶𝘃𝗲 𝗳𝗮𝗰𝘁𝗼𝗿𝘀 that influence your valuation. Download our whitepaper, "𝟮𝟬 𝗙𝗮𝗰𝘁𝗼𝗿𝘀 𝘁𝗼 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗪𝗵𝗲𝗻 𝗩𝗮𝗹𝘂𝗶𝗻𝗴 𝗬𝗼𝘂𝗿 𝗦𝗮𝗮𝗦 𝗖𝗼𝗺𝗽𝗮𝗻𝘆," for insights on mastering this delicate balance. https://lnkd.in/gqiE9Fgg #SaaSGrowth #Profitability #Efficiency #Valuation

Reducing maintenance costs by a 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝟱𝟬𝟬% is possible with the implementation of early problem detection tools like CMMS and APM. Implementing tools like these helps founders identify issues early on the PF curve, making operational efficiency more attainable than ever. For manufacturing software founders in looking gain deeper insights into industry trends and opportunities like this, SEG provides a suite of tailored resources. These tools are designed to help founders stay ahead of market shifts, optimize operations, and identify strategic growth opportunities. 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝗦𝗘𝗚’𝘀 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀 𝗯𝗲𝗹𝗼𝘄. • 𝗦𝘁𝗮𝘁𝗲 𝗼𝗳 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 & 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗥𝗲𝗽𝗼𝗿𝘁: https://lnkd.in/gFN5w9AP • 𝗕𝗹𝗼𝗴𝘀: Ex. How the Digital Transformation Drives M&A Activity in Manufacturing: https://lnkd.in/d-RT-BCg • 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 & 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗮𝗽: https://lnkd.in/gN9EHDAZ • 𝗩𝗶𝗱𝗲𝗼: The Pulse of Industrial & Manufacturing Software: https://lnkd.in/gbZ3YC62 • 𝗠&𝗔 𝗗𝗲𝗮𝗹 𝗗𝗮𝘁𝗮𝗯𝗮𝘀𝗲: Filter by Manufacturing: https://lnkd.in/gScGNDMC #Manufacturing #SaaSInnovation #ManufacturingInsights

What if the key to increasing your company's valuation was hiding in plain sight? While many focus on flashy growth metrics, it's sometimes the unsung hero—𝗖𝗼𝘀𝘁 𝗼𝗳 𝗚𝗼𝗼𝗱𝘀 𝗦𝗼𝗹𝗱 (𝗖𝗢𝗚𝗦)—that can provide insights into boosting your valuation and attract investors. Private Equity investors and Strategic Buyers heavily scrutinize COGS when evaluating potential acquisitions. As software founders, understanding the intricacies of COGS allow you to enhance the overall value of you company. 𝗥𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘁𝗲𝘀𝘁 𝗯𝗹𝗼𝗴 𝗼𝗻 𝗖𝗢𝗚𝗦 𝗵𝗲𝗿𝗲: https://lnkd.in/gxaN9MWj #COGS #SaaS #SoftwareValuation