Software and SaaS Investment Banking & M&A

The Experts at Raincatcher are Here to Help

Many of Raincatcher’s Partners and Mergers and acquisitions (M&A) advisors come from backgrounds as middle market consultants, accountants, and investment bankers.

We aim to bring a middle market team and skillset down to the lower middle market to execute recapitalization and M&A, where it has historically been less available.

Raincatcher partners and M&A advisors come from successful careers as investment bankers, Big 4 accountants and consultants and as small business owners.

We provide investment banking services to assist founder and family-owned companies in maximizing their business value and capabilities. If you are looking to raise capital or sell your business, we welcome you to send us a message to get introduced.

What a Software and SaaS Investment Banking & M&A Can Do For Your Business

Lower middle-market software and SaaS companies make for great investments and are therefore sought after by private equity groups and other investors. When software and SaaS business owners do elect to sell, they should do so with a specialized investment bank offering mergers and acquisitions (M&A) services such as Raincatcher.

You’ll find that having both industry-specific expertise and relationships is crucial, in addition to having finance expertise and knowing how execute deals. Some of the intricacies of the software and SaaS sector are the reps and warranties that are specific to software deals in addition to the diligence they go-under from a buyer. Additionally, giving guidance on how to value these businesses is important, being as though many SaaS companies will trade on revenue multiples as opposed to EBITDA multiples.

Investment banks with software expertise play a central role in deal structuring and negotiations, guiding companies through complex processes with discretion and confidentiality. Leveraging broad buyer networks, including private equity firms and strategic acquirers, they increase the valuations of the companies through auction processes.

How an Investment Bank Orchestrates SaaS & Software Mergers & Acquisitions

We assist lower middle-market software and SaaS companies in navigating mergers and acquisitions (M&A) process. Our clients are software and SaaS companies that are typically still founder-led, they benefit from our industry-focused expertise, relationships, understanding of competitive landscapes, and software-specific industry challenges. We provide tailored advice and guidance throughout the M&A process.

Because SaaS and software typically have a high level of recurring revenue and a high level of gross margin, they make great investments. However, if your software is serving a large total addressable market, it can be difficult and costly to acquire customers. Because of this, many SaaS companies spend a tremendous amount of money on winning new business, but those customers are often retained for many years.

SaaS and Software companies who have proven product market fit, but are still investing heavily in marketing to fuel their growth will often-times trade on a revenue multiple. This is opposed to how most companies in the industry sell, which is on an adjusted EBITDA multiple.

The Raincatcher M&A Process at a Glance

SaaS & Software Mergers & Acquisitions Process and Service

How We Work With Our Software and SaaS Investment Banking & M&A Clients

Thesis Development

Our clients typically come to us with an array of desired outcomes in mind. Once we are able to get a better understanding of your company and what you’re looking to accomplish, we can give guidance on what you can expect from the market and help guide you on that process.

You don’t always have to sell the entire business. Have a look at our majority recap article to learn more about how you can roll equity and stay in the business.

Specially designed investment banking process

Whether we are working with clients on their buy-side or sell-side M&A, or an equity or debt recapitalization, there are similarities in our approach.

We believe that the through preparation of a data room and investor materials is crucial in achieving the desired outcome and in giving our clients the most offers to look through. 

This process, as well as the caliber of the team executing it is the primary difference between a business broker and an investment bank.

Short-listing prospective partners

Whether we are targetting private equity groups, banks or private money lenders or solely focused on strategic buyers, we tailor a prospect list to each client to make sure that we are getting the business in front of the proper group of debt and equity investors.

Gather bids, negotiate terms and facilitate diligence

Once IOI’s have been received from potential debt and equity investors, we work with our client to short-list the most capable firms and share more information with them ahead of their LOI.

Once they submit an LOI, we negotiate those deals extensively before one is signed and due diligence commences.

Next Steps for Your SaaS & Software Mergers & Acquisitions

Get introduced today and learn how SaaS brokers can help add value in your exit.

What Our M&A Clients Have to Say

Request A Consultation

If you’re a business owner and you are currently looking for growth capital, buying out a partner or investor, or taking on an investment partner; we welcome the opportunity to get introduced to discuss our specialized debt and equity recapitalization process and services.