SaaS M&A is harder than you think

We spoke to an investment banker yesterday about his view of the SaaS market. Some of the learnings he shared where surprising, and a departure from what most bankers and investors will tell you. Because the conversation was so candid and not a glowing view of SaaS, he’ll remain anonymous for purposes of this article, but we believe his views should definitely be taken seriously.

Strategics want size. For strategic acquirers to take you seriously and pay a strategic multiple, you need to have annual recurring revenue of at least $20mm per year, and for some like…