For bootstrapped founders, exit timing is everything. This article explores how shifts in the M&A market cycle — driven by interest rates and corporate confidence — directly influence valuations, deal volume, and buyer behavior.

Drawing on data from PitchBook and Grant Thornton, the piece breaks down the dynamics of seller’s and buyer’s markets, explaining why profitable, capital-efficient companies thrive across cycles if they prepare strategically.

It also outlines Peak Technology Partners’ framework for helping founder-led companies navigate these shifts: assessing valuation readiness, positioning strategically, and ensuring due diligence preparedness so deals close quickly before market windows tighten.

Whether the market is booming or contracting, your profitability story deserves to be told in the language acquirers value most — and the best time to prepare for that story is before the cycle turns.

In a striking market snapshot shared at a Bloomberg event, a KKR partner revealed that there are now roughly 19,000 private equity funds in the U.S.—outnumbering McDonald’s locations. The stat is more than trivia; it signals a structural imbalance reshaping outcomes for founder-led software companies.

This piece explores how demand (capital) has far outpaced supply (high-quality tech assets), fueling intense buyer competition that supports valuations even amid mixed macro signals. It breaks down the $2.5 trillion in global PE dry powder—including $1.2 trillion in buyout capital, with nearly a quarter sitting idle for over four years—and how that “aging capital” is amplifying pressure to deploy quickly and flexibly.

For founders weighing a raise, recap, or sale, the article outlines three key implications:

1. More credible bidders = more leverage.

2. Competition sustains valuations and improves terms.

3. Creative deal structures align investor fit with founder goals.

The takeaway: process quality—how you craft your story, target buyers, and manage sequencing—has never mattered more. In a market where not all capital is equal, a disciplined, competitive process converts abundance into advantage.

Peak Technology Partners works exclusively on the sell-side for founder-led software companies, helping transform today’s capital crowding into premium valuations, strong terms, and lasting partner alignment.

Bootstrapped founders seeking an exit often encounter the Expectation Gap, where their personal valuation clashes with a buyer's objective analysis.

This article highlights the key risks that lower valuation: treating years of dedication as an asset (The "Sweat Equity" Fallacy), and prioritizing high revenue numbers over retention and margins (The "Gross vs. Quality" Revenue Trap).

To successfully close a deal, founders must adopt a Private Equity mindset, focusing on building a GAAP-compliant infrastructure and tracking measurable KPIs. By de-risking the business and focusing on verifiable EBITDA, you can ensure the final offer meets your personal minimum

The sale of your company isn't the finish line—it's the start of the crucial integration phase. Success hinges on preparing your leadership team for the abrupt shift from startup autonomy to corporate governance.

This guide details three critical areas founders must address: merging distinct company cultures through proactive communication; mastering the acquirer's metrics and operational language to gain immediate credibility; and adapting to new decision-making matrices and processes to ensure accountability.

Read on to learn how to empower your leaders to preserve value and drive the strategic success of the acquisition.

Chasing fast growth can feel exciting, but the difference between building a lasting company and becoming a cautionary tale often comes down to what happens when the pressure hits. Customer churn, rising costs, and unexpected market shifts can quickly expose weaknesses if the foundation isn’t strong.

If your growth feels like it’s running on borrowed energy, take a step back. Revisit customer retention, review your sales structure, and make sure margins are healthy. The companies that win long term aren’t the ones that grow the fastest in the short term — they’re the ones that compound strength over time through credibility, loyal customers, and a product that continues to deliver value.

A company’s valuation isn’t set in stone—it’s shaped by how buyers perceive its potential. That means business owners have more influence than they realize. By widening your pool of qualified buyers, creating competition, tailoring your pitch to investor priorities, and telling a powerful business story, you can significantly elevate your company’s value. With the right strategy—and the right advisor—you’ll be positioned to secure the best possible outcome for your sale and your legacy.

Artificial intelligence has become more than a buzzword—it’s now a valuation catalyst for technology companies.

Investors are rewarding businesses that embed AI into their tech stacks with higher growth projections, stronger competitive moats, and valuation multiples often a “turn or two” higher than non-AI peers. Recent data shows AI-focused companies commanding 25×+ revenue multiples, compared to ~7× for traditional SaaS, and nearly half of all VC mega-deals in 2024 went to AI startups. Even incremental AI applications—like smarter customer support or workflow automation—can materially impact enterprise value.

The message is clear: revisiting your product roadmap through an AI lens is no longer optional. Companies that do so are positioning themselves for outsized returns, while those who don’t risk being priced as laggards.

In mergers, acquisitions, and capital raises, financials tell only part of the story. The real driver of deal success is psychology—how buyers perceive value and how sellers manage the emotions of the process.

This blog explores why valuation is shaped by perception, how experienced advisors help craft compelling narratives, and why balancing numbers with human dynamics is the key to achieving the best outcomes.

Donald Trump’s proposed “Liberation Day” agenda represents a sharp pivot toward economic nationalism—anchored by sweeping tariffs, stricter immigration controls, and regulatory shifts.

While positioned as a manufacturing-first policy, the implications for SaaS are immediate and material. From rising infrastructure and hardware costs to challenges in global talent sourcing, software companies will face a new layer of macroeconomic complexity.

SaaS founders should proactively evaluate supply chain exposure, pricing strategies, and geographic dependencies as they navigate a landscape increasingly shaped by deglobalization and policy-driven volatility.

Term sheets are non-binding agreements that outline the key terms of a potential investment or acquisition before final legal documents are drafted.

For software company founders, understanding the difference between an Indication of Interest (IOI) and a Letter of Intent (LOI) is critical, as is knowing which provisions are typically binding—like confidentiality and exclusivity.

Key areas covered include valuation methods, deal structures, funding sources, management roles post-transaction, and the due diligence process.

A strong grasp of these elements empowers founders to negotiate better terms and avoid costly pitfalls in M&A or fundraising scenarios.

When a SaaS founder considers an exit, they typically choose between two primary paths: a full sale to a strategic acquirer or a majority recapitalization with private equity.

Each option offers distinct advantages and trade-offs. A full sale provides maximum liquidity but relinquishes future upside, while a majority recap allows founders to cash out partially while staying involved in the company’s growth. Factors like risk tolerance, cultural fit, tax implications, and long-term goals play a crucial role in choosing the right strategy.

This guide breaks down the nuances of both options, helping SaaS founders navigate their M&A journey with confidence.

Customer retention is one of the most critical factors influencing SaaS company valuations, M&A attractiveness, and long-term success.

High retention rates signal strong customer loyalty, predictable revenue, and reduced acquisition risk—key elements that drive premium multiples in M&A transactions.

Metrics such as Gross Dollar Retention (GDR), Net Dollar Retention (NDR), and churn rate provide deep insights into a company's stability and scalability.

Founders who prioritize retention strategies, minimize churn, and maximize customer lifetime value position their companies for sustainable growth and lucrative exits. In the competitive SaaS landscape, retention isn’t just a growth metric—it’s a strategic advantage.

Raising capital is one of the most crucial decisions for software founders, requiring strategic evaluation of objectives, market conditions, valuation, and investor fit.

Founders must carefully assess whether to pursue venture capital, private equity, debt financing, or strategic investors based on their company’s stage and goals. Timing plays a key role, as market conditions influence valuation and investor interest.

Additionally, financial preparedness, governance considerations, and long-term exit implications must be thoroughly analyzed. While early-stage companies may raise funds independently, engaging an investment bank for later-stage or complex fundraising can optimize valuation, expand investor access, and streamline the process.

Ultimately, founders who approach capital raising with clarity, preparation, and the right partners will maximize their chances of success.

Selling a software company is a major milestone that requires careful planning and strategic decision-making. One of the most critical choices in an acquisition is whether to structure the deal as an asset sale or a stock sale—each with distinct implications for valuation, taxation, liabilities, and operational continuity.

Asset sales allow buyers to selectively acquire assets while avoiding certain liabilities, often making them the preferred structure for buyers. However, they present challenges for sellers, such as higher tax burdens, complex asset transfers, and potential disruptions to business operations. On the other hand, stock sales tend to be more favorable for sellers, as they provide tax advantages, simplify the transfer process, and ensure business continuity.

This article explores the pros and cons of both structures, helping software company founders navigate the financial, legal, and operational considerations of an acquisition. Understanding these key differences will enable sellers to make informed decisions and optimize their post-sale outcomes.

Quantum computing has long promised to transform industries, but practical challenges have kept it just out of reach. Microsoft’s Majorana chip could change that. By leveraging topological qubits, this breakthrough aims to overcome the instability and high error rates that have plagued quantum systems. If successful, it could pave the way for scalable, fault-tolerant quantum computing—ushering in a new era for business-to-business (B2B) software.

From revolutionizing data processing to reshaping cybersecurity, the ripple effects could be profound. As quantum technology inches closer to real-world applications, businesses must prepare for a future where quantum-powered solutions redefine how industries operate and compete.

Is your business ready for the quantum leap?

A Leveraged Buyout (LBO) is a financial transaction where a company is acquired using mostly borrowed funds, with the target company’s assets serving as collateral. Commonly used by private equity (PE) firms, LBOs maximize returns by minimizing upfront capital investment while using the company’s cash flows to repay debt.

Software companies make strong LBO targets due to recurring revenue models, high margins, and low capital expenditures (CapEx), ensuring stable cash flows for debt servicing.

For founders, LBOs offer equity retention and higher potential valuations, but come with risks like high debt burdens and reduced control. The right structure, guided by investment and legal advisors, is key to optimizing the deal.

Rollover equity allows a business owner to reinvest part of their sale proceeds into the acquiring company rather than cashing out completely. This aligns their interests with the new owners, creates potential for future gains, and offers tax deferral benefits. However, it also comes with risks, such as reduced liquidity and loss of control. For acquirers, rollover equity helps retain founders and lower upfront cash needs, though it can complicate deal structures. Successful outcomes depend on proper negotiation and tax planning.

As inflation continues to rise, software companies are facing unexpected challenges—from increasing operational costs to shifting customer spending habits. While inflation is often associated with physical goods, its impact on the tech industry can be just as profound. How can software entrepreneurs navigate these economic pressures, maintain financial stability, and continue to grow? This article explores key risks, strategic adjustments, and actionable steps to help your business stay resilient.

In the SaaS industry, revenue predictability is a key factor in determining a company's valuation. Traditional software models relied on one-time license fees and additional services—leading to unpredictable revenue streams. The shift to cloud-based, subscription models has introduced more consistent, recurring revenue—which investors highly value. This article delves into the types of revenue: recurring, reoccurring transactional, and non-reoccurring transactional and their impact on a company's market worth. Understanding these distinctions is crucial for SaaS businesses aiming to enhance their valuation and attract investment.

The Department of Government Efficiency (DOGE), led by Elon Musk, is transforming the landscape for government software companies. With a focus on modernization, cost-effectiveness, and automation, DOGE is creating demand for innovative solutions. While software firms will face increased competition, they’ll also see new opportunities to secure contracts, especially those specializing in cybersecurity and AI. However, the initiative raises legal complexities and ethical questions that companies must navigate. Additionally, small businesses may benefit from the increased opportunities for government contracting.