Technology M&A
Senior led M&A advice for software, SaaS, IT services, managed services, digital platforms and technology enabled businesses.
Growth is only part of the story
Technology companies can produce exceptional growth and margins, but value depends on the quality and durability of that growth.
Buyers examine recurring revenue, gross and net retention, customer concentration, gross margin, product differentiation, intellectual property, cybersecurity, technical debt and the ability to scale. A company with strong growth but high churn or founder dependent product leadership can have very different value from a platform with durable cohorts and an independent team.
Northeastern Advisors helps acquirers evaluate these factors before committing capital and helps owners address them before going to market. Our work connects strategic positioning, operating metrics, financial analysis, confidential outreach and transaction execution.
Advisory services
We help strategic buyers, private equity investors, family offices and founder led acquirers pursue platform investments and add on acquisitions.
We help owners understand value, prepare operating and product metrics for buyer scrutiny and reach the counterparties most likely to appreciate the company’s strategic strengths.
Sector knowledge
Buyers pay for durable recurring revenue, strong retention, scalable products and a business model that can grow efficiently beyond its current leadership.
A strong process demonstrates why customers will renew, how the product can scale and where growth can come from expansion, new markets, product development or additional acquisitions.
ARR and MRR quality, contract duration, renewal patterns, implementation revenue and the predictability of future cash flow.
Gross retention, net revenue retention, churn, expansion revenue and performance by customer cohort.
Customer acquisition cost, lifetime value, payback period, sales efficiency and the relationship between growth and cash investment.
Intellectual property, architecture, product roadmap, scalability, cybersecurity and the level of technical debt.
Customer concentration, competitive differentiation, addressable market, pricing power and category position.
Leadership depth, founder dependence, engineering and product talent, sales ownership and readiness for the next phase of growth.
A disciplined transaction process
Define acquisition criteria or owner goals, including product fit, market priorities, timing, liquidity and leadership plans.
Normalize ARR and earnings, then analyze retention, cohorts, customers, margins, pipeline, cash needs and growth efficiency.
Identify the strategic buyers, investors or acquisition targets with the strongest fit.
Explain product differentiation, revenue durability, scalable growth and the path beyond the current founder.
Compare offers, structure rollover and retention terms, and coordinate financial, technical, legal and cybersecurity diligence.
Align customer communication, team retention, product continuity and integration planning.
Research and market intelligence
How buyers assess recurring revenue, growth, retention, margins, concentration, scalability and management depth.
Explore resource →A practical view of the operating metrics that support or limit technology company valuation.
Explore resource →Why retention, concentration, technical risk and earnings quality influence price and structure.
Explore resource →A practical guide to the financial, legal and operating review that follows an accepted offer.
Explore resource →A targeted program for identifying and approaching software, IT services and technology enabled businesses.
Explore resource →Senior led preparation, positioning, buyer outreach, negotiation and transaction management.
Explore resource →Frequently asked questions
The practice can include SaaS, vertical software, IT and managed services, cybersecurity, data and analytics, fintech enablement, digital platforms and technology enabled services. The target universe and valuation approach are tailored to the specific business model.
Valuation may use ARR, revenue, EBITDA or adjusted EBITDA depending on maturity. The multiple depends on growth, retention, gross margin, customer concentration, scalability, intellectual property, management depth and cash efficiency.
Predictable renewals, low churn, strong net revenue retention, diverse customers, clear contracts and consistent cohort performance make recurring revenue more durable and valuable.
Technical diligence should address product architecture, code quality, scalability, cybersecurity, data practices, intellectual property ownership, third party dependencies, technical debt and the product roadmap.
Preparation should include consistent KPI reporting, clean customer and vendor contracts, documented intellectual property ownership, cybersecurity readiness, a credible product roadmap and a management team that can operate beyond the founder.
A confidential conversation
We can help you define an acquisition mandate, evaluate a technology company’s durable value or prepare a business for a confidential sale process.
Schedule a Consultation →