Team M&A Firm
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Michael Gravel
Michael is the founder and managing partner of iMerge Advisors and brings nearly 30 years of senior-level executive operations, fundraising, private equity, venture capital, M&A, and investment banking experience within the technology sector. also Team M&A Firm Prior to the founding of iMerge, Michael spent ten years in senior executive positions for financial software technology firms such as Bankers Systems (Acquired by Wolters Kluwer) Sungard International, PCi Corporation (Acquired by Wolters Kluwer), Logica (Acquired by CGI). In addition, as an executive with these companies, he managed and integrated several acquisitions.
At iMerge, Michael’s extensive experience and exceptional skill set have made him an invaluable asset. Over the past 25 years, he has successfully executed more than 125 transactions in the small to mid-size software and technology sector, totaling over $1 billion in value. Michael’s expertise, combined with his dedication to his clients, has cemented his position as a trusted advisor in the industry.
Beyond his professional life, Michael is actively engaged in several charitable organizations, demonstrating his commitment to making a positive impact on society. Notably, he is involved in the Big Brother/Big Sister program, where he has touched the lives of countless individuals. His efforts have been recognized by the organization, which awarded him their highest honor, Big Brother of the Year. Through his work at iMerge and his community involvement, Michael continues to demonstrate his passion for helping others and contributing to a better world.
Michael holds a BA in Psychology and Finance from the University of Massachusetts, Amherst.
Todd Lorbach
At iMerge Advisors, Todd Lorbach serves as a managing director, bringing with him a wealth of transaction expertise gained from his 25 years of experience in software, private equity, negotiation, and international strategies. Before joining iMerge, Todd spent eight years as the senior international sales and operations executive for Datastream Systems, an EAM software firm. In this role, he established offices in London, Sydney, and Monterrey, and formed strategic partnerships with 18 international distributors.
Todd’s global experience also includes living in London, Rotterdam, Munich, and Singapore for five years as Datastream acquired four international competitors and an Australian distributor using funds from an initial public offering (Nasdaq: DSTM; acquired by Infor) and a secondary offering.
His accomplishments extend to providing funding for seven start-up ventures and advising an investment fund from concept creation through the acquisition of five entities. Todd has also executed 18 sell-side transactions for a Morgan Stanley portfolio. At iMerge, Todd has successfully completed dozens more transactions. In addition to these achievements, he funded a research organization that developed award-winning wellness programs for underprivileged seniors.
Todd holds a BA in Finance & Accounting from Clemson University, showcasing his strong foundation in the financial sector. With his extensive experience and dedication to making a positive impact, Todd is a valuable member of the iMerge Advisors team.
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M&A Advisory services
Professionalism & Integrity
Professionalism and integrity are simple baselines that are expected by clients throughout the mergers & acquisitions industry. We aim to vastly exceed those expectations.
Our m&a advisory services are based solely on what is best for you as our client and not what would benefit the firm’s bottom line.
In addition, we understand our client’s personal objectives and needs while guiding them through this intensive and sometimes emotional process.
Dealmaker Insights
The Ultimate Guide to SaaS Company Valuation in 2025: Multiples, Formulas, and Insights
The Ultimate Guide to SaaS Company Valuation in 2025: Multiples, Formulas, and Insights In the rapidly evolving landscape of software as a service (SaaS), understanding how to value a SaaS company is more critical than ever. Whether you're a founder preparing for an...
Sell software business
Summary of:
How to Sell a Software Business: Strategic Insights for Founders and CEOs
For many software founders, selling the business is the most consequential financial decision of their careers. Whether you’re running a bootstrapped SaaS company or a venture-backed platform, the path to a successful exit is rarely linear. Timing, positioning, and preparation all play critical roles — and missteps can cost millions.
This article outlines the key considerations for selling a software business, from valuation drivers to buyer types, and how to navigate the M&A process with confidence. It’s written for founders, CEOs, and investors who want to maximize value and minimize surprises.
1. Understand What Drives Valuation in Software M&A
Software companies are typically valued using revenue or EBITDA multiples, depending on their growth profile and profitability. For recurring revenue businesses like SaaS, SaaS valuation multiples are often based on ARR (Annual Recurring Revenue), with high-growth companies commanding 5x–10x ARR or more. For mature, profitable software firms, EBITDA multiples in the 6x–12x range are common, though this varies by sector and buyer appetite.
Key valuation drivers include:
- Revenue quality: Recurring vs. one-time, customer concentration, churn rates
- Growth rate: Sustained double-digit growth is highly attractive
- Profitability: EBITDA margins above 20% are a strong signal of operational efficiency
- Market position: Niche dominance or defensible IP can boost strategic value
- Retention metrics: Net revenue retention (NRR) above 100% is a green flag
As we noted in What Are the Key Financial Metrics Buyers Look For in a Software Company, buyers increasingly scrutinize cohort data, CAC payback periods, and Rule of 40 compliance to assess scalability and capital efficiency.
2. Know Your Buyer Types — and What They Want
Not all buyers are created equal. Understanding the motivations of different acquirers can help you tailor your positioning and negotiation strategy.
- Strategic buyers (e.g., Adobe, Salesforce) seek product synergies, market expansion, or talent. They may pay a premium for strategic fit but often require longer diligence and integration planning.
- Private equity firms look for stable, cash-generating businesses they can grow through operational improvements or roll-ups. They often prefer majority control and may ask founders to stay on post-close.
- Growth equity investors may offer partial liquidity while funding future expansion. This is ideal for founders not ready for a full exit.
Each buyer type has different expectations around deal structure, earn-outs, and founder involvement. A firm like iMerge can help you assess buyer fit and navigate trade-offs between valuation and terms.
3. Prepare Early — and Thoroughly
One of the most common mistakes founders make is waiting too long to prepare for a sale. Ideally, exit planning should begin 12–24 months before going to market. This allows time to clean up financials, address legal risks, and optimize KPIs that drive valuation.
Key preparation steps include:
- Assembling GAAP-compliant financials or audited statements
- Reviewing customer contracts for assignment clauses
- Securing IP ownership and resolving any contractor IP gaps
- Preparing a due diligence checklist and data room
- Creating a compelling Confidential Information Memorandum (CIM)
As we discussed in Completing Due Diligence Before the LOI, proactive diligence preparation can accelerate deal timelines and reduce the risk of retrading or deal fatigue.
4. Structure the Deal to Align Incentives
Deal structure can be just as important as headline valuation. Common components include:
- Cash at close: The portion paid upfront, often 70–90% of total value
- Earn-outs: Contingent payments based on future performance
- Equity rollover: Retaining a stake in the business post-acquisition
- Escrow holdbacks: Funds set aside to cover indemnities or post-close adjustments
Earn-outs can bridge valuation gaps but introduce risk. As we explain in How Do I Handle Earn-Outs in the Sale of My Software Business, it’s critical to define clear metrics, timelines, and dispute resolution mechanisms.
5. Choose the Right M&A Advisor
Founders often underestimate the complexity of selling a software business. A seasoned M&A advisor can add significant value by:
- Positioning your company to maximize strategic value
- Running a competitive process to attract multiple offers
- Negotiating deal terms and protecting your interests
- Managing diligence and keeping the process on track
Firms like iMerge specialize in software and technology transactions, offering tailored guidance on valuation, buyer targeting, and deal execution. In a market where EBITDA multiples continue to trend lower for some segments, having the right advisor can be the difference between a good exit and a great one.
6. Timing Is Strategic — Not Just Tactical
Market conditions, buyer appetite, and your company’s growth trajectory all influence timing. Selling too early may leave value on the table; waiting too long could expose you to market downturns or competitive threats.
Ask yourself:
- Is our growth rate accelerating or decelerating?
- Are we approaching a capital-intensive inflection point?
- Are strategic buyers actively acquiring in our space?
As we explore in How Do I Determine the Right Time to Sell My Software Company, the best time to sell is often when you don’t have to — when growth is strong, metrics are clean, and multiple paths forward exist.
Conclusion
Selling a software business is a high-stakes, high-reward endeavor. It requires more than just a great product — it demands strategic preparation, thoughtful positioning, and expert execution. Whether you’re exploring a full exit or partial liquidity, the right approach can unlock transformative value for you and your stakeholders.
Founders navigating valuation or deal structuring decisions can benefit from iMerge’s experience in software and tech exits — reach out for guidance tailored to your situation.
How to sell a software company
Summary of:
How to Sell a Software Company: A Strategic Guide for Founders and CEOs
For many software founders, selling their company is the most consequential financial and strategic decision they’ll ever make. Whether you’ve built a SaaS platform with recurring revenue or a niche enterprise solution with deep customer relationships, the path to a successful exit is rarely linear. It requires more than just a great product — it demands preparation, positioning, and precision.
This guide outlines the key steps, strategic considerations, and common pitfalls in selling a software company, drawing on insights from real-world transactions and the experience of M&A advisors like iMerge, who specialize in software and technology deals.
1. Know When You’re Ready — and Why You’re Selling
Timing is everything in M&A. But readiness isn’t just about market conditions — it’s about internal alignment. Ask yourself:
- Is the business growing, stable, or plateauing?
- Are you personally ready to exit or transition leadership?
- Do you have a clear rationale — strategic, financial, or personal — for selling?
Buyers can sense when a founder is unsure. Clarity of purpose not only strengthens your negotiating position but also helps you identify the right type of buyer — whether that’s a strategic acquirer, private equity firm, or growth investor.
For more on timing, see How do I determine the right time to sell my software company?
2. Understand What Buyers Value
Software companies are typically valued on a multiple of revenue or EBITDA, depending on the business model. But valuation is only part of the equation. Buyers are looking for:
- Recurring revenue (ARR/MRR) with low churn
- Scalable infrastructure and clean codebase
- Customer concentration risk mitigation
- Strong unit economics and gross margins
- Defensible IP and clear ownership of code
In SaaS, metrics like net revenue retention, CAC payback, and the Rule of 40 are increasingly scrutinized. If you’re unsure how your metrics stack up, consider benchmarking them against industry standards. Our article on SaaS Key Performance Metrics and Valuation Multiples offers a detailed breakdown.
3. Prepare for Due Diligence — Before You Go to Market
One of the most common deal-killers in software M&A is a messy diligence process. Founders often underestimate how much scrutiny buyers will apply to financials, contracts, IP, and compliance. To avoid surprises:
- Ensure financials are GAAP-compliant and ideally reviewed or audited
- Clean up your cap table and resolve any outstanding equity issues
- Verify that all IP is properly assigned — especially from contractors
- Organize customer contracts, renewals, and consent clauses
- Document data privacy policies (e.g., GDPR, SOC 2, CCPA)
As we noted in Completing Due Diligence Before the LOI, preemptive diligence can significantly reduce deal friction and increase buyer confidence.
4. Decide on Deal Structure: Asset vs. Stock Sale
Software companies can be sold as either asset sales or stock sales. Each has implications for taxes, liability, and complexity:
- Asset Sale: Buyer acquires specific assets and liabilities. Often preferred by buyers for tax and risk reasons.
- Stock Sale: Buyer acquires the entire legal entity. Simpler for sellers, but may require more buyer diligence.
Tax treatment can vary significantly between the two. For a deeper dive, see Asset versus Stock Sale.
5. Build a Compelling Narrative and Go to Market
Buyers don’t just buy numbers — they buy stories. A well-crafted Confidential Information Memorandum (CIM) should articulate:
- Your company’s mission and market position
- Growth trajectory and future opportunities
- Competitive advantages and barriers to entry
- Key team members and their roles
Firms like iMerge help founders position their company to the right buyer pool, whether that’s strategic acquirers, financial sponsors, or international buyers. The right positioning can increase competitive tension — and ultimately, valuation.
6. Negotiate the LOI Thoughtfully
The Letter of Intent (LOI) sets the tone for the rest of the deal. While non-binding in most respects, it often includes binding clauses around exclusivity and confidentiality. Key terms to negotiate include:
- Purchase price and structure (cash, stock, earn-out)
- Working capital adjustments
- Escrow amounts and indemnification caps
- Founder retention or non-compete terms
Don’t rush this stage. A well-negotiated LOI can prevent costly renegotiations later. For more, see What clauses should I watch out for in a Letter of Intent?
7. Close the Deal — and Plan for Life After
Once diligence is complete and definitive agreements are signed, the deal moves to closing. But even here, surprises can arise — from last-minute purchase price adjustments to escrow holdbacks. Be prepared for:
- Finalizing legal documents and schedules
- Coordinating with tax and legal advisors
- Communicating with employees and customers
- Transition planning if you’re staying on post-sale
And don’t forget the personal side. Selling a company can be emotionally complex. Founders often underestimate the psychological shift that comes with letting go. Having a trusted advisor can help you navigate both the financial and human dimensions of the exit.
Conclusion
Selling a software company is not just a transaction — it’s a transformation. The best outcomes are achieved when founders prepare early, understand what buyers value, and work with experienced advisors who can guide them through the nuances of valuation, deal structuring, and negotiation.
Founders navigating valuation or deal structuring decisions can benefit from iMerge’s experience in software and tech exits — reach out for guidance tailored to your situation.