SaaS businesses are selling for “Titanic multiples,” says Crutchfield’s J.B. Dollison

Tech-enabled service businesses, including those that use the Software-as-a-Service, approach provide “a very sticky customer base,” says Crutchfield Capital’s J.B. Dollison, who serves as chair of the ACG Global board, in this video shot at ACG InterGrowth 2018. “Those fundamentals are very attractive in the market, and some of those businesses are selling for Titanic multiples.”

If a business has weathered the storm through the Great Recession and is now doing well.

There could probably not be no better time to sell so valuations are really on the upswing and I think that any private Equity Group that is out trying to buy Acquisitions is lamenting about the high valuation metrics.

It's a function of the amount of liquidity in the market the availability of Leverage.

So those two factors have really driven valuations up to in some cases stratospheric levels things like Tech enabled service businesses software as a service where they're highly scalable.

So once you've got your your recurring Revenue base, it never goes away very sticky customer base.

Those fundamentals are very attractive in the market and some of those businesses are selling for Titanic multiples.

There's a lot of activity with some basic Industries manufacturing distribution.

Healthcare is still very big areas.

That might not be as robust might be in the area of Finance where there's a lot of consolidation that's already occurred.

There's a lot of regulatory pressure.

So those areas are probably a little bit less attractive to buyers.

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