Month: December 2022
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Presentation by Mark Leonard (President and founder Constellation Software)
Mark Leonard founded Constellation Software, a serial acquirer of niche software companies, in 1995. Today it has revenue of more than 4 billion Canadian dollars and thanks to high revenue growth, strong margins and predictable growth by acquisitions is valued very highly. Mark Leonard has kept a reasonably low profile, which makes his presentation at…
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Financial gravity is back
Jamin Ball writes Clouded Judgement, and is anything but, about SaaS and valuations and the last issue of 2022 included a wrap-up for the year. A chart of enterprise value divided with expected revenue for the next twelve month shows just how high valuations got in 2020 and 2021. Inflation and higher interest rates have…
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Have enough cash
Have enough cash on the balance sheet to either get to profitability or to get to a compelling set of milestones that makes raising additional financing a “no brainer” — even in a poor market environment. Roger Ehrenberg highlights one of the eternal truths, regardless of the market environment, for founders and CEOs building a…
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Sometimes widely adopted technology die slowly
Sometimes old technology die over a couple of years when new technology comes along, sometimes it takes a much longer time. If technology is embedded into core systems that works, even if not perfectly, there’s a bunch of reasons to “if it is not broken, don’t fix it”. Which is good for legacy sellers like…
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Interview with Brad Gerstner of Altimeter
Good discussion with Brad Gerstner about large tech companies (incl Meta), software stock valuations, interest rates etc. Nothing entirely new if you’ve been following what has been going on the last 6-9 months, but worth a listen/watch regardless.
Henrik Torstensson's Weblog 