L40º Tech M&A

In a market where AI has made it possible to build tools faster (and arguably more efficiently and profitably from day one), many traditional buyers are reconsidering the build vs. buy debate. And leaning toward building. Not buying. This market trend may be defining the dichotomy between strategic and financial buyers. And it's giving rise to a third type of buyer that is standing out as particularly competitive today: strategics backed by Private Equity. Hear Ignacio Villanueva Martin take on this. For more videos like this, follow us on YouTube. Link in comments.

A small recap of the breakfast we hosted yesterday morning, nested in Polsinelli's waterfront offices in Miami. Together with SVB and Angeles Investors, we invited a curated group of tech founders to discuss the capital choices scaling tech companies face today: raise or sell, and how to actually think through that decision in the current market. Nicolas Toro moderated a conversation between Francisco Mariscal and Andrea Balletbo, with contributions from Ana Cristina Gadala-Maria from QED Investors and every founder in the room who is going through one of these decisions. Our pick of 3 discussion points worth sharing: 1. PE-backed companies are interesting acquirers in mid-market tech right now. They are building platforms through add-ons and running competitive processes, potentially even becoming an alternative to raising capital (think in terms of growth PE capital, for instance, and double exit down the road). 2. In terms of valuations, where multiples land today depends on NRR, margin profile, and especially how defensible your business looks against AI disruption. 3. Deal activity is strong, but not all tech companies are being valued the same. Buyers and investors are more thorough than ever in how they find and evaluate the assets they want. The narrative you build to defend your moat matters. Thank you to everyone who joined. More events like this are coming up in Miami, Madrid, and New York in the next couple of months. Follow our LinkedIn page to be in the know

Madrid founders, save the date: May 7. Join Juan de Antonio (Founder and CEO at @Cabify) and Juan Ignacio García Braschi(Managing Director at @L40° and founder of the exited @Boopos) for a private dinner conversation. The table will be set for 15 founders and CEOs of tech companies with €3M to €100M in revenue. On the agenda: what it really takes to build a unicorn, the challenges in today’s capital markets, how AI is impacting valuations, and strategic exits and M&A opportunities. Plus great food, a curated wine selection, and even better company. Supported by Endeavor Spain. Apply for your invite: https://luma.com/buim3ydn

What's hot and what's not in today's SaaS M&A market? Juan Ignacio García Braschi, MD and Partner at L40º Tech M&A, breaks down how AI disruption is reshaping valuations. In brief, public SaaS multiples are contracting across the board. And private markets typically lag by about six months, so the correction is coming. However, the bigger story is vertical divergence. Fintech, cybersecurity, infrastructure, and defense tech are seeing AI as a tailwind. HR tech and marketing tech face growing pressure from AI-native competitors entering the space. For mid-market SaaS founders evaluating an exit in the next 12 to 24 months, understanding where your vertical sits is critical to timing and valuation. Talk to our M&A advisory team: https://lnkd.in/e6iXWHVq

Coming up next week!  On Tuesday, we’re hosting an invite-only breakfast for scaling tech founders, together with Angeles Investors and SVB in Downtown-Brickell Miami. The discussion will be focused on the capital choices scaling tech companies face in today’s market. Final seats remaining. Secure yours here: https://luma.com/azs3wiz0

It is not unusual for SaaS founders to think about capital strategy as a binary decision: to raise or to bootstrap. To be or not to be. But there is so much more. Think of it this way. The real question should be around which type of capital, at what moment, and how it can shape your outcome. Equity, structured debt, revenue-based financing, strategic M&A. Each option changes your ownership, your metrics, and your timing to maximize valuation. Together with Novel Capital, we're hosting a live session featuring Keith Harrington and Andrea Balletbo to break this down for mid-market B2B SaaS founders. If you're a B2B SaaS founder thinking about growth capital, optimizing your cap table (debt can also be a non-dilutive option!), or exploring strategic M&A options, this webinar is for you. Register here: https://luma.com/zu7sytra

M&A advisor or investment bank? Who do you trust if you're a tech founder selling your business in the mid-market? Andrea Balletbo breaks it down in 60 seconds. Large banks are built for billion-dollar transactions. For mid-market tech founders in the $20M to $500M valuation range, what matters most is sector expertise, senior involvement, and someone who knows how to defend your metrics under diligence. Reach out to our team if you're evaluating your options. + Find more advisory tips for tech founders on our YouTube channel. Link in comments.

A bootstrapped SaaS founder who owns 90% of their business at a 4.8x ARR multiple takes home significantly more than a VC-backed founder who owns 30% at 5.3x. Have you ever thought of this? This is one of the most underappreciated dynamics in SaaS M&A. The headline multiple gap between bootstrapped and equity-backed private SaaS reflects illiquidity and scale, not business quality. And because bootstrapped founders retain far greater ownership, the economics at exit frequently favor them. We published our full framework for how bootstrapped SaaS founders should approach a sell-side process in 2026. Link in comments.

Market headwinds across public SaaS valuations have been making headlines this year, especially since Anthropic’s release of Claude Cowork and Opus 4.6. And the question on everyone's mind is whether this signals a structural shift or a momentary overreaction. We asked our partners at L40º Tech M&A for their view. Hear Ignacio Villanueva Martin's take. + more perspectives coming to our YouTube channel. Link in comments.