David Hauser

Yeah, so the question was, how do you value a company?

Is it EBITDA?

Is it sales, ARR?

For us, we're a very specific type of buyer.

We're much more value-based than strategic because we're putting a lot of things together.

So we're looking at EBITDA multiples.

So I think the more important question is,

What are the categories of buyers, right?

And we sit in one category.

Each of them think about valuations differently.

The most valuable strategic, but there are other people that are different than us that will pay higher multiples on ARR, for example, compared to EBITDA.

100% it matters.

I think it's less about the percentage proportion, but you will definitely get nowhere close to the value on the services, right?

And we went through this at Vanilla.

When we were talking to VCs, they're like, listen, like 40% of the business is services, not SaaS.

we value it at zero in the fundraising process.

The acquisition process, it's probably not zero, but I could imagine it's pretty close to zero.

Profit margin is very different than software.

Yeah.

I think it's hard to, it's one of those things you kind of know and feel like the worst deals that we walk into is when someone said, I've optimized everything, not a place you want to be.