Re:The other kind of staff software engineer
by mbesto on Friday May 13, 2022 @04:10PM
(#31372052)
Another thing to consider for tech folk here: if you convince the company of cost savings always consider the possible equity value increase. Software led companies can generally command high EBITDA multiples. If you cost $100k and save the company $100k in annual costs, then you potentially have created $2,000,000 in equity value (20x is a safe EBITDA multiple to assume). A business owner would take that deal any day of the year, especially one that might sell to a PE.
Note - Companies can be valued at top line ARR/Revenue and/or EBITDA, so YMMV, even in the PE world.
Note - Companies can be valued at top line ARR/Revenue and/or EBITDA, so YMMV, even in the PE world.