Answers to the most common questions about L40°, our sell-side M&A advisory services, and how we help software and technology founders navigate complex decisions around growth, capital raising, and business exits.
L40º is an M&A advisory firm focusedon cross border sell-side and strategic debt advisory for mid-market softwareand technology companies.
M&A stands for Mergers & Acquisitions. Tech M&A focusesspecifically on technology-driven businesses, such as SaaS, marketplaces, ordigital platforms, where the technology stack, intellectual property, userbase, and recurring revenue are key assets. It’s faster-moving, data-driven,and more specialized than traditional industries. In the context of L40º, TechM&A refers to working closely with founders to help them sell theirtechnology and software companies.
L40° represents latitude 40° North, a bridge between NorthAmerica and Europe, two of the world’s most dynamic tech ecosystems. Withoffices in Madrid, Miami and Lisbon, L40º operates in the intersection of bothmarkets, providing access to international markets.
L40º works mainly with mid-sizedsoftware and technology firms, including SaaS, AI native companies,marketplaces, digital platforms, and other tech-driven businesses.
L40º typically partners with tech and SaaS companies that have:
● Proven product–market fit
● Enterprise value above$20M in the context of an exit process
● Clear ambitions: whetherto sell, growth through strategic acquisition partnerships, or restructure
The team is also open to engaging with earlier‑stage founders who wantstrategic guidance to prepare for future milestones. At the upper end, L40º’steam has advised on deals ranging from growth‑stage to select transactionsapproaching the billion‑dollar mark, experience they now bring to everyengagement.
L40º’s sell‑side advisory focuses on guiding tech foundersthrough the process of selling their business. From preparing the company formarket, identifying and engaging the right acquirers, leading negotiations,managing due diligence, and driving the deal through to close so founders canstay focused on running the business.
Debt advisory, on the other hand, helps companies raiseand structure financing for complex needs such as asset‑backed facilities,structured debt, or acquisition financing. Drawing on experience as both lenderand borrower, L40º acts as an independent advisor to secure the most favorableterms and ensure the financing supports long‑term growth.
For founders working with L40, theprocess is a structured, end-to-end advisory designed to maximize value whileminimizing disruption. The team:
- Creates a customizedexit strategy tailored to the founder’s objectives and the unique dynamics ofthe business.
- Prepares the businessfor sale, including valuation analysis, positioning, and creating materialsthat highlight its strengths to potential buyers.
- Identifies and engagesqualified buyers globally, both strategic and financial, through a targeted anddiscreet approach.
- Leads negotiations andmanages the sale process, including letters of intent (LOIs) and due diligenceup to closing and offering post-transaction support, ensuring a seamlessexperience.
By handling the heavy lifting of acompetitive sale process, L40 allows founders and their teams to stay focusedon running their business while pursuing the optimal outcome.
L40 leverages globalnetworks, proprietary databases, and active relationships within North Americanand European tech ecosystems. Every outreach is targeted, customized, anddesigned to attract highly aligned buyers or investors who match your vision
L40º focuses on sell-side advisory and strategic debt raises, which aregenerally for larger transactions, typically over six figures. If raising asmaller round is part of a longer-term plan toward an eventual exit, you’rewelcome to reach out and discuss whether it could make sense in that context.
Absolutely. L40º builds trusted relationships long beforea formal transaction. The team encourages tech founders to have earlyconversations to explore their options, define their goals, and prepare forfuture opportunities.
L40º combines theperspective of experienced founders with deep investment banking expertise. Itspartners have built and exited successful companies, including Miami-basedBoopos and the Spanish unicorn Cabify, and also have a strong track record intop-tier investment banking. This unique combination gives L40º the ability tounderstand both the operational realities of running a tech business and thefinancial rigor required for high-value transactions.
Unlike mainstream investment banks, L40º is deeply specialized in software andtechnology, offering:
- Partner-led, hands-on execution and industryexpertise tailored to tech founders
- Cross-border reach, covering both Europe and theAmericas
- Flexible, long-term partnerships rather than purelytransactional relationships
- Custom strategies focused on founder priorities, notvolume or quotas
This approach allowsfounders to work with a team that truly understands their business, theirmarket, and their goals.
Our team has completed 180+ M&Atransactions for software, SaaS, marketplace, and digital platform companies.Furthermore, the team has experience raising over $1B in funds.
For an overview of L40º’s advisoryexperience and portfolio, please refer to the Transactions page, which highlights selectedcompanies and deals across tech and software sectors.
Founders and companies can reach out to L40º through the official website or LinkedIn page. The team respondspromptly to all inquiries regarding partnerships or advisory services.
Founders may sell their tech business for many reasons: reaching a growthceiling, seeking liquidity after years of building, aligning with a strategicpartner to scale faster, or simply moving on to a new project. For manyfounders, an exit is both a financial and strategic milestone.
An M&A process usually follows fivestages: Preparation, Go-to-Market, Buyer Outreach, Due Diligence, and Closing.It starts with cleaning and packaging data, building materials, and definingyour story. Then, advisors reach out to buyers, manage negotiations, and guideyou through due diligence until the transaction closes.
Strategic buyers are typically largersoftware or ecosystem players focused on product and market fit. They oftenintegrate your company into their platform, streamline overlaps, and may retainkey team members, offering strong upside through scale and brand synergy whenalignment is high.
Financial buyers focus on growth and efficiency.They often scale the business through bolt-on acquisitions or operationalimprovements, relying on founder continuity or new leadership. These deals mayoften include a second liquidity opportunity for the founder.
In M&A, avaluation multiple is the ratio used to value a company based on its financialmetrics. For SaaS businesses, it’s most often a multiple of ARR or EBITDA. Itreflects how much a buyer is willing to pay relative to your company’s size,efficiency, and growth profile.
Valuation is ultimately a reflection of both the market and how buyersperceive growth, quality, and risk. In SaaS, the companies that command highermultiples are those that combine strong fundamentals with efficient growth.
Key valuation drivers include revenue quality (recurring vs. one-off),growth rate, retention (NRR, GRR), margins, scalability, market positioning,and data cleanliness.
Due diligence is the buyer’s detailedreview of your company, covering financials, contracts, operations, andtechnology. It helps confirm that all information is accurate and that thereare no hidden risks.
Being organized and transparent during this stage builds trust and helpsprotect your valuation.
An earnout is a contractual provision that defers part ofthe purchase price in an M&A transaction, contingent on the acquiredcompany achieving specific post-close performance targets. These targets can befinancial, such as annual recurring revenue (ARR), as well as operational, suchas completing a product roadmap or retaining key customers.
Earnouts are often used to bridge the gap between valuationexpectations.
A full sale means the founder transfers complete ownership and control ofthe company to the buyer.
A partial exit allows the founder to sell a portion of their shares whileretaining a stake in the business, typically partnering with new investors tocapture future growth.
A Letter of Intent (LOI) is a formal writtendocument from a buyer expressing their intent to acquire your company afterinitial discussions and review of key information.
The LOI is deal-specific and outlines the main terms of the proposeddeal, such as price, structure, exclusivity, and timeline, and serves as thebasis for due diligence and final agreements.
It typically precedes the due diligence process and drafting finalagreements.
For mid-market SaaS and tech businesses, a full process would typicallytake 5 to 8 months, from preparation to closing. Preparation often makes thebiggest difference: well-prepared companies move faster and negotiate fromstrength.
Not necessarily. Some SaaS and tech companies can be acquired beforereaching profitability, but a clear path to breakeven will always be important.The answer to this question will really depend on the type of company, itsunderlying financials and growth opportunities, and perhaps most importantly,the buyer.
An advisor brings process, positioning, and access. They help you preparematerials, reach the right buyers, negotiate better terms, and manage thecomplexity of due diligence, while youfocus on running the business. The right advisor can protect valuation, savemonths, and turn a deal into a win for all sides. Contact us.
