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.
L40° is an M&A advisory firm focused on cross border sell-side and strategic debt advisory for mid-market software and technology companies.
M&A stands for Mergers & Acquisitions. Tech M&A focuses specifically on technology-driven businesses, such as SaaS, marketplaces, or digital platforms, where the technology stack, intellectual property, user base, and recurring revenue are key assets. It’s faster-moving, data-driven, and more specialized than traditional industries. In the context of L40°, Tech M&A refers to working closely with founders to help them sell their technology and software companies.
L40° represents latitude 40° North, a bridge between North America and Europe, two of the world’s most dynamic tech ecosystems. With offices in Madrid, Miami and Lisbon, L40° operates in the intersection of both markets, providing access to international markets.
L40° works mainly with mid-sized software and technology firms, including SaaS, AI native companies, marketplaces, digital platforms, and other tech-driven businesses.
L40° 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: whether to sell, growth through strategic acquisition partnerships, or restructure
The team is also open to engaging with earlier‑stage founders who want strategic guidance to prepare for future milestones. At the upper end, L40°’s team has advised on deals ranging from growth‑stage to select transactions approaching the billion‑dollar mark, experience they now bring to every engagement.
L40°’s sell‑side advisory focuses on guiding tech founders through the process of selling their business. From preparing the company for market, identifying and engaging the right acquirers, leading negotiations, managing due diligence, and driving the deal through to close so founders can stay focused on running the business.
Debt advisory, on the other hand, helps companies raise and structure financing for complex needs such as asset‑backed facilities, structured debt, or acquisition financing. Drawing on experience as both lender and borrower, L40° acts as an independent advisor to secure the most favorable terms and ensure the financing supports long‑term growth.
For founders working with L40°, the process is a structured, end-to-end advisory designed to maximize value while minimizing disruption. The team:
- Creates a customized exit strategy tailored to the founder’s objectives and the unique dynamics of the business.
- Prepares the business for sale, including valuation analysis, positioning, and creating materials that highlight its strengths to potential buyers.
- Identifies and engages qualified buyers globally, both strategic and financial, through a targeted and discreet approach.
- Leads negotiations and manages the sale process, including letters of intent (LOIs) and due diligence up to closing and offering post-transaction support, ensuring a seamless experience.
By handling the heavy lifting of a competitive sale process, L40° allows founders and their teams to stay focused on running their business while pursuing the optimal outcome.
L40° leverages global networks, proprietary databases, and active relationships within North American and European tech ecosystems. Every outreach is targeted, customized, and designed to attract highly aligned buyers or investors who match your vision.
L40° focuses on sell-side advisory and strategic debt raises, which are generally for larger transactions, typically over six figures. If raising a smaller round is part of a longer-term plan toward an eventual exit, you’re welcome to reach out and discuss whether it could make sense in that context.
Absolutely. L40° builds trusted relationships long before a formal transaction. The team encourages tech founders to have early conversations to explore their options, define their goals, and prepare for future opportunities.
L40° combines the perspective of experienced founders with deep investment banking expertise. Its partners have built and exited successful companies, including Miami-based Boopos and the Spanish unicorn Cabify, and also have a strong track record in top-tier investment banking. This unique combination gives L40° the ability to understand both the operational realities of running a tech business and the financial rigor required for high-value transactions.
Unlike mainstream investment banks, L40° is deeply specialized in software and technology, offering:
- Partner-led, hands-on execution and industry expertise tailored to tech founders
- Cross-border reach, covering both Europe and the Americas
- Flexible, long-term partnerships rather than purely transactional relationships
- Custom strategies focused on founder priorities, not volume or quotas
This approach allows founders to work with a team that truly understands their business, their market, and their goals.
Our team has completed 180+ M&A transactions for software, SaaS, marketplace, and digital platform companies. Furthermore, the team has experience raising over $1B in funds.
For an overview of L40°’s advisory experience and portfolio, please refer to the Transactions page, which highlights selected companies and deals across tech and software sectors.
Founders and companies can reach out to L40° through the official website or LinkedIn page. The team responds promptly to all inquiries regarding partnerships or advisory services.
Founders may sell their tech business for many reasons: reaching a growth ceiling, seeking liquidity after years of building, aligning with a strategic partner to scale faster, or simply moving on to a new project. For many founders, an exit is both a financial and strategic milestone.
An M&A process usually follows five stages: Preparation, Go-to-Market, Buyer Outreach, Due Diligence, and Closing. It starts with cleaning and packaging data, building materials, and defining your story. Then, advisors reach out to buyers, manage negotiations, and guide you through due diligence until the transaction closes.
Strategic buyers are typically larger software or ecosystem players focused on product and market fit. They often integrate your company into their platform, streamline overlaps, and may retain key team members, offering strong upside through scale and brand synergy when alignment is high.
Financial buyers focus on growth and efficiency. They often scale the business through bolt-on acquisitions or operational improvements, relying on founder continuity or new leadership. These deals may often include a second liquidity opportunity for the founder.
In M&A, a valuation multiple is the ratio used to value a company based on its financial metrics. For SaaS businesses, it’s most often a multiple of ARR or EBITDA. It reflects 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 buyers perceive growth, quality, and risk. In SaaS, the companies that command higher multiples 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 detailed review of your company, covering financials, contracts, operations, and technology. It helps confirm that all information is accurate and that there are no hidden risks.
Being organized and transparent during this stage builds trust and helps protect your valuation.
An earnout is a contractual provision that defers part of the purchase price in an M&A transaction, contingent on the acquired company achieving specific post-close performance targets. These targets can be financial, such as annual recurring revenue (ARR), as well as operational, such as completing a product roadmap or retaining key customers.
Earnouts are often used to bridge the gap between valuation expectations.
A full sale means the founder transfers complete ownership and control of the company to the buyer.
A partial exit allows the founder to sell a portion of their shares while retaining a stake in the business, typically partnering with new investors to capture future growth.
A Letter of Intent (LOI) is a formal written document from a buyer expressing their intent to acquire your company after initial discussions and review of key information.
The LOI is deal-specific and outlines the main terms of the proposed deal, such as price, structure, exclusivity, and timeline, and serves as the basis for due diligence and final agreements.
It typically precedes the due diligence process and drafting final agreements.
For mid-market SaaS and tech businesses, a full process would typically take 5 to 8 months, from preparation to closing. Preparation often makes the biggest difference: well-prepared companies move faster and negotiate from strength.
Not necessarily. Some SaaS and tech companies can be acquired before reaching profitability, but a clear path to breakeven will always be important. The answer to this question will really depend on the type of company, its underlying financials and growth opportunities, and perhaps most importantly, the buyer.
Fundraising involves selling a minority stake in your company to investors to raise capital for growth.
M&A, on the other hand, usually means selling a controlling or full ownership stake to another company or financial buyer.
An advisor brings process, positioning, and access. They help you prepare materials, reach the right buyers, negotiate better terms, and manage the complexity of due diligence, while you focus on running the business. The right advisor can protect valuation, save months, and turn a deal into a win for all sides. Contact us.
