DealScout Analysis — LOI Review
Company: SaaS B2B · €2.1M revenue
Offer: €4.2M (2× revenue multiple)
Analyzed: May 2026
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VALUATION ASSESSMENT
Offer: €4.2M · 2× revenue multiple
Market range: 2.5×–4× for B2B SaaS
Verdict: ⚠️ BELOW MARKET
Estimated fair value: €5.25M–€8.4M
Negotiation upside: €1.05M–€4.2M
⚠️ 4 CLAUSES TO NEGOTIATE:
① Earn-out: 40% of price (€1.68M) tied to 3yr targets — unusually high. Market standard: 15–25%. → Negotiate: reduce to 20% max.
② Non-compete: 5 years, worldwide — excessive. Standard: 2–3 years, regional. → Negotiate: 3 years, EU only.
③ Warranty period: 5 years — above standard (2–3 years). → Negotiate: 3 years maximum.
④ Price adjustment: no cap on working capital adjustment. → Negotiate: cap at €150,000.
💬 YOUR COUNTER-POSITION: We welcome the offer and are committed to completing this transaction. We would like to propose the following adjustments before proceeding...
✅ RECOMMENDATION: Counter at €5.8M with earn-out capped at 20% on 2yr targets.