M&A prices drop in downturns as acquirers prioritize cost-cutting
Mark Suster · 20VC: Upfront's Mark Suster on COVID Redefining What A Great Company Looks Like and What Valuations Look Like, Why Pay-To-Play Is Back On The Table & Why We Will See The Death of Party Rounds · Apr 20, 2020 · at 20:25
Mark Suster, Managing Partner at Upfront Ventures, responds to a tweet by Jason Lemkin regarding the impact of economic downturns on M&A valuation multiples.
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“Yeah, no question. Because if there's a limited set of buyers and a whole bunch of companies that want to be acquired and remember my mindset at the start of the podcast was people right now are not paid to innovate. They're not paid to innovate. They're paid to cut costs.”
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