The Impact to Startups of the LinkedIn Acquisition

Microsoft's $26.2 billion acquisition of LinkedIn at 8.1x trailing and 6.7x forward revenue multiples sets a significant benchmark for the 2016 SaaS M&A market. The article analyzes how acquisition multiples correlate most strongly with free cash flow margin, followed by revenue growth and gross margin, and discusses implications for competitive positioning in CRM and future startup exit valuations.