The Software Equity Group (SEG) has published their 2019 Annual Report that analyzes 2018 software M&A transactions.  SEG consistently publishes comprehensive, free, analytical research on M&A transactions.  The 93 page report is chockfull of stats and trends including EV/Revenue, EV/EBITDA multiples, revenue growth, margin growth, and EBITDA growth and trends over the past three years.  SEG separately reports on SaaS companies as well as more traditional licensed software companies.

You can access the full report here – a simple email registration is all that is required.

Here are four extracts from the report:

SaaS Company Revenue Growth & EV/Revenue by Product Category

Saas Company 2018 EV/Revenue Multiples

Top 25% SaaS Company Valuation Metrics

4Q18 SEG Saas UIndex top 25%

Software Company Revenue Growth & EV/Revenue by Product Category

SEG 2018 Software Index EV/Revenue Multiples

Top 25% Software Company Valuation Metrics

4q18 SEG Software Index top 25%

By John Mecke

John is a 25 year veteran of the enterprise technology market. He has led six global product management organizations for three public companies and three private equity-backed firms. He played a key role in delivering a $115 million dividend for his private equity backers – a 2.8x return in less than three years. He has led five acquisitions for a total consideration of over $175 million. He has led eight divestitures for a total consideration of $24.5 million in cash. John regularly blogs about product management and mergers/acquisitions.