The Software Equity Group has published its Q1 snapshot of SaaS M&A transactions. SEG consistently publishes free, high quality, quantitative research on technology mergers and acquisitions. Click here to access the entire report. Some key insights noted in the report include:
Enterprise Value/Revenue Multiples Continue to be Strong
SaaS valuations remain strong – in 12 of 13 past quarters the median EV/Revenue multiple has been greater than 4.0x.
Valuations for Subscale Revenue (<$50M ttm) are Significantly Discounted
Multiples did vary significantly by company revenue scale. Firms with subscale revenues are trading at a 50% discount in comparison to firms with revenues greater than $50M.
Some Vertical Markets Are Trading At Premiums
Private Equity Buyers Accounted for the Majority of Deals
