SEG Q1 2019

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. 

SEG SaaS Q1 2019 EV/Revenue Trends

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.

SEG SaaS Q1 2019 EV/Rev Multiple distribution

Some Vertical Markets Are Trading At Premiums

SEG SaaS Q1 2019 EV/Rev by vertical

Private Equity Buyers Accounted for the Majority of Deals

SEG SaaS Q1 2019 Private Equity Majority

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.