I regularly track SaaS M&A. The Software Equity Group regularly publishes great research on SaaS M&A. Recently they released their SEG 2024 Annual SaaS Report. The report includes:
An Overview of Public SaaS Companies. A thorough analysis of stock prices, financial data, and valuation performance for the 120+ publicly traded B2B software companies comprising their SEG SaaS Index™. SEG SaaS Index EV/Revenue by Product Category. Recapping SaaS M&A Activity. In 2023, there was a notable increase in M&A activity, showing a robust performance with a 9% rise over 2020, pre-COVID levels. Although the overall aggregate software M&A volume is now comparable to pre-2021 figures, the SaaS M&A segment continued its active momentum in 2023.

I regularly track SaaS valuations as a part of my consulting business. Tracking the valuations of public SaaS companies is easy, privately held SaaS companies are a bit more challenging, but not impossible. Year to date, the median public SaaS company valuation is up about 18.5%, while the overall Nasdaq is up 36.7%. In the past month, public SaaS company valuations have improved 9.4% versus 9.1% for the Nasdaq and 6.1% for the NYSE. Private company valuations have followed the same trends. The median EnterpriseValue/Revenue (ttm) multiple for public SaaS companies was 5.8x down from 16.4x in February 2021

The early stage VC funding market has experienced a significant decline since the market peak in February 2021. While most of my clients have viable products and market opportunities, fundraising has become a significant challenge.

I regularly M&A and valuation trends in the SaaS industry. One of my go-to resources is the Software Equity Group’s free research. Their recent report 2Q23 Quarterly SaaS Report shows […]