Elon Musk’s $44 Billion takeover of Twitter will be another radical shift for the software industry. In many way what has transpired in the past week reminds me of Private Equity Tech M&A in the early 2000s. There are some very important differences however. Will the X super app be the long term savior of Twitter and another huge notch in Elon’s belt?
The Software Equity Group (SEG) regularly publishes quantitative research on the software and SaaS market M&A activity. The SEG SaaS Index contains 110 publicly traded SaaS companies. They recently published their SEG Snapshot: 3Q22 SaaS Public Market Update -you can download it for free here. It provides a ton of data on SaaS valuations and financial operating metrics. The Median SaaS company Enterprise Value/Revenue multiple declined another 10% since Q2 and a whopping 62% since September 2021.
Baron Rothschild, an 18th-century British nobleman and member of the Rothschild banking family, is credited with saying that “the time to buy is when there’s blood in the streets.” In late 2022 it is clear that the SaaS market is in trouble. The Nasdaq is off over 34%. Median Enterprise Value/Revenue valuations are off 58% in comparison to their peak in 2021. Many companies might consider now to be a good time to jump into the M&A game. Experience has shown, however, that a well-reasoned M&A strategy is required for success
I belong to a Facebook Group called Product Management Memes. It has over 5,974 members and is simply a meme stash for product managers, marketers, and corporate life. People post amusing stuff every day. There’s no self-promotion or spam, just entertainment. Here are 18 of the most popular posts from May 2022 based on likes and comments.
In the past few months, I have had an unusual number of inquiries from private equity firms about the state of the electronic data interchange (EDI) market. As a corporate development executive, I evaluated over 200 EDI companies as acquisition candidates and led the operational side of a large EDI acquisition. Since then I have conducted over 50 briefings about the state of the EDI market and its key players for various private equity firms and VCs in the past 10 years. The decline of SaaS valuations from the lofty heights of 2021 has sparked an interest in value-driven investors. This got me thinking. Is there an opportunity to disrupt the EDI industry in 2023 through some creative strategic acquisitions?
The best part of being a business owner is seeing your vision come to life. You get to watch as the services and products you once only dreamed of become a reality. It’s not enough to simply offer a product or service, though — to see your dreams fully come to fruition, you need to find tech that allows you to innovate and manage daily operations efficiently. With the right software and applications, you can do so while also improving your digital marketing strategy.
The SEG SaaS Index contains 110 publicly traded SaaS companies. They recently published their April 2022 SEG SaaS Index Update. The Median SaaS company Enterprise Value/Revenue multiple declined another 7% since March and a whopping 42% since July 2021.
Layoffs in the startup industry are spiking again. In spite of a good jobs report this week, layoffs are climbing again. So far in Q2, 4,720 startup employees have lost their jobs in layoffs at 25 companies. As Q1 earnings season gets into full swing in the next few weeks expect to see more downsizing as companies prepare for a rocky 2022.
I belong to a Facebook Group called Product Management Memes. It has over 4,833 members and is simply a meme stash for product managers, marketers, and corporate life. People post amusing stuff every day. There’s no self-promotion or spam, just entertainment. Here are 31 of the most popular posts from April 2022 based on likes and comments.
The Software Equity Group recently published their SEG Snapshot: 1Q22 SaaS Public Market Update. The impact of the market downturn can be clearly seen across all categories of SaaS.