The 2014 Software Industry Financial Report
, a comprehensive 102 page analysis of 2013’s software industry mergers and acquisitions, initial public offerings, venture capital investments, public software company financial performance and market valuations, and software industry market trends over the past year, is now available for download.
The complete Report includes SEG’s 2014 Software Industry Buyers Survey, an exclusive survey of corporate development executives from the 300 largest software companies about their M&A plans, priorities, budgets and thinking for the year ahead. Learn what we learned. The Report recaps the financial performance of public Software, SaaS and Internet companies in 2013, and looks deeply and insightfully at 2013’s Software, SaaS and Internet M&A exit valuations, deal volumes and trends. And of course, our 2014 Software Industry Financial Report takes a look at the year ahead, including a forecast of software industry M&A, venture capital and IPO activity in 2014.
Software Equity Group’s research reports are now read and relied upon by over 70,000 software industry senior executives, entrepreneurs, venture capitalists and private equity investors in 74 countries across the globe. Shouldn’t you know what they know?
Select Report Highlights:
- 44% of buyers responding to our 2014 Buyers Survey plan to acquire three or more companies this year. What size deals are they targeting? What’s most important to them when valuing a target– growth, profitability or product? Do they expect to pay more or less this year than last?
- Our 2014 Buyers Survey asked “how important is it in 2014 that your M&A targets have a big data or mobile strategy successfully deployed?” We were surprised by their response; you may be, as well.
- SaaS M&A transactions grew 25% last year, and the median SaaS exit multiple was more than double that paid to on-premise software sellers. Is that really all about the value of recurring revenue, or is there something else at play here?
- The median exit multiple for on-premise software companies varied widely by product category, from 3.1x TTM revenue to 1.2x. What categories are hot? You’ll likely be surprised.
- Internet M&A volume remains near record levels, how did exit multiples fare after 2012’s plunge?
- The median EV/Revenue multiple of Public SaaS companies is the highest in six years, but individual SaaS EV/Revenues range from 32.9x to 1.3x depending on TAM, revenue trajectory, profitability and product category. What do investors really value?
- Median profitability of public SaaS companies declined in 2013, do investors care?
- Our SEG On-Premise Software Index saw median TTM revenue growth decline, while EBITDA margins held steady in 2013. How did that impact their market valuation?
- 26 Software/SaaS/Internet companies went public in 2013, matching the highs achieved in 2007 and 2012. By year end, some gave investors handsome returns, while others floundered. Which companies and product categories did best? What does this portend for valuations in 2014?
If you have any difficulty completing the purchase of your 2014 Annual Report, please contact Audrey Cole at acole
@softwareequity.com or 858-509-2800.
Director, Business Development
2014 Annual Software Industry Financial Report Topics:
About Software Equity Group
Leaders in Software M&A
Extensive Global Reach
Software Industry Macroeconomics
U.S. GDP and Unemployment
Global IT Spending
E-Commerce and Digital Advertising Spend
Stock Market Performance
Public Software Financial and Valuation Performance
The SEG Software Index
The SEG Software Index: Financial Performance
The SEG Software Index: Market Multiples
The SEG Software Index by Product Category
The SEG Software Index by Product Category: Financial Performance
The SEG Software Index by Product Category: Market Multiples
Public SaaS Company Financial and Valuation Performance
The SEG SaaS Index
The SEG SaaS Index: Financial Performance
The SEG SaaS Index: Market Multiples
The SEG SaaS Index by Product Category
The SEG SaaS Index by Product Category: Financial Performance
The SEG SaaS Index by Product Category: Market Multiples
Public Internet Company Financial and Valuation Performance
The SEG Internet Index
The SEG Internet Index: Financial Performance
The SEG Internet Index: Market Multiples
The SEG Internet Index by Product Category
The SEG Internet Index by Product Category: Financial Performance
The SEG Internet Index by Product Category: Market Multiples
Software Industry M&A Market Update
Software/SaaS M&A Deal Volume and Spending
Software M&A Exit Multiples
Software M&A by Ownership Structure and Size
Software M&A by Vertical and Horizontal Markets
Software M&A Deal Volume by Product Category
Software M&A Exit Multiples by Product Category
SaaS M&A Deal Volume and Exit Multiples
SaaS M&A by Product Category
Internet M&A: Deal Volume and Exit Multiples
Internet M&A by Product Category
The SEG Software Index Companies
The SEG SaaS Index Companies
The SEG Internet Index Companies
The SEG Software Index Metrics by Product Category
The SEG SaaS Index Metrics by Product Category
The SEG Internet Index Metrics by Product Category
2013 Select Public Seller Exit Multiples
2013 Software Mega Deals (>$500M)
2013 Most Active Buyers
2013 Select SaaS Sellers