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The 2013 Software Industry Financial Report, a comprehensive 54 page analysis of 2012'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 2013 Software Industry Buyers Survey, an exclusive survey of corporate development executives from the 200 largest software companies about their M&A plans, priorities, budgets and thinking for the year ahead. Learn what we learned. The Report recaps the Software, SaaS and Internet industry's financial performance in 2012and looks deeply and insightfully at 2012's Software, SaaS and Internet M&A exit valuations, deal volumes and trends. And of course, our 2013 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 2013.
Software Equity Group's research reports are now read and relied upon by nearly 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?
- 43% of buyers responding to our 2013 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 2013 Buyers Survey asked “how important is it in 2013 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 50% 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 continued to soar in 2012 but median exit multiples plunged. Why?
- The median market valuation (median EV/Revenue multiple) of Public SaaS companies is the highest in five years, but individual SaaS market valuations range from 1.8x to 10.5x EV/Rev depending on revenue trajectory, profitability and product category. What do investors really value?
- Median profitability of public SaaS companies declined in 2012, but the extra $$$ spent on sales and market didn’t translate into growth. Where are SaaS companies spending their money?
- Our SEG On-Premise Software Index (142 public software companies) saw median TTM revenue growth decline, while EBITDA margins held steady in 2012. How did that impact their market valuation?
- 26 Software/SaaS/Internet companies went public in 2012, matching the high achieved in 2007. 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 2013?
If you have any difficulty completing the purchase of your 2013 Annual Report, please contact Kelly LaMarca at klamarca@softwareequity.com or 858-509-2800.
Additionally, don't miss our webinar on February 21st at 1:00pm Eastern, for an extraordinary webcast covering Software, SaaS and Internet financial performance and M&A exit valuations, exit timing, due diligence, software M&A contract terms and more! http://bit.ly/WOE0nN
2013 Annual Software Industry Financial Report Topics:
Global and U.S. Economy: Software Industry Macroeconomics
IT Spending
Internet Retail Spending and Advertising
Public Software/SaaS/Internet Company Stock Performance
Public Software Company Financial Performance
Public Software Company Market Valuations: Overall
Public Software Company Financial Performance: By Product Category
Public Software Company Market Valuations: By Product Category
Public Software as a Service (SaaS) Financial Performance
Public Software as a Service (SaaS) Company Market Valuations
Public Software as a Service (SaaS) Financial Performance: By Product Category
Public Software as a Service (SaaS) Company Market Valuations: By Product Category
Public Internet Company Financial Performance
Public Internet Company Market Valuations
Public Internet Company Financial Performance: By Product Category
Public Internet Company Market Valuations: By Product category
Initial Public Offerings
Venture capital investment
The Buyers Speak: Software Equity Group’s 2013 M&A Survey
Software/SaaS M&A Deal Volume and Spending
Important Change in Software and SaaS M&A Data Accounting
Software M&A Valuations
Software M&A Valuations By Target’s Equity Structure
Software M&A Valuations By Vertical and Horizontal Markets
M&A Valuations by Software Product Category
Software as a Service (SaaS) M&A Deal Volume and Valuations
Internet M&A Deal Volume and Valuations
Appendix A: 2012 Public Software Market Valuations and Statistics by Product Category
Appendix B: 2012 SaaS Public Market Valuations and Statistics by Product Category
Appendix C: 2012 Internet Public Market Valuations and Statistics by Product Category
Appendix D: 2012 Mergers and Acquisitions, Select Public Seller Valuations
Appendix E: 2012 Mergers and Acquisitions, Most Active Buyers
Appendix F: 2012 Mergers and Acquisitions, Select Software Industry Mega-Deals
Appendix G: 2012 Mergers and Acquisitions, Select Software-as-a-Service Sellers
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