The 2015 Software Industry Financial Report
, a comprehensive 115 page analysis of 2014's software industry mergers and acquisitions, initial public offerings, venture capital investments and public software company financial performance over the past year, is now available for download.
The complete Report includes the results of SEG's 2015 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, categorizes and compares the financial and stock performance of public Software, SaaS and Internet companies in 2014, and looks deeply and insightfully at 2014's Software, SaaS and Internet M&A exit valuations, deal volumes and trends. And of course, our 2015 Software Industry Financial Report takes a look at the year ahead, including a forecast of software industry M&A activity in 2015.
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 78 countries across the globe. Shouldn't you know what they know?
- 67% of buyers responding to our 2015 Buyers Survey plan to acquire at least one 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 2015 Buyers Survey asked "how important is it in 2014 that your M&A targets have a SaaS or mobile strategy successfully deployed?" We were surprised by their response; you may be, as well.
- The number of SaaS M&A transactions grew 19% last year, and the median SaaS exit multiple was more than 60% higher than that paid to on-premise software sellers, but notably lower than in prior years. What’s at play here?
- The median exit multiple for on-premise software companies varied widely by product category, from 2.8x TTM revenue to 1.1x. What categories are hot? You'll likely be surprised.
- Internet M&A deal volume remains near record levels, how did exit multiples fare after 2012's plunge?
- The median EV/Revenue trading multiple of Public SaaS companies closed 2014 near a six year high, but individual SaaS market valuations ranged from 24.6x to 0.7x. What’s driving public SaaS valuations today? What do investors really value?
- The median profitability of public SaaS companies declined in 2014. Does the Street, care?
- Public on-premise software companies comprising our SEG Software Index saw median TTM revenue growth decline, once again, in 2014, while EBITDA margins held steady. How much of that was a function of lackluster IT capital spending by large enterprises. What’s the prognosis for next year? How did the declining growth rate impact their market valuations?
- 32 Software/SaaS/Internet companies went public in 2014, the highest amount of IPOs since 2005. 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 2015?
If you have any difficulty completing the purchase of your 2015 Annual Report, please contact Audrey Cole at acole
@softwareequity.com or 858-509-2800.
Director, Business Development
2015 Annual Software Industry Financial Report Topics:
About Software Equity Group
Leaders in Software M&A
Extensive Global Reach
About Software Equity Group
Software Industry Macroeconomics
U.S. and Global GDP
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: Public 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: Public Market Multiples
Public SaaS Company Financial and Valuation Performance
The SEG SaaS Index
The SEG SaaS Index: Financial Performance
The SEG SaaS Index: Public Market Multiples
The SEG SaaS Index by Product Category: Financial Performance
The SEG SaaS Index by Product Category: Public Market Multiples
Public Internet Company Financial and Valuation Performance
The SEG Internet Index
The SEG Internet Index: Financial Performance
The SEG Internet Index: Public 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
Annual Software IPO Trends
2014 Software IPO Data
Venture Capital Activity: All Industry Sectors
Venture Capital Activity: Software
The Buyers Speak: Software Equity Group's 2015 Annual M&A Survey
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 Key Metrics
The SEG Software Index Key Metrics by Product Category
The SEG SaaS Index Key Metrics
The SEG SaaS Index Key Metrics by Product Category
The SEG Internet Index Key Metrics
The SEG Internet Index Key Metrics by Product Category
2014 Select Public Sellers
2014 Software Mega Deals (>$500M)
2014 Most Active Buyers
2014 Select SaaS Sellers