Industry Focus and Expertise
Dawn of a New Day
Public Software Co. Valuations – Efficient Growth Drives Value
2021 an anomaly | 2022 multiples corrected | 2023 rewards growth and profitability
Growth AND Profitability Drives Higher (> Double) Valuation
Valuation Framework: The Rule of 40%
Software M&A Outlook Continues to be Positive
- While Tech M&A dropped sharply in late 2022, dealmakers believed business would pick back up in 2023, according to 451 Research’s annual M&A Outlook Survey
- Software and Security expected to receive largest increase in M&A spending in 2023
Global Software M&A – Q Deal Count “Normalizing”
- Q2 2023 deal count was 29% lower than Q2 2022 however, just 2% below 2018-Q2 2023 Avg. (486) and 5% below LTM Avg. (500)
Global Software M&A – Q Deal Count “Normalizing”
- PE platform buyers and increase in take-private drive PE deal X to exceed public strategics
- Strategics typically more selective on higher deal X assets – back to long-term averages
SaaS M&A Multiples Show High Std. Dev.
- 75% quartile revenue X’s are approx. double or more 25% quartile X’sate drive PE deal X to exceed public strategics
Q2 Software Financing – Historically Very Solid
- Q2 investment of $19B and 1,550 est. deals only exceeded by 2021 and H1 2022
AI is Already Reshaping the Majority of SaaS Products
Cloud Economy and SaaS Investor Trends
AI & ML Global VC Deal Activity
Vertical Applications in AI / ML = $212B Mkt Opportunity
Vertical Applications in AI / ML = $212B Mkt Opportunity
