3Q17 SaaS Valuations Remain Near All-Time High

Our 3Q17 Saas M&A Snapshot is an evaluation of quarter’s most interesting trends, including leading product category transaction activity and valuations, and notable private equity activity.

SaaS M&A Valuation Highlights:

  • 3Q17 posted a TTM median revenue multiple of 4.5x, on par with last quarter’s 4.6x multiple.
  • EV/Revenue multiples have remained near an all-time high for much of the past two years.
  • eCommerce Enablement Software achieved the highest TTM median EV/Revenue multiple of 5.0x in 3Q17. This category includes notable transactions from the last three years such as Futaba Corporation’s 3Q17 acquisition of Kabuku (13.9x EV/Rev) and Salesforce’s 2Q16 acquisition of Demandware (10.5x EV/Rev).

For more on SaaS Valuations, check out page 6 in our 3Q17 SaaS M&A Snapshot.