Tag: M&A

Software M&A Valuation by Size

...a rapidly growing smaller company will often deem an exit premature and spurn advances by a strategic acquirer, prompting the larger suitor to raise the bid. This excerpt is from our complimentary Q3 2012 Software Industry Financial Report which can be downloaded here:  https://softwareequity.com/research_reports.aspx Another key driver of exit multiples

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Software M&A Valuations

...one-third of all software/SaaS M&A transactions with ascertainable exit multiples had an EV/Revenue multiple of 3.0x or greater. This excerpt is from our complimentary Q3 2012 Software Industry Financial Report which can be downloaded here:  https://softwareequity.com/research_reports.aspx The software industry’s median exit multiple was 2.3x TTM revenue in 3Q12, up sharply

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Oracle acquires Taleo

Transaction Details Date: Announced on 2/9/2012 Enterprise Value:  $1.8 billion Seller Revenue (TTM):  $309 million Revenue Multiple (TTM):  6.0x Premium:  The purchase price is 18% and 24% above Taleo’s one day and month prior valuation Payment Terms:  100% cash Oracle Business Description Oracle Corporation is an enterprise software company that

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M&A Deal Volume and Spending: All Industry Sectors

The following article is from Software Equity Group’s 2011 Q3 Software Equity Industry Report.  A complimentary copy of the quarterly report can be downloaded here: https://softwareequity.com/research_reports.aspx Globally, the third quarter’s 12,142 M&A transactions across all industry sectors eclipsed the previous post recession peak of 11,722 transactions set in 1Q11.  3Q11’s tally

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Software M&A Valuations

...one-third of all software/SaaS M&A transactions with ascertainable exit multiples had an EV/Revenue multiple of 3.0x or greater. This excerpt is from our complimentary Q3 2012 Software Industry Financial Report which can be downloaded here:  https://softwareequity.com/research_reports.aspx The software industry’s median exit multiple was 2.3x TTM revenue in 3Q12, up sharply

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Software M&A Valuations By Vertical and Horizontal Markets

Another important determinant of exit valuation is the seller’s target market focus and related domain expertise.  We analyzed 3Q11’s median software M&A multiple horizontally and vertically, segregating software company sellers with vertical market solutions (e.g. retail, financial services, telecom, manufacturing, etc.) from sellers with horizontal software solutions (infrastructure, enterprise applications,

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2Q11 SaaS M&A Transactions

The following article is from Software Equity Group’s 2011 Q2 Software Equity Industry Report.  A complimentary copy of the quarterly report can be downloaded here: https://softwareequity.com/research_reports.aspx In 2Q11, 45 SaaS companies were acquired, compared to 39 in 1Q11 and 26 SaaS acquisitions in 4Q10.  The growing number of SaaS acquisitions is

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Software M&A Valuations – Q2 2011

The following article is from Software Equity Group’s 2011 Q2 Software Equity Industry Report.  A complimentary copy of the quarterly report can be downloaded here: https://softwareequity.com/research_reports.aspx The software industry’s benchmark median exit valuation grew to a median multiple of 2.7x TTM revenue in 2Q11 from 2.3x TTM revenue in 1Q10 (Figure

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1Q11 SaaS M&A Transactions

This excerpt is from our complimentary Q1 2011 Software Industry Equity Report which can be downloaded here:  https://softwareequity.com/research_reports.aspx In 1Q11, 39 SaaS companies were acquired, compared to 26 SaaS acquisitions in 4Q10 and 10 in 1Q10.  The spike in SaaS acquisitions demonstrates buyers are beginning to resonate with recent IT spending surveys

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Software M&A Deal Volume and Spending

The following excerpt is from Software Equity Group's 2010 Software Industry Equity Report. Software M&A transactions accounted for 11.7% of all U.S. M&A activity in 2010, down from 13.3% in 2009. There were 1,586 mergers and acquisitions worth $51.9 billion in the U.S. Software sector in 2010, compared to 1,329

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The Software Buyer Mindset Has Changed

An editorial excerpt from Software Equity Group's 3Q10 quarterly report, written by our Founder & Managing Director, Ken Bender.  You can download the complimentary quarterly report by visiting our website: https://softwareequity.com/research_quarterly_reports.aspx We’re told the reason many of our readers consistently download our monthly and quarterly reports is they’re the one

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