Higher valuations for SaaS-companies

The increasing interest of companies in obtaining their software applications as cloud services lead to an ever-increasing number of sales by such SaaS providers. With over 130 concluded M&A transactions in the cloud environment worldwide, a new peak was reached in the last quarter. The pressure on traditional software companies present an additional a SaaS offer to their customers results in increased interest in acquiring SaaS specialists that already have a complete cloud solution in place and have been able to establish themselves in the market.

Due to these developments, evaluations of M&A transactions in this environment are significantly higher that those in the sale of conventional software product suppliers. The average turnover-transaction multiple of SaaS providers has been nearly twice as high throughout the past one and a half years. However, the buying lists also contain PaaS providers (Platform-as-a-Service) that tend to be taken over by the big IT companies, such as Oracle, CITRIX or Lenovo.
German SaaS providers should be as well prepared for the approach of an interested buyer as possible. “The pursuit of a strategy for the development of cloud specific assets must fundamentally be recommended. This includes the faster scalability, the elasticity of services, as well as standardised processes”, says Thomas Schröter, CEO of eventurecat and previously an IT entrepreneur himself.
Interested managers of SaaS companies are gladly provided with further results of the study by eventurecat free of charge.
(Contact: markus.barnickel@eventurecat.com).