Software as a Service (“SaaS”) continues to grow at a rapid rate, with M&A activity picking up speed through the first half of 2019. Capital raised reached an all time high in 2018 and 2019 is already on track to exceed previous years, in part fueled by increases in median valuations and deal sizes. Median deal size for the year so far has increased 60% from the 2018 median, increasing from $3.6 million to $5.8 million. Median post valuation figures have followed suit, increasing 94% from $25 million to $49 million.
Revenue multiples had continued growth as well, with the median EV/Revenue multiple rising to 7.2x from 4.2x in the first quarter, and well above the 12-month average of 4.8x.
To review the full report please download, “SaaS M&A Overview Summer 2019”