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© Software Equity Group, LLC 2013
Kris Beible, Director of Business Development
Software Equity Group, LLC
858 509-2800
...
2
© Software Equity Group, LLC 2013
The information contained in this Report is obtained from sources we believe to
be rel...
3
© Software Equity Group, LLC 2013
Real Estate Technology Ecosystem (Abbreviated)
Company
Acquired
Public
Company
Constru...
4
© Software Equity Group, LLC 2013
Public Companies: Real Estate Technology
Top 5: EV/Revenue
0.0x
10.0x
20.0x
30.0x
Medi...
5
© Software Equity Group, LLC 2013
M&A: Real Estate Technology
M&A Volume by Category: Annual
Aggregate M&A Volume: Annua...
6
© Software Equity Group, LLC 2013
Most Acquisitive Companies (1/2009 – Present)
Top 3 Most Active Buyers
Yardi, 13
RealP...
7
© Software Equity Group, LLC 2013
Top 10 Real Estate Technology M&A by Enterprise Value (EV)
Buyer TypeBuyer TargetDate ...
8
© Software Equity Group, LLC 2013
Top 10 Real Estate Technology M&A by EV/Revenue
Buyer TypeBuyer TargetDate EV (mm) EV/...
9
© Software Equity Group, LLC 2013
Summary
• Broad ecosystem of players
• Sector public companies currently performing we...
10
© Software Equity Group, LLC 2013
Brief Overview:
Software Equity Group
11
© Software Equity Group, LLC 2013
• Twenty-one year, exclusive focus on software
advisory services to lower middle mark...
12
© Software Equity Group, LLC 2013
Extensive Global Reach
SEG Research Distribution
Current Sell-side Representation
Rec...
13
© Software Equity Group, LLC 2013
has received a growth equity
investment from
Leaders in Real Estate Technology M&A
14
© Software Equity Group, LLC 2013
To discuss the real estate technology ecosystem, M&A
transactions and/or your busines...
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Brief real estate technology market update & ecosystem

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Transcript of "Brief real estate technology market update & ecosystem"

  1. 1. 1 © Software Equity Group, LLC 2013 Kris Beible, Director of Business Development Software Equity Group, LLC 858 509-2800 www.softwareequity.com Brief Real Estate Technology Market Update & Ecosystem
  2. 2. 2 © Software Equity Group, LLC 2013 The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ. This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C. Disclaimer
  3. 3. 3 © Software Equity Group, LLC 2013 Real Estate Technology Ecosystem (Abbreviated) Company Acquired Public Company Construction Payments Home Services Lead Gen Data/Information Services Broker CRM/Marketing Mortgage Orig. / FinanceProperty Search/Lead Gen Property Mgmt Investment Mgmt Commercial Construction Residential ConstructionFacilities Design/AECIWMS & Facilities Mgmt
  4. 4. 4 © Software Equity Group, LLC 2013 Public Companies: Real Estate Technology Top 5: EV/Revenue 0.0x 10.0x 20.0x 30.0x Median EV/Rev: 11.3x Median Growth Rate: 71.3% Company Angie's List, Inc. CoStar Group Textura Corp. Trulia, Inc. Zillow, Inc. TTM Rev Growth 70.9% 47.8% 106.2% 87.8% 71.3% EV/Rev 7.7x 10.1x 24.0x 11.3x 14.7x *Public Company data sourced July 2013: CapitalIQ Company Ticker Category Market Cap. (mm) Enteprise Value (mm) LTM Revenue LTM EBITDA LTM Revenue Growth LTM Gross Margin LTM EBITDA Margin EV/ Rev EV/ EBITDA Angie's List, Inc. (Nasdaq:ANGI) Home Services Lead Gen $1,404.4 $1,356.3 $176.9 -$43.0 70.9% 72.3% - 7.7x - Autodesk, Inc. (Nasdaq:ADSK) Facilities Design / AEC $7,957.9 $6,615.8 $2,294.0 $469.3 0.8% 89.2% 20.5% 2.9x 14.1x Aveva Group plc (LSE:AVV) Facilities Design / AEC $2,568.1 $2,280.0 $333.4 $104.3 12.4% 92.7% 31.3% 6.8x 21.9x CoreLogic, Inc. (NYSE:CLGX) Data/Information Services $2,484.2 $3,130.5 $1,606.7 $340.6 16.4% 46.2% 21.2% 1.9x 8.3x CoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2x Ellie Mae, Inc. (NYSE:ELLI) Mortgage Orignation / Finance $648.3 $587.8 $111.8 $27.8 69.9% 77.2% 24.8% 5.3x 21.2x Move, Inc. (Nasdaq:MOVE) Property Search / Lead Gen $516.7 $486.5 $205.7 $15.3 8.1% 78.4% 7.4% 2.4x 28.8x Nemetschek AG (XTRA:NEM) Facilities Design / AEC $611.0 $543.1 $233.7 $55.0 6.6% 52.1% 23.5% 2.3x 9.9x RealPage, Inc. (Nasdaq:RP) Property Management $1,532.7 $1,510.0 $336.7 $53.8 22.5% 60.4% 16.0% 4.5x 28.1x Textura Corporation (NYSE:TXTR) Commercial Construction $641.1 $655.3 $27.3 -$15.1 106.2% 75.0% - 24.0x - Trulia, Inc. (NYSE:TRLA) Property Search / Lead Gen $1,104.8 $900.4 $79.9 -$4.2 87.8% 86.3% - 11.3x - Zillow , Inc. (Nasdaq:Z) Property Search / Lead Gen $2,138.2 $1,959.2 $133.0 $8.1 71.3% 88.9% 6.1% 14.7x 241.3x zipRealty Inc. (Nasdaq:ZIPR) Broker CRM/Marketing $65.5 $54.5 $73.1 -$0.3 -10.2% 43.9% - 0.7x - High: $7,957.9 $6,615.8 $2,294.0 $469.3 106.2% 92.7% 31.3% 24.0x 241.3x Low: $65.5 $54.5 $27.3 -$43.0 -10.2% 43.9% 6.1% 0.7x 8.3x Average: $1,966.6 $1,843.9 $461.3 $82.4 39.3% 71.6% 18.5% 7.3x 48.8x Median: $1,404.4 $1,356.3 $205.7 $27.8 22.5% 75.0% 20.5% 5.3x 21.9x
  5. 5. 5 © Software Equity Group, LLC 2013 M&A: Real Estate Technology M&A Volume by Category: Annual Aggregate M&A Volume: Annual 14 25 48 42 43 2009 2010 2011 2012 TTM July 2013 #ofRM&ATransactions Aggregate M&A Volume: Quarter 2 5 10 6 10 2 5 10 13 10 2 7 14 12 8 8 14 11 2009 2010 2011 2012 2013 #ofM&ATransactions Q1 Q2 Q3 Q4 4 1 0 1 1 0 2 0 1 0 0 3 6 2 1 0 1 2 2 1 3 1 4 2 7 1 1 1 9 2 3 1 7 1 7 8 9 1 0 1 5 1 7 0 5 2 6 5 4 2 0 0 5 3 9 3 4 1 8 4 Property Management Data/Information Services Payments Investment Management IWMS & Facilities Management Facilities Design / AEC Commercial Construction Residential Construction Property Search / Lead Gen Home Services Lead Gen Broker CRM/Marketing Mortgage Orig. / Finance #ofM&ATransactions 2009 2010 2011 2012 TTM July 2013 *Data sourced July 2013: CapitalIQ
  6. 6. 6 © Software Equity Group, LLC 2013 Most Acquisitive Companies (1/2009 – Present) Top 3 Most Active Buyers Yardi, 13 RealPage, 10 Zillow, 6 HomeAway, 5 Accruent, 4 CoreLogic, 4 MarketLeader , 4 Reply!, 4 Autodesk, 3 CoStar Group, 3 Ellie Mae, 3 MRI S/W, 3 Textura, 3 Trimble, 3 Viewpoint Construction S/W, 3 # of Acquisitions Level One Evergreen Solutions Energy Billing Systems Property Research Partners Multifamily Services Group Peak Insurance Advisors DIY Real Estate Solutions *Data sourced July 2013: CapitalIQ
  7. 7. 7 © Software Equity Group, LLC 2013 Top 10 Real Estate Technology M&A by Enterprise Value (EV) Buyer TypeBuyer TargetDate EV (mm) EV/Rev EV/ EBTIDA 4/27/2011 $654.2 8.2x 30.3x Public Public 5/8/2013 $314.3 6.6x - Public Public 1/11/2011 $270.0 4.7x 11.8x Public Public 3/24/2011 $231.8 6.1x 11.5x Public Private 3/22/2012 $145.0 - - Private Public Subsidiary 4/12/2011 $140.5 5.6x 20.8x Public Private 12/1/2009 $128.0 1.7x - Private Public Subsidiary 8/22/2011 $74.9 4.5x - Public Private 11/3/2010 Level One, Inc. $62.0 2.7x - Public Private 3/15/2011 $51.0 - - Public Private Seller Type *Data sourced July 2013: CapitalIQ
  8. 8. 8 © Software Equity Group, LLC 2013 Top 10 Real Estate Technology M&A by EV/Revenue Buyer TypeBuyer TargetDate EV (mm) EV/Rev EV/ EBITDA Seller Type 5/2/2012 $37.4 102.4x - Public Private 7/29/2011 $14.8 65.1x - Public Private 7/23/2012 $15.5 10.3x - Public Private 4/27/2011 $654.2 8.2x 30.3x Public Public 5/8/2013 $314.3 6.6x - Public Public 3/24/2011 $231.8 6.1x 11.5x Public Private 4/12/2011 $140.5 5.6 20.8x Public Private 1/11/2011 $270.0 4.7x 11.8x Public Public 8/22/2011 $74.9 4.5x - Public Private 8/15/2011 $25.2 3.2x - Public Private *Data sourced July 2013: CapitalIQ
  9. 9. 9 © Software Equity Group, LLC 2013 Summary • Broad ecosystem of players • Sector public companies currently performing well & quite acquisitive • Strong post recession rebound in M&A volume • General sector buyer acquisition appetite high Top 5 M&A Volume: 2009 - Present 1. Property Management (30 deals) 2. Broker CRM/Marketing (25 deals) 3. Commercial Construction (23 deals) 4. IWMS & Facilities Management (21 deals) 5. Property Search / Lead Gen (20 deals) Top 5 M&A Volume: TTM 1. Commercial Construction (9 deals) 2. Broker CRM/Marketing (8 deals) 3. IWMS & Facilities Management (5 deals) 4. Property Management, Property Search / Lead Gen, Mortgage Orig. / Finance (4 deals)
  10. 10. 10 © Software Equity Group, LLC 2013 Brief Overview: Software Equity Group
  11. 11. 11 © Software Equity Group, LLC 2013 • Twenty-one year, exclusive focus on software advisory services to lower middle market (i.e., client revenue $5 - $50M) representing companies seeking: • Strategic exit • Growth capital • Buyout • Inorganic growth via acquisition • Fairness opinions and valuations • Board advisory services • Clients span virtually every technology, product category, delivery model and vertical market • Global presence providing advice and guidance to more than 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel • Strong cross-functional team leveraging transaction, operating, legal and engineering experience • Unparalleled software industry reputation, track record and industry research • Highly referenceable base of past clients and buyers / investors Leaders in Software & Technology Advisory Services Focus on Advice Multi-service Multi- Industry Focus on Software Advisory Boutiques Bulge Bracket Firms IPO Boutiques
  12. 12. 12 © Software Equity Group, LLC 2013 Extensive Global Reach SEG Research Distribution Current Sell-side Representation Recent Sell-side Representation • SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia • In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa • SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are distributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.
  13. 13. 13 © Software Equity Group, LLC 2013 has received a growth equity investment from Leaders in Real Estate Technology M&A
  14. 14. 14 © Software Equity Group, LLC 2013 To discuss the real estate technology ecosystem, M&A transactions and/or your business, please contact me at: P: 858.509.2800 Email: kbeible@softwareequity.com
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