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Business Consulting firm Frankfurt Partners (www.frankfurtpartners.de) released the fourth edition of its biannual Software as a Service (SaaS) Valuation and Metric Report.
The report seeks to assess the value of SaaS providers against the more traditional software companies. The report includes extensive benchmarking data about the SaaS Market and its Players. It is an invaluable resource for software companies as well as for investors who are looking to invest in the SaaS space.
Reports key findings:
-SaaS offers an attractive business model and generates a higher cash flow then the traditional license model.
-SaaS providers require around 40-60% more capital before they achieve a positive cash flow.
-M&A valuations have generally increased from an average of 3.4 times revenue in 2009 to 5.8 times in 2010.
-Successful pure play SaaS providers are valued much higher then companies that still have traditional business models.
Key Topics Covered:
-Company Funding and Profitability
-SaaS Company Valuations
-SaaS M&A Deals
-Key Operating Figures