Software industry public stock market and M&A valuations reached record peaks yet again in 2019. This was led by investor and buyer interest in publicly traded SaaS companies (8.2x EV/Revenue) and SaaS M&A targets (4.9x EV/Revenue). M&A deal activity also reached record levels in 2019, as SaaS M&A volume grew 27% during the year.
"As the SaaS industry continues to become more sophisticated, operators and investors are looking more closely at performance-driving metrics," said David Spitz, managing director of KBCM's Technology Group and primary author of the survey.
Contributing factors that have led to a shift in investor sentiment and an uneasy market, including various geopolitical issues (i.e., tariff wars with China, slowing of foreign markets in Europe, Japan, and China), events in Washington (i.e., the government shutdown), and the Fed’s outlook and activities.
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