Software Equity Group

Is your software platform ready for maximum growth and value? We regularly connect with software leaders and find a common goal: boosting company value. Whether your technology needs updating or is considered cutting-edge, there are always opportunities to enhance valuation and growth potential. Join us and KMS Technology for our webinar, "𝗛𝗼𝘄 𝘁𝗼 𝗙𝘂𝘁𝘂𝗿𝗲-𝗣𝗿𝗼𝗼𝗳 𝗬𝗼𝘂𝗿 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝗳𝗼𝗿 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗿 𝗚𝗿𝗼𝘄𝘁𝗵," on 𝗪𝗲𝗱𝗻𝗲𝘀𝗱𝗮𝘆, 𝗔𝘂𝗴𝘂𝘀𝘁 𝟮𝟴𝘁𝗵, 𝗮𝘁 𝟵 𝗔𝗠 𝗣𝗧 / 𝟭𝟮 𝗣𝗠 𝗘𝗧. Gain insights on best practices to create a scalable, efficient, and future-ready platform. 𝗖𝗹𝗶𝗰𝗸 𝗵𝗲𝗿𝗲 𝘁𝗼 𝗿𝗲𝗴𝗶𝘀𝘁𝗲𝗿: https://lnkd.in/eRuHrS84 #Webinar #SaaSGrowth #MnA

𝗛𝗮𝗽𝗽𝘆 𝗪𝗼𝗺𝗲𝗻'𝘀 𝗘𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗗𝗮𝘆! We want to take this opportunity to spotlight the incredible women at Software Equity Group and those in the SaaS industry as a whole. Your leadership, innovation, and dedication continue to drive transformative change in our industry. At Software Equity Group, we are proud to support and celebrate the achievements of women who are breaking barriers, setting new standards, and leading the way in SaaS. Your contributions are not only shaping the future of technology but also inspiring the next generation of women in tech. Let's continue to champion equality, diversity, and inclusion every day. Women in SaaS Blog: https://lnkd.in/epbAGtm8 #WomensEqualityDay #WomenInSaaS #DiversityInTech

Hear what Alex Gile, Co-Founder of Nexternal Solutions, Inc., has to say about how SEG played a crucial role in opening conversations with interested parties. "Working with an advisor gets you a lot more opportunities that you would otherwise not have. We were able to give demos to some big-name software companies and get them interested in our company. I'm quite confident, had I done everything on my own, that wouldn't have been the case." - 𝗔𝗹𝗲𝘅 𝗚𝗶𝗹𝗲, 𝗖𝗼-𝗙𝗼𝘂𝗻𝗱𝗲𝗿, 𝗡𝗲𝘅𝘁𝗲𝗿𝗻𝗮𝗹 See the rest of Alex's journey with SEG here: https://lnkd.in/gmdG9FjU #SaaS #MnA #PrivateEquity

To all my SaaS founders, CTOs and CPOs - check out the webinar I am participating in next week with Software Equity Group. We will cover the importance of examining and future-proofing your tech/product to drive better business today AND get max value for your org in a future possible M&A event. We will cover best practices, technology advice and other general tips from Jeff Scott of KMS Technology, Inc. If you are responsible for your SaaS technology, this is very worthy of your time! https://lnkd.in/eTb3458s

Software solutions evolve daily. So how is your company staying competitive? As tech leaders, it's common to grow your platform in response to immediate business needs. This approach is natural, often successful, and can drive impressive growth. However, as your company scales, you will inevitably hit limitations if your technology isn't future-proofed. Preparing your platform for the future is essential—not just for better retention, better sales, easier deployments, but for securing investment or a successful exit down the line. It’s a win-win for all parties. Discover how to align these in our upcoming webinar, “𝗛𝗼𝘄 𝘁𝗼 𝗙𝘂𝘁𝘂𝗿𝗲-𝗣𝗿𝗼𝗼𝗳 𝗬𝗼𝘂𝗿 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝗳𝗼𝗿 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗿 𝗚𝗿𝗼𝘄𝘁𝗵.” REGISTER HERE: https://lnkd.in/eRuHrS84 𝗗𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻 𝗧𝗼𝗽𝗶𝗰𝘀: - Foundational strategies to foster long-term business growth - Product development recommendations and the importance of your people and processes - Positioning your software for favorable M&A outcomes, including buyer preferences - Plus more actionable guidance DATE: 𝗪𝗲𝗱𝗻𝗲𝘀𝗱𝗮𝘆, 𝗔𝘂𝗴𝘂𝘀𝘁 𝟮𝟴𝘁𝗵 𝗮𝘁 𝟵𝗔𝗠 𝗣𝗧 / 𝟭𝟮𝗣𝗠 𝗘𝗧

Curious if your software company is ready to go to market? Or what areas your company is thriving vs. lacking? Our new 𝗜𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗦𝗘𝗚 𝗦𝗮𝗮𝗦 𝗦𝗰𝗼𝗿𝗲𝗰𝗮𝗿𝗱 can show you. A calculating tool built upon our proprietary framework allows you to play with your company’s data (which is never saved) to instantly see how it stacks up against buyer preferences and more. Take a moment to evaluate your key financial metrics and operational readiness and gain real-time insights into your company’s valuation potential. 𝗥𝗲𝗮𝗱𝘆 𝘁𝗼 𝘀𝗲𝗲 𝗵𝗼𝘄 𝘆𝗼𝘂 𝗺𝗲𝗮𝘀𝘂𝗿𝗲 𝘂𝗽? https://lnkd.in/gr7_XEMN 𝗚𝗿𝗼𝘄𝘁𝗵 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 Software advancements are creating abundant growth and M&A opportunities. To assist in navigating these, we offer a complimentary Strategic Assessment of your company. Please reach out if your company meets the following criteria for a liquidity event: 𝗠𝗶𝘀𝘀𝗶𝗼𝗻-𝗖𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗦𝗮𝗮𝗦 / 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗚𝗥𝗥: >90% 𝗔𝗥𝗥: >$5M+ 𝗥𝘂𝗹𝗲 𝗼𝗳 𝟰𝟬: >40% #SaaSScorecard #IndustryInsights #SaaS

SEG is hiring an Analyst for our Business Development team. This is an entry-level position with an opportunity to gain hands-on experience team working at the intersection of strategy, finance & technology. If joining a quickly growing boutique investment bank and working in a critical capacity on the front end of the client & transaction journey sounds appealing to you, take a look at the link: https://lnkd.in/ec6C5dZj

𝗝𝘂𝗹𝘆 𝗦𝗮𝗮𝗦 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: 𝗦𝗮𝗮𝗦 𝗠&𝗔 𝗮𝗻𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 𝗧𝗿𝗲𝗻𝗱𝘀 As we move through August, we're anticipating an increase in SaaS M&A activity for the remainder of 2024. Conversations with buyers, investors, and founders, alongside expected interest rate cuts, suggest a positive shift in M&A volume over the next 12 months. 𝗦𝗮𝗮𝗦 𝗠&𝗔 𝗠𝗮𝗿𝗸𝗲𝘁 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: • July saw 167 SaaS M&A deals—a ~9% increase from June—keeping 2024 on pace for nearly 2,000 deals. This would make 2024 one of the top three years on record for SaaS M&A. • With expected interest rate cuts due to cooling inflation and a softening labor market, we anticipate a further uptick in M&A activity over the coming months. 𝗦𝗘𝗚 𝗦𝗮𝗮𝗦 𝗜𝗻𝗱𝗲𝘅𝗧𝗠 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: • While the SEG SaaS Index is down 7.8% year-to-date, it has rebounded from May lows. Companies like Toast, SAP, and Oracle have seen their stock prices rise over 25% year-to-date, highlighting the potential in both public and private markets. • Expected interest rate cuts could drive increased investor interest in small-cap stocks, further boosting the Index. 𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝗦𝗘𝗚 𝗱𝗼 𝘁𝗼 𝗸𝗲𝗲𝗽 𝘆𝗼𝘂 𝗮𝗵𝗲𝗮𝗱 𝗶𝗻 𝗦𝗮𝗮𝗦? At SEG, we conduct in-depth research and maintain ongoing conversations with buyers, investors, and founders to understand the dynamics of the SaaS market. We monitor key indicators through our SaaS M&A Deal Database and the SEG SaaS Index™, allowing us to track critical trends and provide actionable insights to our clients and partners. This rigorous approach ensures that we stay at the forefront of the SaaS industry, guiding you with the latest market intelligence. Are you considering a transaction? SEG’s insights can help you time your exit and navigate the market dynamics. Reach out to our M&A experts to learn more.  Contact us here: https://lnkd.in/gFm3MPTh

When closing a deal, the difference between targeted net working capital and actual net working capital can drastically affect the purchasing price. As a seller, what you make off the sale is directly tied to NWC making it a crucial variable for you to understand. In mergers and acquisitions, calculating NWC and determining a normalized level can be more nuanced than it seems. 𝗪𝗵𝘆 𝗡𝗪𝗖 𝗠𝗮𝘁𝘁𝗲𝗿𝘀: • Buyers' Interpretations: Prospective buyers often have their own views on NWC, which can lead to intense negotiations. These discussions may delay the closing or impact the final deal value. • Purchase Price Adjustments: NWC plays a pivotal role in purchase price adjustments, directly affecting your take-home proceeds. • Smooth Post-Transaction Operations: Proper NWC management ensures smoother transitions and ongoing operations post-acquisition. Understanding what NWC might or might not include and how an M&A advisor can assist you in negotiating favorable terms can maximize your deal’s value. 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗯𝗹𝗼𝗴 𝗵𝗲𝗿𝗲: https://lnkd.in/gMpZ94W3 𝗚𝗿𝗼𝘄𝘁𝗵 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 Software advancements are creating abundant growth and M&A opportunities. To assist in navigating these, we offer a complimentary Strategic Assessment of your company. Please reach out if your company meets the following criteria for a liquidity event: 𝗠𝗶𝘀𝘀𝗶𝗼𝗻-𝗖𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗦𝗮𝗮𝗦 / 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗚𝗥𝗥: >90% 𝗔𝗥𝗥: >$5M+ 𝗥𝘂𝗹𝗲 𝗼𝗳 𝟰𝟬: >40% https://lnkd.in/eaAbw_-n #MergersAndAcquisitions #NetWorkingCapital #IndustryInsights

According to the latest SaaS M&A data, in 2Q multiples increased for the first time in two years. SEG Principal, Austin Hammer, in our recently released quarterly report, discussing the variables to watch surrounding this increase and how it signals some encouraging market trends. With possible interest rate cuts on the horizon, both SaaS M&A and public markets stand to benefit significantly." Uncover the latest trends, insights, and strategic opportunities in the SaaS sector with our comprehensive 𝟮𝗤𝟮𝟰 𝗦𝗮𝗮𝗦 𝗠&𝗔 𝗮𝗻𝗱 𝗣𝘂𝗯𝗹𝗶𝗰 𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗲𝗽𝗼𝗿𝘁. 𝗞𝗲𝘆 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: - Active PE Investors and Strategic Buyers are on the hunt for high-quality SaaS businesses that demonstrate durability and sustainability. - Publicly traded SaaS companies with solid fundamentals are enjoying rising stock prices and strong valuations. 𝗧𝗼𝗽 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝗢𝘂𝗿 𝗥𝗲𝗽𝗼𝗿𝘁: - SaaS M&A EV/TTM Revenue Multiple: This quarter marks the first increase in SaaS M&A multiples since 1Q22, with in-quarter medians and averages at 4.4x and 5.7x, respectively. - EV/TTM Revenue Multiple for High Net Retention Companies: Companies with a Net Retention Rate over 130% are achieving a 10.0x multiple, a 75% premium to the broader index median. - Top Quartile Increase in SEG SaaS Index: The top quartile of the index by stock price saw an average increase of 24% YTD. Our data goes beyond numbers—it reveals your company's potential. Leveraging our research expertise, turn these insights into your strategic edge. With detailed analysis of stock and financial data from over 120 publicly traded SaaS companies and hundreds of SaaS M&A transactions, our SEG Research Reports reveal the trends and pivotal moments shaping the industry's trajectory into the second half of 2024. 𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝘁𝗵𝗲 𝗟𝗮𝘁𝗲𝘀𝘁 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗥𝗲𝗽𝗼𝗿𝘁 𝗳𝗿𝗼𝗺 𝗦𝗘𝗚: https://lnkd.in/g2WyC4wE 𝗚𝗿𝗼𝘄𝘁𝗵 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 Software advancements are creating abundant growth and M&A opportunities. To assist in navigating these, we offer a complementary Strategic Assessment of your company. Please reach out if your company meets the following criteria for a liquidity event: 𝗠𝗶𝘀𝘀𝗶𝗼𝗻-𝗖𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗦𝗮𝗮𝗦 / 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗚𝗥𝗥: >90% 𝗔𝗥𝗥: >$5M+ 𝗥𝘂𝗹𝗲 𝗼𝗳 𝟰𝟬: >40% 𝗥𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝘁𝗼 𝘂𝘀 𝗵𝗲𝗿𝗲: https://lnkd.in/gnMNyYyt #SaaS #MnA #MarketReport #QuarterlyReport