Software industry median deal multiples by company EBITDA

searcher profile

September 16, 2021

by a searcher from University of Pennsylvania - The Wharton School in New York, NY, USA

Where can I look this type of data up? (for free)

Lots of hullabaloo out there regarding SaaS multiples. I'm hearing anything from 5 - 20x. I want to see some actual data.

I looked at BVR but it didn't look like they segmented multiples by EBITDA size? - that's the level i want to drill down into

much obliged to anyone who can help with this!

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commentor profile
Reply by an intermediary
from University of Pennsylvania in Durham, NC, USA
^redacted‌ You can calculate multiples by EBITDA range using BVR/DealStats but it's not included in the free data on Searchfunder.com. GF Data Resources provides aggregate data by EBITDA (or enterprise value) range, but it's not free either. However, I'm not sure the data would show a high correlation by EBITDA size; the multiples are more likely to be correlated with revenue growth, industry/vertical niche, and other factors.
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Reply by an intermediary
from New York University in Menlo Park, CA, USA
Dan, I just sold a $4m ARR software company to Oracle back in Feb###-###-#### I'd say that for a strategic acquisition, the multiples can be based on revenue. The more strategic buyers you can attract, the more you can push up the offers and corresponding multiples.

If you can't generate strategic offers, then software is just a high gross margin business and the multiples will be based on EBITDA. Of the 13 offers we received on this opportunity, I'd say they clearly split into these 2 categories.
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