Frankfurt Partners Released its Newest SaaS Valuation and Metric Research Report
SaaS Companies and their M&A Activities are analysed

(firmenpresse) - Frankfurt am Main, 12.10.2010: Business Consulting firm Frankfurt Partners (www.frankfurtpartners.com) released the third edition of its biannual Software as a Service (SaaS) Valuation and Metric Report.
SaaS remains a relatively new business model but it has a great potential for growth. As of 2010, it is estimated to have reached less than 20% of its potential market.
The largest proportion of SaaS customers so far are SMEs and medium-sized companies with relatively little break-through into the enterprise market. However, the level of adoption by enterprises is starting to increase rabidly. By the end of 2010, 80% of U.S. organizations will use at least one SaaS-delivered application for business use.
"The M&A Activities have picked up in the last 12 month as a array of companies are seeking to capitalize on the rising demand for SaaS solutions and trying to position themselves as a strategic player in the SaaS market", says Rene Meister. "Given the attractive characteristics of SaaS companies from a financial perspective (i.e. strong growth, revenue visibility), it is not surprising that M&A activity for SaaS vendors has been strong."
This report includes extensive benchmarking data about the SaaS Market. It is an invaluable resource for metrics and benchmarks for running a business based on the SaaS business model.
Reports key findings:
-Although many more companies are entering the SaaS market, most of these are providing SaaS as an extension to their existing product line.
-With a total asset value of $2,460 million stated in its end 2009 balance sheet, Salesforce is more than three times the size of its nearest rival.
-SaaS providers require around 50-70% more capital than traditional software companies before they achieve a positive cash flow.
-Pure play SaaS providers are the most valuable out of 23 categories of software companies.
-Mergers and acquisition valuations have generally fallen from an average of 6.2 times revenue in 2007 to 5.3 times in 2010. Overall Deal sizes have been fallen too.
-Successful pure play SaaS providers such as Netsuite and Salesforce.com are valued much higher then companies that still have traditional business models.
Key Topics Covered:
-Overview Leading SaaS Providers
-SaaS Company Valuations
-SaaS M&A Deals
-Key Operating Figures
For more information about the report please contact us at SaaSReport(at)frankfurtpartners.com or visit our website at frankfurtpartners.com.
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Unternehmensinformation / Kurzprofil:
Frankfurt Partners (FP) is a German management consulting firm with its headquarter in Frankfurt. FP is advising small and medium-sized businesses in the areas of business consulting, strategy, organization, mergers and acquisitions and turnaround.
For more nformation about Frankfurt Partners please visit us at: www.frankfurtpartners.com
Frankfurt Partners
Kerstin Kaufmann
Bockenheimer Landstrasse 17
60325
Frankfurt
press(at)frankfurtpartners.com
+49 69 710 455 382
http://frankfurtpartners.com
Datum: 12.10.2010 - 13:41 Uhr
Sprache: Deutsch
News-ID 25752
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contact information:
Contact person: Rene Meister
Town:
FRANKFURT
Phone: +49 69 710 455 382
Kategorie:
Internet
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