Founders Q4 2017 SaaS Industry Update

By: Zane Tarence

Founders SaaS Industry Update Newsletter - Q4 2017

Recently passed tax reform initiatives will have wide sweeping effects on all businesses, and our latest Q4 2017 SaaS Industry Update highlights some key changes that will impact SaaS businesses.  Within the newsletter, we focus on the legislative impact of changes in deductions on business interest and entertainment/meal expenses, along with the Alternative Minimum Tax repeal.

In addition to spotlighting recent transactions in the space, the newsletter also examines the recent historical trends in public company SaaS revenue multiples for companies in our SaaS Index.  You’ll see below that vertical SaaS businesses continue to trade at roughly a 20% premium to their horizontal counterparts, but that generally any movements up or down in their respective multiples are correlated with movement in the other groups’ average.

 

For more information on SaaS transactions, our spotlight articles and quotes from industry leaders, and additional detail on tax reform, please click here for our Q4 2017 Newsletter.

Founders Q4 2017 SaaS Industry Update

 

About Founders Advisors

Founders Advisors (Founders) is a merger, acquisition, & strategic advisory firm serving middle-market companies. Founders’ focus is on energy, SaaS/software, value-added distribution, industrial technology, internet, healthcare, and digital media companies located nationwide, as well as companies based in the Southeast across a variety of industries. Founders’ skilled professionals, proven expertise and process-based solutions help companies access growth capital, make acquisitions, and/or prepare for and execute liquidity events to achieve specific financial goals. In order to provide securities-related services discussed herein, certain principals of Founders are licensed with M & A Securities Group, Inc. or Founders M&A Advisory, LLC, both members of member FINRA & SiPC. M&A Securities Group and Founders are unaffiliated entities. Founders M&A Advisory is a wholly-owned subsidiary of Founders. For more information, please visit www.foundersib.com.