Strong SaaS valuations are driven in large part by the operational and sales efficiency of the SaaS Model. Those companies and management teams that understand and track SaaS metrics not only operate more efficiently, but also receive premium valuations in M&A transactions and capital raises.
Fairmount Partners tracks more than 100 public SaaS companies, as well as the hundreds of SaaS M&A transactions that are completed every year, and we research at depth the drivers of value. Currently, public SaaS companies are trading at record levels, averaging 16.8x last twelve months (“LTM”) revenue, with ‘Rule of 40’ public SaaS companies averaging 30x LTM revenue.
In the first session of our Trends in Technology Webinar Series, we will be joined by three SaaS experts with hands-on experience as we share the metrics that leading SaaS companies track and why, what we can learn from these metrics, and how performance against those metrics drives strategic value. We will also share direct experiences with companies that have achieved extraordinary valuations.