With SaaS Valuations Returning to 2018 Levels, Is Now the Time to Buy?
Surprisingly, The Answer May Be No
11 min readOct 20, 2022
Baron Rothschild, an 18th-century British nobleman and member of the Rothschild banking family, is credited with saying that “the time to buy is when there’s blood in the streets.” In late 2022 it is clear that the SaaS market is in trouble. The Nasdaq is off over 34%. Median Enterprise Value/Revenue valuations are off 58% in comparison to their peak in 2021. Many companies might consider now to be a good time to jump into the M&A game. Experience has shown, however, that a well-reasoned M&A strategy is required for success
In this article we will talk about:
- 2022 SaaS Valuation Trends
- Can You Buy Your Way Out of a Problem?
- Acquisitions Can Be Transformative
- You Need an M&A Strategy
- Acquisition Types
- Acquisition Constraints
- Acquisition Currency
- Return Requirements
- Acquisition Styles
- The Borg
- The Hippies
- Knights in Shining Armor
