We are issuing this interim April report due to the dramatic decline and recovery in multiples over the last 3 months. We have added additional chart showing the SaaS multiples split by 75th, and 25th percentile, mean and median which illustrates the spread of SaaS performance. For this update the charts are just from 1 January 2019 to 30 April 2020.
- From the low point to 30 April, Median Revenue multiples for US Vertical and Europe recovered 70% of the loss, US SaaS and Horizontal 60%, and UK 50%.
- Many software sub-sectors are seen to be behaving in a resilient way to COVID-era trading. US Horizontal EBITDA multiples recovered to near pre-COVID levels.
- The SaaS chart shows how the 75th percentile revenue multiple was the biggest faller in Q1 at 3.9x to near the Mean, and now has recovered 2.5x of the loss to 9.7x. Quality is still rewarded with 75th percentile multiple almost 200% of the 25th percentile 5x, which is 1.9x below Median. However, both recovered the same 63% of their loss to 30 April