You can refer to the public data to help find your own valuation, but take note that the sale of private companies is usually heavily discounted compared to the big guns on the public market. It is possible that selling the company was part of your competitors strategic acquisition, which actually sells for the highest premium because a strategic buyer is always willing to pay extra to acquire that asset. Some financial investors hunt for deals on the public market (e.g. In 2022, after the buoyant days of the past decade, SaaS company valuations are falling and business models are being rewritten. Likewise, you are not aware of the buyers motivations. Companies that can better defend their revenue stream from competition earn higher multiples. By the time a company is valued at $1 billion, senior employees make up only 12% of the overall workforce. Keep in mind that most public SaaS companies are worth more than private SaaS companies since people can buy in anytime and everyone has the chance to purchase stock as against a select few in the private space. According to data from across all of Cartas 29,000+ cap table customers, involuntary terminations made up 29% of departures in May 2022 (the rest being employees leaving their jobs by choice). Having SaaS valuation data is essential for business owners, potential buyers, and your management team. We can calculate gross margin as (Revenue minus Cost of Goods Sold) / Revenue. SaaS Updated to note that the Microsoft investment closed in January. New talent hubs may emerge outside of major cities. (Companies of sufficient size may have office locations in multiple statesbut that was equally true in pre-pandemic years. Conducted in June, July and August, the 13th annual KeyBanc Capital Markets Private SaaS Survey offers a glimpse at whats behind that apparent resilience. There was an increase in SaaS valuations in 2020, which was the time when businesses started to make adjustments to cope with the pandemic due to the forced lockdowns. To calculate this SaaS valuation, you take:Total Revenue and minus (Operating expenses + Costs of Goods Sold) and then add Owner Compensation.

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