Martin Wolf News

March 6, 2012
martinwolf Releases New Report   
Top 10 SaaS Companies of 2011   


martinwolf has published a new report on SaaS company valuation trends for 2011 based on the MW IT Index®, the first-ever Index measuring enterprise value of technology services companies. The report, entitled The martinwolf Report on The Top 10 SaaS Companies of 2011, reveals two key findings:   

  • All Index companies in the SaaS category experienced accelerated growth in 2011 that led to a 163% premium in revenue valuation multiple based on 12 months trailing revenue over traditional software companies. Chart with Pen
  • Median enterprise value for the top 10 SaaS companies was more than 2x that of the second 10 -- 7.4x 12 months trailing revenue compared to 3.2x. This split creates a new class of SaaS companies - "leaders among leaders."

The report further concludes that while growth for the SaaS category will continue to outpace that of traditional software for the next 12-24 months, individual companies' growth rates and enterprise values will vary as the market matures and companies segment and specialize.

Another factor influencing SaaS valuations is the battle for supremacy in SaaS among the largest enterprise software players, especially IBM, Oracle and SAP - all of whom made key acquisitions in 4Q2011 - which has put enormous pressure on the enterprise value of the de facto market leader,

In a March 5, 2012 article in Forbes on the release of the report, Marty Wolf, Founder and President of
martinwolf said, "What's the alternative for these slow moving legacy companies? If you look ahead at the business models they have of maintenance, licenses, services - that business model is changing. It's being disrupted. They need to change accordingly."     


martinwolf expects accelerated growth in the SaaS category to continue for the next 12-24 months. Said Wolf, "Recent acquisitions in the SaaS space send a clear message for sellers: Being the first company to sell in any specialized segment of SaaS matters because the second company usually sells for half the price of the first one. In other words, if you snooze, you lose."


For a PDF of the complete report, visit here.


To learn more about martinwolf contact Tim Mueller at  

About martinwolf    


Based in Silicon Valley, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit


December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf | M&A Advisors. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   


September 30, 2011

SPS, a leading Unified Communications Provider, announced that Court Square Partners has made an investment in the company. martinwolf advised SPS in this transaction. SPS is a premier unified communication services integrator, ranked 131 on the 2011 VAR 500 list with 2010 sales of $143 million. Court Square is a $4B+ New York-based PE Group, with more than 150 lifetime investments.  

Please click here to view the announcement. 


September 20, 2011  

Accel-KKR, a technology-focused private equity investment firm, announced that it had taken a majority stake in Infinisource. Infinisource is a leading benefits administration technology and services company. martinwolf advised the seller in this transaction.  

Please click here to



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