SaaS valuations: off the charts and staying that way

source: Gigaom.com

Legacy software companies get no respect — or market valuation — compared to Software-as-a-Service (SaaS) players. New research shows that over the past year, SaaS company valuations grew twice as much as valuations of legacy software companies rooted in the client-server world. And that SaaS valuation trend will continue for the next 12 to 24 months, according to new research from Martin Wolf M&A Advisors.

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Wolf’s numbers show that a select group of SaaS companies saw their values grow 313 percent from January 2009 to October 2011, compared to 154 percent growth for other software companies over the same period.

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“With SaaS, the more vertical the better,” Wolf said in interview.SaaS companies offering financial services, healthcare services or employee benefits outsourcing services, are all hot now, he added.

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Read all the article: http://gigaom.com/cloud/saas-valuations-off-the-charts-and-staying-that-way/