Cascadia Capital 2022年基础设施软件市场更新

Infrastructure SoftwareMarket UpdateFebr uar y 2023 1 0 0 0 S E C O ND A V E N U ES U I TE 1 2 0 0S E A T T LE, WA 9 8 1 0 4 M E M B ER F I N R A / S I P C I.Executive SummaryII.Software Public Markets OverviewIII.Software M&A OverviewIV.Cascadia Capital OverviewV.Appendix A.Infrastructure Software M&A TransactionsB.Infrastructure Software Comparable Public CompaniesC.Software Spending TrendsD.Software Industry Trends Executive Summary Infrastructure Software has proven resilient despite cooling M&A market conditions 2022 Public Markets: Finally Stabilizing Following a 40%+ Decline from 2021 Peak •Public market Software multipleshavedeclined 43% from the 2021 peak, wiping out post-Covid gains1•PublicRule of 40Infrastructure Softwareon average trades at 110%+ premiumto non-Rule of 40, reflectingappetite forprofitable growth1 2022 M&A: Despite Sharp Declines from 2021, Activity Still Above Pre-Covid Levels 4•Uncertain macro conditions drove Software M&A volume and disclosed value down 27% and 68%, respectively, in H2 2022 vs.H1 2022 peak,yet still above pre-Covid levels•Despite significant declines in value and volume,Software multiples in H2 2022 were down 22% from H2 2021 peaks, but stillabove pre-Covid levels•Infrastructure Softwaremultiplesperformed significantly better than Application Software multiples in 2022, up 17% from 2021compared to down 27% for Application Software during the same period•Infrastructure Software’s8.3x 2022 median multiple was 57% higher vs. Software and 80% higher vs. Application Software•Mission critical sectorslike Security, Database & Data Mgmt. and IT Ops.drove 70%+ of 2022 Infrastructure Software M&Avolume1 2023 M&A Outlook: Infrastructure Software Faring Better Heading Into 2023 •H2 2022 downward M&A trends on value and volume likely to decelerate in 2023 as public markets begin to settle, sellers whochose a “wait and see” approach in 2022 adjust to the “new normal”, andPEs with dry powder of $788 billion2deploy capital•2023 valuation multiples should continue to adjust to the “new normal”and reach closer to pre-Covid levels, butInfrastructureSoftware’s growing premium to both Software and Application Software will likely persistas buyers search for the strongestcompanies in mission-critical industries like Security, Database & Data Mgmt. and IT Ops. Infrastructure Software Market Map Software Public MarketsOverview Public Market Software Returns Public markets stabilizing following sharp declines in H1 2022 Shifting market conditions have disproportionately impacted more innovative business models1 Public Market Software Valuations Public market software valuation declines more severe than private markets Public market Infrastructure Software trades at a premium to Application Software1 Infrastructure Software Sector Comps Higher growth sectors within Infrastructure Software command significant premiums Profitable Growth Valuation Paradigm Markets further reward companies growing profitably relative to “growth at all costs” Software M&A Overview Total Software M&A Summary Software M&A volume and valuations down in H2 2022, but still above pre-Covid levels Normalized Software valuations mayremain higherthan pre-Covid levels;despite tighter conditions, medianM&Avaluations settled 20% higherin 2022 vs.median M&A valuations in 20191 Over 4pp. of Fed rate increasesandsurging inflationpeaking at over 9%created economic uncertainty, givingacquirors pausewhile assessingimpact across the Software landscape2 Tighter market conditions droveM&Avolumes back to early 2021 levels,but composed of smaller M&A dealsat a median deal value of $45M in H22022 vs. $100M in H1 20211 Valuations trend towards pre-2021 levels M&A volumes regress to early 2021 levels Total Software M&A Size Trends Lower middle market (<$100M) activity stable compared to higher end of market in 2022 The$1B+ segment H1 vs. H2 2022median LTM revenue multipleincreased from 7.5x to 9.1x,highlightingacquiror pursuit ofhigh-quality assets of scale1 Demand for tuck-inacquisitions remains strong withserial acquirorslike Vismaincreasing YoY acquisition volumein 2022;acquiring 42 companies2 Decliningvaluations in the $100M to$1B segment from 7.9x to 5.0x largelyoccurred in H1 2022; this and the sub$100M segments wereessentially flatbetween H1 vs. H2 20221 Faring best,sub $100M segmentM&A volume only declined 11%in2022 vs. 2021, compared to a45%M&A volume decline for dealsgreater than $100M in deal value1 Valuations stable at low & high end of market $100M+ deal volume down the most Application Software M&A Summary Application Software multiples underperforming Total Software by 10% in 2022 Application Software M&A volumeshaveheld up slightly better, posting5pp. lessM&A volume decline from the H1 2022peak compared with broader SoftwareM&A volumes1 Despite Application SoftwareLTMrevenue multiples having returned topre-2020 levels;valuations have gainedpositive momentum in H2 2022,inflec