As we get busier and busier with exit work at SurePath, I thought I’d share some of the data that we track. We work primarily with SaaS, e-commerce and marketplace companies. But we track activity across the entire software spectrum.
February was another month filled with mainly modest software exits in Canada. Highlights:
- 14 deals announced
- 4 deals had a disclosed value. The highest disclosed value was $1.4M.
- O of the companies were in Toronto, 3 in Montreal, the rest were distributed
- 2 of the 14 companies were VC-backed (Nakina Systems and Talent Buddy)
- 1/3 of the buyers were Canadian. One was from the UK. The rest were American
- 1/2 of the buyers were public
- Median time to exit: 4.5 years
- Shortest time to exit: 1 year
- Longest time to exit: 56 years!
- Most of the buyers were strategic. 1 buyer was a private equity firm. 1 was a management buyout
What we saw in February is pretty typical. Most of the press covers VC and venture-backed companies. But this is actually a small minority of the software universe. So, it comes as no surprise that most of the deals were not VC-backed. Neither of the VC-backed exits appears to have been a home run.
Most of the time when there is no disclosed value, it means the deal was small. Sometimes, it just means that the buyer was so large that this deal is just not significant relative to their size.
The fact that half the deals were with private buyers confirms that these deals were likely modest. Most private companies don’t have the resources to fund big acquisitions.
I will report on these each month. If you’re interested in seeing the underlying data, I keep it here.