B2B SaaS Marketplace — Business Valuation Multiple

Overview

A B2B SaaS marketplace is an online platform that connects businesses with suppliers or service providers, while also providing software tools to help users manage purchasing, transactions or other business processes. For example, a platform might allow construction companies to find and purchase from approved equipment suppliers, while also providing software to manage orders, suppliers and spending. B2B SaaS marketplaces typically trade at 6×–14× EBITDA. Businesses with a large and active customer and supplier base can attract higher valuations, particularly where revenue combines recurring software subscriptions with fees or commissions from transactions made through the platform. Platforms that become embedded in customers' day-to-day operations can also benefit from strong customer retention and valuable transaction data. Key risks include difficulty attracting and retaining enough buyers and sellers, competition from larger software and marketplace providers, pressure on transaction fees, and customers choosing to deal directly with suppliers outside the platform.