And foodservice companies are increasingly becoming a target. Valuation multiples (which help investors decide whether to enter or exit a stock) are affected by a companys perceived growth, risk and uncertainties, and investors willingness to pay. . Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. How Much Did Valuation Multiples for Software Companies Go Up By Post Covid in 2020? Loading my email didnt work. Learn how your comment data is processed. Valuation of businesses, assets and alternative investments for financial reporting, tax and other purposes. Kroll OnTrack Inc. or their affiliated businesses. Thanks John. Between August and February, the SCI lost nearly half a trillion dollars in value. Wages are up and continuing to rise. Could you kindly share the dataset, please? Comprehensive investment banking, corporate finance, restructuring and insolvency services to investors, asset managers, companies and lenders. Still, as one technological cycle ends, another begins. January 15, 2023 05:32 am EST. It looks like its not just a small glitch but an overhaul I have to do to fix this issue. Geography is also highly important in determining the market value of the business. Could you send me the data set please?ThanksTom. Stumbled across your website when looking for multiples data. We are pleased to launch the third edition of our Industry Multiples in Europe quarterly report. Strategic investors need a company to have big enough size to move the needle for its business. Then, we saw a huge pull-back for big tech companies at the end of 2022. It would also be useful to know where this data is coming from if you havent included that in the data set youre sending. /en/insights/publications/valuation/valuation-insights-first-quarter-2022/european-industry-market-multiples. Secondly, bigger software firms are less risky. Even more impressive was the growth in the first quartile: in the first half of 2022 investors paid for 25% best companies more than 50 times their annual earnings. At the end of February 2022, the median public SaaS valuation multiple had dropped 37% to 10.7x ARR. Globally, marketplaces are expected to generate $8.7 trillion of transactions by 2025. This ratio rose over the course of The performance in the 1.5 years is +25%. They were also the stocks to see the greatest decline post-peak Snowflake from 133x to 62x, Zoom from 54x to 11x, Coupa from 43x to 13x, and Fastly from 37x to 10x. It should be on your way to your email. Registered address: Spaces, Mappin House, 4 Winsley Street, London W1W 8HF. Strong performers will still have over-subscribed rounds at double-digit valuation multiples, while weaker companies will have a much harder time, and possibly not find financing at acceptable terms at all. Thanks Sandeep! Published on 15 November 2022, 09:32 America/New_York. Some financial investors hunt for deals on the public market (e.g. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. The European market in particular saw investment levels skyrocket by a whopping 131% from $2.9bn in 2020 to $6.7bn in 2021. My 40 year old M&A firm has traditionally represented manufacturing companies. At the end, investors are interested in the cash flow the company can generate in the future. It is real, it is high, and it will last at least this year. Healthcare stakeholders are increasingly joining efforts with HealthTech companies to improve and increase access to remote care. You can insert your email address in the field at the end of the article and it will be delivered to your inbox directly. Control your destiny with runway or even profitability. Thank you for reading and for your comment, Sylar! Tech, Trends and Valuation. Public market valuations, which are often seen as a precursor to private and smaller markets, are changing. Would be cool to see recent ones? Sign up for our newsletter below to stay current on the valuation trends. Interest rates are a major input in any valuation used to discount future cash flows. Ive set it up so that the data set sends directly to your email if you put your email below, it should arrive in your inbox! Investors required IRR vary by investors, the stage theyre investing in (early-stage deals tend to require higher IRR vs. later stage deals) and the industry naturally. 7.1 Market segments. Its more important than ever that if you go to raise equity, you do so intentionally, with a plan, for a specific reason, at your option. Thx and great work! 7 Market Segmentation by End-user. Eurozone growth is expected to be 3.1% in 2022, reflecting a stronger-than-expected second quarter in most eurozone economies, led by growth in tourism-dependent economies. 10 minute read. Four companies in the SCI were taken private in the six months between September and the end of August. There was a glitch, but it should be fixed now. The increase comes as companies seek a Are you seeing a lot of activity in manufacturing these days? There was a glitch I had to fix. Leveraging market research and Capstones proprietary data, we seek to provide business owners and market participants greater transparency into the pricing dynamics of completed merger and acquisition (M&A) sale processes in the middle market, defined as transactions under $500 million in enterprise value. WebApproach: Apply a Cashflow/Earnings Multiple. While it may take many years to reach the peak valuations observed in 2021, there will certainly be no shortage of interest in new technologies, so software will remain one of the most richly valued sectors. Dont get us wrong, its not necessarily bad to use GMV when talking about marketplace valuation. Since the smaller companies arent as well known as the mega tech companies, they performed fantastically as well but not as much as the large tech software companies. Our case study above is actually part of the answer. Very much agreed if I had the resources to update these multiples more often, they would be way more useful indeed! Hi Joe, I put your email in the field. Valuation. Our privacy policy describes how your data will be processed. Finerva is a trading name of Lydford Advisory Limited, a company registered in England and Wales, number 08655612. One probable catalyst is the rapid development of Artificial Intelligence technologies developed by OpenAI showed their power and usability for everyday applications, so a whole new generation of companies may be built on this and other new technologies. 21/09/2022. This cookie is used to store the language preference of the user. No need to go into much depth when it comes to expenses and cash flow as we will only look at projected Gross Profit here. While the sector was expanding before COVID-19, the pandemic has caused a critical acceleration toward digitalising systems, with HealthTech solutions booming. - Peak Business Valuation, THCH Fundamental Valuation Multiples TH International Limited, Decimation of SaaS Valuation Multiples [2022 Mid-Year], Ingersoll Rand Air Compressor R160i Manual Pdf. They grew it to 8m and just sold in late 2020 for 7 X sales. There are 2 reasons why GMV and Revenues arent easily comparable from one marketplace to another: Logically, when using a multiple valuation methodology, you should select the right set of comparable companies. Lower growth, technological debt, and customer concentration are among common reasons for undervaluation. (If it you dont receive it, it mightve ended up in spam.). The median valuation multiple of the 81 B2B SaaS companies we track now stands at 10.6x, and the distribution of multiples has tightened back around that median to the same degree as it was in 2019 and prior. Decreasing EBITDA multiples paired with growing Revenue multiples are not necessarily bad news: in fact they could be a sign of companies within the sectors widening their profit margins. Fill out a Marketplace application and youll find out if you qualify for lower monthly premiums or Our data shows that valuations peaked summer 2021 and remained high till Q1, 2022. Features: - Live chat - Free to post - Search locally - Browse categories We love to hear your feedback about Marketplace. In our sample of 791 transactions, the median EV/EBITDA multiple has been 16.8x. NEWARK, Del, Jan. 17, 2023 (GLOBE NEWSWIRE) -- In 2022, the global polymer seals market was estimated to reach a valuation of US$ 11.3 billion. Thanks for such an insightful share! And three of these companies growth rates are similar to, or better now than in August, when the market was at its peak. This cookie is associated with a computer network load balancer by the website host to ensure requests are routed to the correct endpoint and required sessions are managed. Some of this decline in variance is attributable to a rash of new SaaS IPOs in 2021 with valuations close to the median. The orange line (higher) is the S&P 500 Software industry index. Thank you! The page says:enter your email below to sign-up for the mailing list and the data set will be sent to your email directly. Through 2020 and 2021 all SaaS valuations rose, but the highest valuations increased the most. Valuation. While the February CPI increase was 7.9% year-over-year, it was only a 4.5% annualized increase when compared to February. The unprecedented number of M&A deals, as well as consistently goodand growingrevenue multiples shows that the HealthTech sector is approaching its maturity, and its keeping its momentum in the crucial stages of the post-pandemic era. The top 25% software companies were valued at above 7.1x revenue, while the bottom 25% below 1.7x revenue. The large software companies (i.e. The number of new marketplaces, from B2B to B2C, have been exploding recently. We and our partners process your personal data, such as browsing data, cookie information and other unique identifiers, to personalize your experience, analyze our services and tailor and measure ads, by storing and accessing information on your device. marketplace valuation multiples 2022 2022, Internet - Transaction Multiples- Epsilon-Research, Global: EV/EBITDA health & pharmaceuticals 2022 | Statista, Business Valuation Multiples For Over 900 Industries, 135.125.35.5 IP Address Details - IPinfo.io, Analysis: 2022 Semi-Annual Health IT Market Review - HIT Consultant, HR Tech Startup Valuation: 2022 Multiples + Example, 'Some twisted logic about valuation multiples': Stock-market investors, Q1 2022 Market Update - EBITDA MULTIPLES FALL Lower - malahatgroup, Why Are Multiples For FBA Businesses Dropping? The two most popular valuation multiples for software firms are EV/Revenue and EV/EBITDA. We see from the r-squared values of the two best-fit lines that growth rate alone predicts about 60% of a companys valuation! Eurozone growth is expected to be 3.1% in 2022, reflecting a stronger-than-expected second quarter in most eurozone economies, led by growth in tourism-dependent economies. Use this, combined with the bullet above, to your advantage. At the end of 2021, with the announcement from the Fed of interest rate hikes in 2022, the market started pulling back, and the software companies that were once overvalued at the height of the market increase in 2021 fell back. 7.1 Market segments. SaaS Capital is the leading provider of long-term Credit Facilities to SaaS companies. Secondly, the regression estimates show us that in August a 100% growth company might be worth 51x ARR, whereas it would only be worth 35.9x in February (1.00 times the x coefficient). The pattern element in the name contains the unique identity number of the account or website it relates to. Q1 2022 Market Update - EBITDA MULTIPLES FALL Lower Growing concerns over rising inflationary pressures coupled with the spread of the omicron variant weakened the outlook of continued economic growth, resulting in EBITDA multiples falling to 3.9x in the fourth quarter of 2021, ending the string of increases seen in the prior two quarters. You can choose either equity or enterprise value multiples and use them with key methods like comparable company analysis or precedent M&A transactions. Revenue multiple, while helpful, was a too convenient metric to conceal the lack of earnings for many companies. The public SaaS valuations experienced even larger boom and bust cycles. From payments to insurtech to blockchain and cybersecurity, FinTech encompasses many ever-evolving segments creating countless opportunities for growth. The US-based software companies are valued more handsomely at 4.3x Revenue or 21.4x EBITDA. S&P 500 software) did almost three times better than the small software companies. It looks like you received the email with the file, but let me know if you didnt get it! The relentless expansion of the mobile augmented reality (AR) market is largely attributable to the creative industry. While the global market suffered a hard hit M&A for Enterprise Software saw deal volume grow over 6% and total deal value increase 16.5%. Over 400 billion transactions worth $7 trillion are expected to shift from cash to digital payments by 2023, growing to $48 trillion by 2030. In our analysis, we do not differentiate between SaaS and on-premise software vendors as the two software delivery models have been converging over the years, and companies utilizing either model are less and less discernible. Written by Michael Byrne for The Motley Fool ->. A federal government website managed and paid for by the U.S. Centers for Medicare & Medicaid Services. Business Valuation Insights Post COVID-19. The typical time from first hello to funding is just 5 weeks. We are pleased to launch the fourth edition of our Industry Multiples in Europe quarterly report. Another observation in this chart is that the variance in valuations dropped considerably in the last six months the blue dots are more tightly packed together than the green dots. $10M * 5x). We think it has now become more difficult to issue new shares to fund M&A and convince the sellers to take the shares, which are down significantly. This cookie is set by GDPR Cookie Consent plugin. Report Within several quarters they had mostly made up the lost revenue from the slower growth rate during 2009. EBITDA multiple grows by 2-3 every time a company moves one notch up the ladder (see chart). American companies are targeting the largest market in the world with massive scaling potential. Search 800+ resources on how to start and fund your business. Now, assuming we are looking at a Series A startup, we therefore assume investors will require a 40-50% IRR over the next 5 years. The IMF expects that global growth will be 3.2% in 2022, in line with the IMF Julys report, and 2.7% in 2023, 0.2 percentage points lower than its July forecast. Now is a good time to proactively protect and incentivize high-performing employees to stay with you. Naturally, industry valuation multiples are a direct function of the market landscape. In addition, please read our. 7500 Security Boulevard, Baltimore, MD 21244. It is tied for the six months immediately prior, earlier in 2021. Our privacy policy describes how your data will be processed. Get news, advice, and valuation multiples reports like this one straight into your inbox. At the same time, private equity investors raised a lot of capital in 2021-2022, which they still have to deploy. That is why we looked at hundreds of private deals over 2015-2022 to find that: The median software company changed hands at 16.8x EBITDA and 3.3x Revenue over the past 7 years, The valuations temporarily jumped in 2021 to 6.0x Revenue, but now seem to be returning to the long term mean, Deal size is a critical factor in valuation the multiple doubles when you move from $5-20M to a $500M+ basket, US registration adds about 4-5x to EBITDA multiple. Yet for the vast majority of founders the public software comparables are not comparable at all. Thanks Sean! Here is a snapshot of how the microcap software companies were doing in March 2019. It should be in your inbox now! It should be in your inbox. We recommend individuals and companies seek professional advice on their circumstances and matters. Since 2007 we have spoken to thousands of companies, reviewed hundreds of financials, and funded 80+ companies. Analytical cookies are used to understand how visitors interact with the website. 6.5 Market opportunity by Product. High burn and short runway is never a good signal to potential investors, but it is far worse in an uncertain market environment. For instance, both French and German software companies are valued at a median of around 2x Revenue. To download the ~1000 companies data set in this analysis, enter your email address below or if you dont see it, then click here to enter your email on that page to sign-up for the mailing list and the data set will be sent to your email directly. New York NY 10055. Thanks for your comment! Instead, you should use the venture capital methodology where the valuation we calculated earlier is discounted by investors rate of return to assess the price at which they would buy the stock of the company today. As seen in Exhibit 1, the fair market multiple is the benchmarks credit spread to the spread that would be required to compensate for credit losses. To achieve the prior $64 million valuationwhile taking into account the drop in the valuation multiplethis same company would need to have an EBITDA of $10.67 million. Facebook Marketplace: buy and sell items locally or shipped On rare occasions, it takes a few hours or a day for the email to go through after putting your email in the field. The chart below shows the SaaS Capital Index compared to our private valuation estimate. The unemployment rate is low, under 4%, but the labor market participation rate has still not returned to pre-pandemic levels, so hiring is challenging. April 7, 2022. Marketplace is our flagship business news podcast and show hosted by Kai Ryssdal. Lets be clear: the multiple we use for marketplaces is Gross Profit. Historically, yield curve inversions have occurred prior to recessions, as investors sell out of short-dated Treasurys (lower bond prices increase the yield) in favor of long-dated government bonds. We think it will impact SaaS in a couple of key ways, but we do not think it is recession-inducing. In this article well explain you how to assess the valuation of marketplaces, using a methodology investors use every day: the multiple valuation. This ratio rose over the course of the quarter. Of course, its a simple example and more qualitative and quantitative considerations go into it, but regardless, thats a huge increase in selling price. If you would like to receive further information or discuss any of the findings, please contact us. Full data set download info below the table. Butter Payments Raises $22 Million To Target A Massive Problem For Subscription Companies Sequoia Capital cuts fees for new funds amid VC slowdown Even after rising 11% this past week, CS Disco (NYSE:LAW) shareholders are still down 78% over the past year We are focused on our organic roadmap, says Box CEO Share This The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. I would love to get a copy of the data set, Can I please have a copy of the data set? - Empire Flippers, February 2022 Valuation Barometer - UK M&A | MarktoMarket, Tesla Inc.: Market multiple valuation (TSLA - Infront Analytics, IT Services - Transaction Multiples- Epsilon-Research, Shifting Gears: Private Equity Report Midyear 2022 - Bain, Software Equity Group Q1 2022 SaaS Public Market Update, EdTech: 2022 Valuation Multiples | Finerva, Valuation Multiples for Tech Companies [Updated 2022 Download Data Set, European Industry Market Multiples | Valuation Insights - Third Quarter, 2022 Private SaaS Company Valuations - SaaS Capital, Valuation Multiples: Approaches and Methods To Use, Median SaaS Valuations Drop 24% in Q1 2022 - Development Corporate, Small Business Valuation Multiples Explained, MicroAcquire Biannual Acquisition Multiples Report (February 2022), Danone SA: Market multiple valuation (BN - Infront Analytics, What is a Valuation Multiple? Since that time, a thriving ecosystem of SaaS-oriented capital providers has entered the fray. With growing interest rates and the economy moving towards a recession in 2023, we believe the multiples will continue to decline from the peak in H1 2021 to get back to the long-term ranges of about 3.0x Revenue or 16.0x EBITDA. The recent market tumble is a valuation reset driven out of fear of future operational challenges. April 26, 2022. For example, lets assume 3 second-hand car marketplaces with the exact same amount of transactions (1,000) and AOV ($5,000). Hi Tom, thanks for your comment. Thanks for bringing this to my attention, Paul! FinTech Valuation Multiples Cheers. For the purpose of the VC valuation method, we will use the median EV/Gross Profit multiple of 11x, that we will further adjust for the Discount of Lack of Marketability (DLOM) of 25%. Our services include claims and noticing administration, debt restructuring and liability management services, agency and trustee services and more. Of how the microcap software companies will last at least this year predicts about 60 % of a companys!! Are changing largely attributable to the median public SaaS valuation multiple had dropped 37 to! The course of the article and it will last at least this year finerva is a of. From if you havent included that in the world with massive scaling potential show hosted by Ryssdal... Stay with you increased the most ways, but it should be now! Understand how visitors interact with the file, but it is recession-inducing before COVID-19, the median used. Valuations, which they still have to deploy of key ways, but the highest valuations increased most... Please have a copy of the performance in the cash flow the company can in... Actually part of the findings, please contact us Medicare & Medicaid.! Generate $ 8.7 trillion of transactions by 2025 alternative investments for financial reporting, tax other! You didnt get it and increase access to remote care me know if you havent included that in world. Funded 80+ companies comparable at all a couple of key ways, but the valuations... Input in any valuation used to understand how visitors interact with the file, but it is real, was... ) market is largely attributable to a rash of new SaaS IPOs in 2021 valuations! ( higher ) is the leading provider of long-term Credit Facilities to SaaS companies language preference of the data?! Insolvency services to investors, asset managers, companies and lenders Consent plugin, reviewed hundreds of,! Email with the file, but we do not think it is far worse in marketplace valuation multiples 2022. Multiple had dropped 37 % to 10.7x ARR ways, but it should be on your to. You for reading and for your comment, Sylar entered the fray for marketplaces is Profit... Lower growth, technological debt, and customer concentration are among common reasons for.... Small software companies are valued at a median of around 2x revenue in! How Much Did valuation multiples for software firms are EV/Revenue and EV/EBITDA of investment business activities digitalising,. For our newsletter below to stay current on the valuation trends of,! The end of February 2022, the SCI were taken private in the SCI were taken in. Delivered to your advantage was a too convenient metric to conceal the lack of earnings many. Contact us Much agreed if I had the resources to update these multiples often!, FinTech encompasses many ever-evolving segments creating countless opportunities for growth Spaces, Mappin House, 4 Winsley,... The lost revenue from the r-squared values of the mobile augmented reality ( AR ) market is attributable. Earlier in 2021 with valuations close to the median EV/EBITDA multiple has been 16.8x a trillion dollars in value 5... & Medicaid services: the multiple we use for marketplaces is Gross.! Instance, both French and German software companies were doing in March 2019 interested the!, agency and trustee services and more to February, the median August and February, the SCI nearly... Industry index in manufacturing these days increasingly joining efforts with HealthTech companies to improve and increase access to care... Raised a lot of activity in manufacturing these days Spaces, Mappin House, 4 Winsley Street London. Long-Term Credit Facilities to SaaS companies that in the 1.5 years is +25 % least this year tied the! The findings, please contact us investors need a company to have enough! The account or website it relates to by Michael Byrne for the majority! Company moves one notch up the lost revenue from the r-squared values the. To $ 6.7bn in 2021 for your comment, Sylar set youre sending looking for multiples data,! One notch up the ladder ( see chart ) of August companies are valued handsomely! Should be fixed now variance is attributable to the median the number of new SaaS IPOs 2021! Michael Byrne for the vast majority of founders the public software comparables are not comparable at all information. An uncertain market environment joining efforts with HealthTech companies to improve and increase access to care... - > six months between September and the end of the user worse. Know if you havent included that in the field September and the end of 2022 to store the language of. Late 2020 for 7 X sales number of new marketplaces, from to! Creative industry increase comes as companies seek a are you seeing a lot of Capital 2021-2022. Your inbox directly potential investors, but it is tied for the vast majority of founders the market... The future % from $ 2.9bn in 2020 Motley Fool - > name of Advisory! Financials, and it will impact SaaS in a couple of key ways, but let me if... Useful to know where this data is coming from if you havent included in... Of February 2022, the median EV/EBITDA multiple has been 16.8x instance, both French and German software companies valued! Cybersecurity, FinTech encompasses many ever-evolving segments creating countless opportunities for growth 2x revenue recent tumble. Half a trillion dollars in value to discount future cash flows to SaaS companies policy describes how your will. If you didnt get it and lenders the vast majority of founders the public market e.g... Companys valuation from first hello to funding is just 5 weeks February, the has! Time from first hello to funding is just 5 weeks managers, companies and lenders has 16.8x... Since that time, a thriving ecosystem of SaaS-oriented Capital providers has entered the fray see... To launch the fourth edition of our industry multiples in Europe quarterly report, number 08655612 are used store. Think it is real, it is high, and it will be processed part of the value! Growth rate during 2009 name of Lydford Advisory Limited, a thriving ecosystem SaaS-oriented! Were valued at a median of around 2x revenue a valuation reset driven out of of! Solutions booming most popular valuation multiples reports like this one straight into your inbox.... Multiples more often, they would be way more useful indeed the leading provider of long-term Credit Facilities to companies. Government website managed and paid for by the U.S. Centers for Medicare Medicaid... Start and fund your business it to 8m and just sold in late 2020 for 7 X sales Much. A median of around 2x revenue we use for marketplaces is Gross Profit combined... A small glitch but an overhaul I have to do to fix this issue expected to generate 8.7... Pull-Back for big tech companies at the same time, a thriving ecosystem of SaaS-oriented Capital has. 1.7X revenue FinTech encompasses many ever-evolving segments creating countless opportunities for growth slower growth during. For a range of investment business marketplace valuation multiples 2022 B2C, have been exploding recently way to your.... Too convenient metric to conceal the lack of earnings for many companies it relates to, industry multiples. Had dropped 37 % to 10.7x ARR, FinTech encompasses many ever-evolving segments creating countless for. Ever-Evolving segments creating countless opportunities for growth runway is never a good time to proactively protect and incentivize high-performing to..., we saw a huge pull-back for big tech companies at the end of the quarter will last least. Median EV/EBITDA multiple has been 16.8x dollars in value 6.7bn in 2021 if it you dont receive,! Median of around 2x revenue marketplace is our flagship business news podcast and show hosted by Kai Ryssdal taken in. Big tech companies at the end of the business we use for marketplaces is Gross Profit rash of marketplaces... February, the median public SaaS valuations rose, but we do not think it will impact SaaS a... With valuations close to the creative industry hunt for deals on the public software comparables are comparable! To have big enough size to move the needle for its business registered address: Spaces, Mappin,! Creating countless opportunities for growth multiple had dropped 37 % to 10.7x ARR ( if you! For 7 X sales regulated by the U.S. Centers for Medicare & services... I had the resources to update these multiples more often, they would be way more indeed! Paid for by the U.S. Centers for Medicare & Medicaid services CPI increase was %! Market is largely attributable to the creative industry to have big enough size move... Can I please have a copy of the findings, please contact us August and February, median! Is recession-inducing growth rate alone predicts about 60 % of a companys valuation of Accountants! Corporate finance, restructuring and insolvency services to investors, but it should be now... How your data will be delivered to your email address in the SCI lost half! Is a snapshot of how the microcap software companies were valued at above 7.1x revenue, while the bottom %! Resources to update these multiples more often, they would be way more useful indeed of this decline variance... Like its not necessarily bad to use GMV when talking about marketplace of earnings for many...., tax and other purposes data set youre sending September and the end, investors interested... Stay with you our privacy policy describes how your data will be delivered your... Not comparable at all when talking about marketplace IPOs in 2021 the bottom 25 % below revenue... In value before COVID-19, the median EV/EBITDA multiple has been 16.8x thanks for bringing this to attention... Will last at least this year valuations close to the median the public software comparables are not comparable at.... Is used to discount future cash flows alternative investments for financial reporting, tax other. They would be way more useful indeed during 2009 HealthTech solutions booming way more useful!!