Valuation Trading Multiples & Precedent Transactions: Workforce and Payroll Management Software Providers
Valuation benchmarks for Workforce and Payroll Management Software Providers. Access public trading comps, EV/EBITDA acquisition multiples, and private market data for pitch books and valuation analysis.
1.1 - Workforce and Payroll Management Software Providers Market Context & Valuation Drivers
Public software providers offering cloud-based workforce and payroll management platforms. Their business models center on subscription pricing per employee and recurring services for payroll, taxes, and compliance, augmented by modules for time tracking, scheduling, benefits, and HRIS. They are grouped as comparables because they monetize employer headcount through sticky, compliance-driven workflows, similar go-to-market motions, and high recurring revenue characteristics.
Typical capabilities include end-to-end payroll processing with automated tax calculation and filing; time and attendance capture via web and mobile; workforce scheduling and labor forecasting; HRIS for employee data, onboarding, and records; benefits administration and enrollment; talent management for performance and development; employee self-service portals; and compliance reporting and analytics. Platforms integrate with accounting and ERP systems, provide role-based security, and offer APIs to extend workflows across multi-location and distributed workforces.
Primary buyers include small and midsize employers, mid-market enterprises, and large multi-location organizations in retail, hospitality, and manufacturing. Valuation benchmarks emphasize subscription ARR growth, gross margin profile on software versus services, net revenue retention from module attach and upsell, and customer retention driven by payroll compliance stickiness. Additional indicators include operating leverage from scale, per-employee pricing durability, and expanding cross-sell into benefits and talent modules.
2. Valuation Analysis: Public Trading Comps & Multiples for Workforce and Payroll Management Software Providers companies
2.1 - Public Peer Groups & Median Valuation Multiples for Workforce and Payroll Management Software Providers sector
Comparable group 1: Workforce and Payroll Management Software Providers
Atoss Software
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of workforce management software and solutions, specializing in time and attendance management, workforce scheduling, and personnel planning, designed to enhance productivity, efficiency, and employee satisfaction for organizations across various industries.
- Key Products:
- Time Management: Systems for tracking and managing employee working hours
- Workforce Scheduling: Tools for creating and optimizing staff schedules
- Personnel Planning: Solutions for forecasting and managing personnel requirements
- Mobile Workforce Management: Applications for managing workforce tasks on the go
- HR Analytics: Tools for analyzing data to improve workforce productivity
Paychex
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of integrated human capital management solutions, including payroll, HR, benefits, and insurance services for small to medium-sized businesses, offering cloud-based HR software, payroll processing, tax administration, and compliance services.
- Key Products:
- Payroll Services: Automated and manual payroll processing, tax administration, and compliance
- HR Administration: Cloud-based software for employee benefits management, time and attendance, recruiting, and onboarding
- Insurance Services: Property and casualty coverage, including workers' compensation, business-owner policies, and health plans
- Retirement Services: Plan implementation, compliance, reporting, and administrative services for 401(k) and other retirement plans
- Compliance Services: New-hire reporting, garnishment processing, and regulatory updates to ensure compliance.