Solving The Value Equation

Cracking Open the Market: A Surprise Look Inside NetSuite vs Sage Intacct Marketplace Partners

With Easter around the corner, we’ve been in the spirit of discovery and what better time for a surprise?

We recently dug into the partner ecosystems of Sage Intacct and NetSuite, expecting to find hundreds of firms vying for the top. But after sorting by revenue and market share across North America, what we found was surprisingly a much more focused field shaped by a few big players and a long-tail of small shops. 

We mapped the top 10 private vs top 10 investor backed firms for each platform here’s what we found.

Investor backed firms are scaling fast but strong private players like myWorkforceGo, Venn Technology, ORBA's Cloud CFO Services, Seller Universe, SuiteDynamics, and Jade Global show that private/bootstrapped growth is still very much alive.

Beyond the Top 10, what the full landscape tells us...

Despite the size of these ecosystems, they’re shaped by a surprising small number of high-performing firms. Here’s what the broader market looks like:

NetSuite marketplace partners (as of Jan 2025)

• 315 private firms
• 108 investor-backed
• $43.9B total revenue
• $13.6B total funding
• 15.86% YoY employee growth

Sage Intacct marketplace partners (as of Jan 2025)

• 133 private firms
• 103 investor-backed
• $24.9B total revenue
• $11.1B total funding
• 1% YoY employee growth

A quick fun fact before we take you to the final takeaway...

Both platforms are backed by enterprise giants – Oracle (NetSuite) and Sage Group plc (Intacct) but their ecosystem behave very differently. NetSuite’s bigger and more growth-focused, while Sage Intacct is tighter industry vertical niches tuned for operational control.

Finally, just like an easter egg hunt, we expect chaos with hundreds of firms and endless options, but instead, we found a clean, competitive map dominated by few powerful players, where scale, funding and firm type shape who leads and who follow.

We’ll be cracking open more market insights soon, so stay tuned!

Reference materials citation:

📌 A Quick Fun Fact

Both platforms are backed by enterprise giants—Oracle (NetSuite) and Sage Group plc (Intacct)—but their ecosystems exhibit distinct characteristics:

https://docsend.com/view/svc6279qzbmpehmy

 

NetSuite: Expansive and Growth-Oriented

• Partner Network Size: NetSuite boasts a substantial partner network, with 315 private firms and 108 investor-backed firms as of February 2025.​
• Revenue and Funding: The total revenue generated by NetSuite partners stands at $43.9 billion, with total funding reaching $13.6 billion.​
• Workforce and Growth: The ecosystem employs over 5 million individuals, experiencing a 15.86% year-over-year employee growth rate.​
• Market Expansion: The NetSuite partners market is projected to grow from USD 0.14 billion in 2023 to USD 0.29 billion by 2032, exhibiting a CAGR of 8.2% .​Business Research Insights

https://docsend.com/view/zjrzj683sdie7gfx

Sage Intacct: Focused on Operational Efficiency

• Partner Network Size: Sage Intacct's partner network comprises 133 private firms and 103 investor-backed firms as of January 2025.​
• Revenue and Funding: The total revenue among Sage Intacct partners is $24.9 billion, with total funding amounting to $11.1 billion.​
• Workforce and Growth: The ecosystem employs approximately 387,000 individuals, with a modest 0.10% year-over-year employee growth rate.​
• Operational Focus: Sage Intacct emphasizes operational efficiency, offering features like automated workflows and real-time dashboards to streamline processes

https://www.btpartners.com/sage-intacct

https://www.businessresearchinsights.com/market-reports/netsuite-partners-market-109318

Deals in the Dessert, an M&A Private Equity Midmarket Conference for Dealmakers, Investors, and Intermediaries

M&A conference recap executive summary

Optimism abounds. Hundreds of deal professionals met to exchange deals and share best practices, and the overarching sentiment is that deal volumes and values will be higher in 2025 than the past 2 years. While no one is predicting values will rebound to 2021 levels, the early indications based on the number of holdover deals from 2024 will launch 2025 off to an impressive start. Sentiment is high that valuation multiples will increase for scaled, professionalized platforms as well as for AI and innovative models.

In 2021, we witnessed a record booming M&A deal environment, but in the following years with inflation and rising costs deals slowed over the past two years.  In Q4 2024 deal values increased driven by optimism for a pro business environment. Beyond the markets impact; the increase in rollover private equity  deal structuring and rise in retiring boomer exits is fueling the volume of deals. Also contributing to the increase in deals is  growing interest and deal activity from foreign buyers and long-term buy-and-hold investors. Overall, for entrepreneurs a small amount of preparation goes a long-way to attracting a qualified buyer/investor. 

M&A Deals Best Practices & Discussions Highlights

• Market Recovery Trends – After an M&A activity peak in 2021, 2023 saw significant declines due to high inflation, increased interest rates, and global uncertainty. Last year showed early signs of recovery: "Rates came down off their peak," said Graeme Frazier, President at PCR Partners. “Plus, lenders started to go a little more risk-on, so the spreads on rates have also come back." The "Market Update” panelists were generally optimistic for 2025, particularly for the second half.
   
• Trust and Disclosure – Lindsey Wendler, Managing Director at 414 Capital, said that undisclosed issues, such as legal history or undocumented employees, can erode trust and derail deals. Transparency is critical, from the outset.
   
• Foreign Investment and On-Shoring -- Andrew Tomat, Managing Director of Four Pillars, Inc., stated that European buyers are increasingly looking to invest in U.S.-based manufacturing to mitigate risks and diversify supply chains.

• Getting to Know Continuation Vehicles – The event’s second panel examined how Continuation Vehicles allow GPs to transfer high-performing assets from older funds to newly created ones, providing liquidity to LPs while enabling further growth. As Tom Marking, Director, Private Capital, Advisory at William Blair, noted: "These deals can be very accretive to the GP... providing an option for LPs to take liquidity or roll over."

• Legal and Regulatory Trends – Changes in regulations, such as increased focus on E-Verify compliance, are influencing diligence priorities. Robert Schroeder, Partner at BakerHostetler, noted that sellers should prepare for stricter scrutiny of employee documentation and regulatory compliance.

• Elongated Deal Timelines – In the “Accelerating Success: Proven Strategies to Shorten Deal Timelines” panel, speakers revealed that deal timelines have increased by 40%-80% since 2010, driven by heightened economic uncertainty, increased data availability, and more diligence on underperforming or B- and C-class assets. Lamar Standley, Managing Director at Highland Rim Capital, said, "Time is certainly in the top quartile of things that threaten deals."

• Alternative Financing Growth – In the "Trends in Financing You Should Know About" panel, Kenneth Saffold, Co-Founder and Managing Partner of o15 Capital Partners, noted that private capital markets, including SBIC-backed funds and non-bank lenders, continue to expand their presence in lower middle market transactions. "The private lending space now holds $3 trillion in deployable capital," he said.

• Tariffs and International Deals – The rising focus on tariffs could disrupt margins and valuations in cross-border M&A. Greg Wilder, Managing Member of Wilder Tax & Wealth Planning, LLC cautioned, "You can’t rely on the last two years’ EBITDA when tariffs are introduced." 

About the Deals in the Dessert M&A Conference for midmarket investors, intermediaries, and advisors held January 21 - 22, 2025 Scottsdale Arizona

The AM&AA Winter Conference is an annual event delivering exceptional educational content and networking opportunities, providing sponsors, attendees and speakers valuable face-to-face time. The line-up of professionals attending includes executives from preeminent investment banks and intermediaries, leading private equity investors, senior and mezzanine lenders, CPAs, attorneys, business valuators, consultants, and other M&A advisors, representing countries from all over the world. Don’t miss the opportunity to network with hundreds of decision-makers with a combined $1 billion in transactional buying power over the next year.

What separates AM&AA conferences?

Our conferences carefully cultivate a well-balanced gathering of M&A professionals, all focused on deals and deal flow, providing you with more valuable networking, sharing and collaboration. We believe inviting high caliber industry experts, such as our session speakers, fosters an environment conducive to valuable knowledge exchanges and insightful thought leadership.

See you in Chicago IL for the AM&AA Summer July 15^th 2025 Conference.
https://www.amaaconference.com/

 

DCPA Conference summary from Digital CPA Denver 2024

My DCPA 24 Conference Recap executive summary from the premier event for accounting professionals to learn about the latest ways to leverage technology.

The theme for 2024: Pathway to Possibilities
(why attend summary)

Notable conference highlights:

1. Demonstration of Intelligent Automation, Agentic AI bots, and AI for Tax, Audit, and Staff Accountant level roles
2. Product announcements from industry tech stack platform & tools
3. CAS Benchmarks & Resources updates and CAS AR-C section 70 standard update on financial statement preparedness : Statement on Standards for Accounting and Review Services (SSARS) 
4. BOI update
5. CPA Generative AI toolkit
6. Innovative practice award winning leaders include Ryan Wolff AAFCPAs, Matt Gardner Hiline, Brenda Cannon Cannon & Associates

Learn more via the DCPA Digital CPA Podcast on leveraging Tech, Transforming Practice.

Join me at DCPA in Washington DC December 7^th-11^th 2025

Workforce Compliance Industry M&A Deal Summary Update

August 2024 update on investments, M&A deals, and profit strategies to capitalize for screening and verifications workforce compliance industry. 

Placement funding and financing Investments Deals 

• More than $1 Trillion to be deployed by USA private credit and equity investors; tech innovation and platform consolidation to continue at a faster pace in Q3 and Q4 than previous 6 quarters 
• More than 20 USA acquisitions on average per year since 2020 for workforce compliance
• Category leaders command 2x the profitability of the average services provider
• Deal trending categories include: AI, Intelligent Automation, Embedded Experience In-the-Flow-of-Work, Post-hire Compliance, continuous Compliance, Professional Due Diligence, Verification including security Access Management Identity Management, Employment and Credentialing and Licensing Verification

Profit Considerations

• Valuations at all-time high for Workforce Compliance in 2021. First half of the 2024 year revealed declining valuations for service providers, with widening valuations for software splitting firms into either below historical average or above average premium valuation
• Increase in competition from non-traditional industry Vertical SaaS solutions as well as global leaders
• 30% YoY revenue growth for niche industry vertical specialists (versus single digit growth for generalists)
• Nearly 1 in 5 organizations conducted post-hire background checks in 2023

Industry Landscape Summary. While there are hundreds of local specialists, the market is dominated by a few large global leaders, with emerging modern leaders backed by investment sponsors. 

• Private Bootstrapped Industry Landscape. The market for USA private (excluding globals, enterprises, and investor backed) workforce compliance services is estimated at $1B in annual revenues based on market share analysis of the top 250 providers.  
• Investor Backed Industry Landscape. The USA workforce compliance for screening and verification covers 84 investor sponsored companies in various segments, with an average revenue size of $72M and total revenue size of $4,032M. The average age of companies is 24 years old, with an average employee growth rate of 0.08% (not growing via adding employees as focused on tech-enablement and automation) and a total employee count of 96,715. The estimated total funding amount is $820M since 2020 to investor backed workforce compliance.

 

• The global workforce compliance market beyond the USA screening & verifications market (including payroll, benefits, and other workforce compliance) is valued at more than $100 billion, with niche and enterprise solutions growing at double digits.

Investment Trends. Billions in capital deployed to Workforce Compliance Verifications and post-hire workforce technology investments.  Majority of the recent investments focused on either platforms, vertical niche industry specific SaaS, or enterprise solutions. More financing and capital options with an abundance of capital available from Private Credit and Private Equity. More deal types and options than ever before…

 

Deal Themes include industry consolidation into platforms (“Platformization”) and Verticalization (Vertical SaaS Industry Solutions).

Deal Summary Snapshot.

Corporate Compliance Industry M&A Deal Summary Update

August 2024 update on investments, M&A deals, and profit strategies to capitalize 

Placement funding and financing Investments Deals 

• More than $1 Trillion to be deployed by USA private credit and equity investors; tech innovation and platform consolidation to continue at a faster pace in Q3 and Q4 than previous 6 quarters (PitchBook) 
• More than 500 acquisitions since 2020 for compliance solutions 
• Category leaders command offer 2x the amount of products/solutions
• Deal trending categories include: AI, Intelligent Automation, Embedded Experience.  M&A deals to consolidate and integrate the backoffice across accounting, compliance, finance HR, payroll, and corporate governance and records.
  
  
  

Profit Considerations

• Valuations higher in 2021 as private equity investment sponsors entered the industry. The first half of the 2024 year revealed declining valuations for service providers, with widening valuations for software splitting firms into either below historical average or above average premium valuation
• Increase in competition from non-traditional industry Vertical SaaS solutions as well as global leaders.
• 30 to 40% revenue growth for niche industry vertical specialists (versus single digit growth for generalists)

 

Industry Landscape Summary.  While there are hundreds of local corporate record filing specialists, the market is dominated by a few large global leaders, with emerging modern leaders backed by private equity.  The market for USA private (excluding globals, enterprises, and investor backed) corporate compliance services is estimated at $1B in annual recurring revenues based on market share analysis of the top 125 providers as well as average spend per business. 

Investment Trends. Billions in capital deployed to Compliance investments.  Majority of the recent investments focused on either global platforms, vertical niche industry specific SaaS, or enterprise GRC EHS or RegTech solutions. Deal Themes include industry consolidation into platforms (“Platformization”) and Verticalization (Vertical SaaS Industry Solutions).

Strategy to Capitalize. More expansion deal types and options than ever before… And more financing and capital options with an abundance of capital available from Private Credit and Private Equity.

 

Deal Analysis. Significant product expansion across compliance and backoffice governance.  

WFM HR Tech Software Deal Summary midyear Update

Workforce Management Work and HR Tech & Payroll Services Industry Investment and M&A Deal Briefing August 2024 update on investments, M&A deals, and profit strategies to capitalize. 

Placement funding and financing Investments Deals 

• More than $1 Trillion to be deployed by USA private credit and equity investors; tech innovation and platform consolidation to continue at a faster pace in Q3 and Q4 than previous 6 quarters (PitchBook) 
• More than 1,000 acquisitions since 2020 for work tech  
• Category leaders command 2x pricing premium (and ½ the cost of customer acquisition)
• Deal trending categories include: AI, Intelligent Automation, Embedded Experience, Talent Intelligence, Upskilling, WFM

Deal Considerations

• Valuations at all-time high for Work Tech in 2021; first half of the year revealed declining valuations for service providers, with widening valuations for software splitting firms into either below historical average or above average premium valuation
• Increase in competition from non-traditional industry Vertical SaaS solutions as well as global leaders
• 30 to 40% revenue growth for niche industry vertical specialists (versus single digit growth for generalists)

 

WFM Industry Landscape Summary

More than 2,000 payroll service providers in North America across various models: payroll, HR, accounting, software, EORs, PEOs, BPOs, Benefits, etc.. Payroll add-on products and services are numerous across the  backoffice, tax, compliance, HR, and FinTech solutions. The majority of the market is narrowly segmented by size and/or vertical.  Valuations near an all-time high for premium providers. For solution providers, Digital Transformation (Platformization, Embedded, Verticalization, AI, Intelligent Automation), represents a BIG value opportunity, but also a rising cost and risk. Rising costs of compliance and the rapid pace of technology R&D investments, coupled with non traditional well-funded entrants into the market; and the payroll industry is at the early stages of a seismic market share re-alignment.

• Pre SaaS, the majority of the market share dominated by the top ten payroll providers. In the near-future, the top 10 payroll providers will not resemble the current logos. 
• In 2010 the public payroll providers controlled 80% of the market.  Today, they still control 80% of the market but the % per public firm has been diminished.  Market size and growth by segment available upon request. 

Investment Trend. Billions in capital deployed to WorkTech investments across global payroll and EOR software, earned wage access, expense management, vertical WFM SaaS. More financing and capital options with an abundance of capital available from Private Credit and Private Equity.

Deal Theme. Consolidation into platforms (“Platformization”) &/or Verticalization (Vertical SaaS WFM) driving M&A deals. Also, significant market share expansion and consolidation underway by industry leaders across Payroll, PEO, EOR, and Vertical SaaS models adding WFM capabilities such as labor analytics, advanced scheduling, AI workflow solutions, and niche solutions. 

 

Conference speaker session recap: Mastering the right KPIs to manage today’s firm and create great value for tomorrow’s transition

About. Rightworks hosted its annual Inspire Conference Thursday November 30^th 2023 at the Ritz-Carlton Sarasota with an audience of hundreds of CPA professional partners and owners from Rootworks members and RightNetworks clients from across the country.  The conference featured CPA industry thoughtleaders, speakers, vendors, and created a number of peer networking opportunities.

 

Mindful Metrics for the Right Exit
presented by Charles Bedard

 

First, the Good News.  Firms are worth a range of values and more options exist than ever before. A few factors/drivers determine if your business is worth a premium valuation if you exit to strategic buyer or investor.

But, the bad Ugly News.  Every owner exits their business, but not every exit is planned.  Because the majority of owners do not have a plan to transfer the business more than 80% are dissatisfied by the outcome.  And less than 1% of owners create wealth from their transfer of the business because they fail to put a plan in place.  

For more information on Mastering Mindful KPI Metris that Matter for a premium Transition, contact Charles Bedard at ERGO Comps here:
https://www.ergocomps.com/contact-ergo.html

To learn more about your firm’s valuation and how
it compares to your peers visit here:
https://www.rightworks.com/community-academy/

Buyside Deal Sourcing Origination Sources News

There are a number of sources for deal flow ranging from (1) building your own target list using a number of database sources, (2) building relationships with intermediaries financial sponsors, and private equity firms and/or (3) outsourcing to a vendor partner to build proprietary deal flow.

Pre 2020, building proprietary deal flow was primarily a labor intensive manual research process. However, with advanced search and marketplace technologies emerging there are now a number of firms leveraging these emerging technologies to search and source more efficiently and effectively. 

Since 2020, eight (8) firms have been funded with more than $121m deployed (more than $300m deployed to the top 25 B2B database providers since 2010). 

With the increase in capital “dry powder” readily available and the changing ownership demographics and psychographics, the long-term forecast is for an increase in deal volumes.    

Given the increasing competitive deal environment; it’s become even more important to  develop proprietary deal flow.  In 2023 the competition for the best deals will be more intense. As such, firms want first dibs on prospective sellers—often ahead of a formal auction or investment bank hiring will need to develop proprietary deal flow.

Capitalizing on 2023 deals means leveraging these advanced search technologies to identify these deal opportunities before others and partnering with seasoned industry executives to build a pipeline of proprietary deal opportunities.

As a number of entrepreneurs in 2023 face uncertainty and decide liquidity is a better option than doubling down on their existing business; buyers will have a number of available deal options that were not prevalent in recent years.

M&A CorpDev Buyside Deal Sourcing Origination Sources List

Logos Market Map of M&A Corporate Development Software List

Marketing during a downturn

The brutal fact is we’re still in a market downturn, and we may be for a while. Rather than fight it, embrace it. Great brands are built in down markets.

To help you find your way, The Starr Conspiracy is offering a fireside chat series for the month of December on how to win with CX during the downturn. We’ll be talking to Work Tech pros who made big moves during the last downturn to get their perspectives on what to do today.

FYI: The marketing in a downturn webinar will answer the following questions

• How to market HR Work Tech in 2023
• How to re-allocate marketing and sales spend in 2023

Hope you can join us!

Webinar registration at

https://secrets.thestarrconspiracy.com/marketing-during-a-downturn-fireside-chat-series?

Webinar replay podcast link at

https://tinyurl.com/WorkTechMarketinginadownturn

Sources & Uses Planning for 2023: Budget & Spend Management Considerations

For many institutional investors, the #1 priority for growth firms has shifted from revenue sales growth to capture market share at all costs to longer-term metrics such as R-Value and NRR.

• R-Value is the percentage of combined profitability and growth rate (practically calculated as YoY growth + adjusted EBITDA profitability).
• Gross Profit Net Revenue Retention (GPNRRR) is the percentage of ross profit recurring revenues retained from existing customers over a period of time (practically calculated as the gross profit from the recurring revenues for the existing customers after accounting for churn and revenue adjustments year-over-year).

As you plan for 2023 consider the following:

R-Value Impact on Valuation for B2B firms with North America HQs

Key takeaway: Determine your R-Value growth by each industry vertical, each product and by cueach stomer persona and plan S&M programs and spend accordingly.

Supporting resources about Value driven by planning around R-Value include:

1. OpenView – SaaS Benchmarks Report
2. SaaS Capital – 2022 SaaS Company Growth Rate Benchmarks
3. TSC – marketing in a downturn fireside chat series
4. Forbes – Don’t pull the plug, shifting marketing in an economic downturn

 

2022 OpenView SaaS Benchmarks Report

Valuation driven by R-Value

If you can achieve 120% NRR: Your revenue doubles in 5 years even with no new customers

SaaS Capital Benchmarks

Value based Revenue Multiple Range of Value for private B2B tech-enabled and SaaS