SaaS M&A Rebounding SaaS mergers and acquisitions (M&A) volume experienced a correction, post-pandemic. We've seen overall deal-volume stabilize to pre-pandemic levels with a steady increase in quarterly deal count. The cost of capital continues to have an impact on larger deals affecting the overall deal value in Q1 2024. However, deal-volume has reached a high- water mark outside pre-pandemic quarters – with Pitchbook estimating 154 deals competed. Deal-makers have gotten creative with their approach to transactions, looking to make more smaller deals. The middle-market and lower-middle- market is set to capitalize from this overall trend as PE firms look away from the typical megadeals.
Avg SaaS M&A Value by Industry (2018-2024) (In Billions of USD)
2018-2024
0 50 100 150 200 250 300 350 400 450
Enterprise Resource Planning
Customer Relationship Management Knowledge Management Systems
Analytic Platforms
Other Application Software
Supply Chain Management
SaaS M&A by Quarter (In Billions of USD)
120
300
Key trends:
80
200
• Increased Activity in AI and Enterprise Operations: Automation helps businesses keep up with changing customer demands. AI furthers progress as it allows both personalization through algorithmic searches, along with many other helpful tools, as well is the daily up-keep of order processing, inventory management, and financial reporting.
40
100
0
0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 2018 2019 2020 2021 2022 2023 2024 Deal Value Deal Count Estimated Deal Count
Source: Pitchbook as of March 2024.
15
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