Distribution of Lower Middle Market SaaS M&A Deals Smaller transactions remain the cornerstone of M&A activity in 2024, accounting for more than 70% of the total deal volume.
71% of M&A deals were valued under $50M
79% of M&A deals were valued under $50M
Select FE Advised Deals
8%
13%
13%
Salesforce Payment Solution
SaaS Marketing Solution
16%
Sold to
Sold to
2024
2023
51%
15%
64%
AI SaaS Content Creation
B2B SaaS - Shopify App
20%
Private Buyer
Private Buyer
Sold to
Sold to
$0 - $25M $25 - $50M $50 - $100M $100M+
• Strategic acquirers continued to be the primary drivers of M&A activity, securing 66% of the total deal volume in 2024 • Private equity firms demonstrated a more cautious investment macro-outlook however; activity is likely to rebound as market conditions improve with a more positive macro-outlook • Smaller transactions below $50 million remained a key contributor to the overall level of M&A activity Source: Pitchbook as of December 2024. Data consists of transactions where deal value was disclosed.
• The business & productivity SaaS sector dominated overall M&A activity in 2024, capturing 42% of all deals in the sector – This surge was primarily driven by the growing need for automation and AI solutions to enhance business efficiency • High demand for financial SaaS drove 12% of the total SaaS M&A volume – Companies are actively seeking acquisitions to enhance compliance and operational resilience in the face of stricter regulations
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