SaaS M&A and Valuation Trends 1H2023
2 min readOct 17, 2023
I regularly M&A and valuation trends in the SaaS industry. One of my go-to resources is the Software Equity Group’s free research. Their recent report 2Q23 Quarterly SaaS Report shows a rebound in the public market and strong M&A volume point to the durability of SaaS in the current markets. In this article, we discuss:
- SaaS M&A Deal Volume
- SaaS Valuations are Slowly Recovering
- There Are Significant Variations in SaaS Valuations Depending on Category
- Operating Expense & Profitability Trends
SaaS M&A Deal Volume
2022 was a banner year for SaaS M&A. As interest rates rose, SaaS M&A slowed dramatically in 2023:
SaaS Valuations are Slowly Recovering
SaaS Valuations, as measured by median Enterprise Value/Revenues multiples, peaked in August 2022. The median values have been slowly ticking up since then:
