SaaS M&A and Valuation Trends 1H2023

John Mecke
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:

2Q23 Quarterly SaaS Report

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:



John Mecke

John has over 25 years of experience in leading product management and corporate development organizations for enterprise firms.