After a record-breaking performance in 2020 and 2021, the software M&A market is leveling off. Top of market valuation multiples of 10x to 12x ARR have all but faded, while deal volume in the tech sector appears to have softened by roughly 30%. Thank the economic slowdown. The rise of inflation has lowered prospects of nearer term ROI and higher interest rates make debt financing more expensive and more difficult to obtain. Bottom line: Compared to the last two years, there are fewer options for sellers in the software M&A and capital markets.
Download the full report below to understand the outlook for Software M&A heading into 2023 and what that means for those looking to exit or raise growth capital.