M&AStaying Power: A Dive into Software M&A Trends in 2022

See what SEG’s recent survey of the top software-focused private equity investors reveals about the software M&A market.

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Despite economic uncertainty and public market volatility, the overall outlook of SaaS M&A deal volume and multiples remain strong. To add context to our recent analysis of public market data and SaaS M&A deals, we surveyed the top software-focused private equity investors about their perception of the landscape and how their investment priorities have adapted to the current market.


  • Overall, the volume of SaaS M&A deals and associated multiples remain strong. Both strategic and private equity buyers look to benefit from the broader trends of digital transformation taking place in recent years. While PE investors have noted some decreases in both deal volume and valuations, the YOY decline in valuations is much smaller compared to the public market.
  • In a market where PE investors are chasing a smaller number of what they perceive to be high-quality assets compared to last year, software companies with the right profile have a clear advantage.
  • Amid greater uncertainty, investors are looking for mission-critical, recession-resistant solutions.
  • SaaS companies with a combination of high gross profit margins and high gross revenue retention are especially attractive investments right now. Investors are looking to these metrics as indicators of growth and stability.
  • Investors expect a modest decrease in the volume of high-quality deals during the second half of the year. This could create strong opportunities for companies with desirable profiles and attractive metrics.