Software 2023 Report

Mar 1, 2024

SaaS Sector Stands Out

As we reflect on 2023, the SaaS sector continues to stand out for its dynamic evolution and technological advancements. This period underscored the industry’s strategic pivot towards leveraging cutting-edge technologies such as AI/ML, and the cloud, marking a significant leap towards more innovative and customer-centric solutions. The year also witnessed transformative M&A activities, illustrating the sector’s resilience and strategic foresight amidst a rapidly changing digital landscape.

Highlights from the report:

  • Global Software M&A activity in 2023 experienced a decrease from the heights of the previous two years, yet it displayed an uptrend compared to the years 2018 through 2020.
  • Deal volume in North America receded to below the levels observed during and before the COVID-19 pandemic (2018-2022).
  • Throughout 2023, the SaaS sector’s M&A landscape was notably shaped by economic recovery challenges, including a spike in business-lending interest rates from approximately 4.5% to nearly 10%, and valuation complexities for companies with significant investments in operations.

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