SaaS M&A Cools as Sponsors Favor Fewer, Higher-Quality Deals
Software M&A stayed active in the second quarter of 2026. Private equity and venture activity softened alongside the broader market. PE and VC investment into SaaS companies eased sequentially in Q2 2026, extending the flight-to-quality pattern in which sponsors concentrate capital on fewer, larger, and more profitable targets rather than early-stage bets.
Highlights from the report:
- SaaS M&A moderated to 341 deals in Q2 2026 from 378 in Q1, but remains well above the 2022 to 2023 trough.
- Public SaaS valuations reset lower over the past year, with broadly negative trailing performance amid AI-disruption fears.
- Median forward multiples sit near 3.1x revenue and 23.7x EBITDA, leaving room for buyers to acquire quality below peak.
- Private SaaS transactions continue to carry a modest premium to public multiples on revenue, roughly 5.3x versus 3.1x, a sharp compression from the 2020 to 2022 peak.
- Business productivity software again led SaaS deal activity at roughly 52 percent of
the count.
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