Tech M&A is evolving fast. Whether you’re leading strategy at a venture-backed startup or managing acquisitions for a large firm, the contrast between enterprise and consumer deals is something you can’t ignore. This guide takes you into the data, unpacking the numbers behind the deals and giving you practical insights you can use to make smarter moves.
1. In 2023, 68% of total tech M&A deals were in the enterprise segment
The enterprise advantage
The shift toward enterprise tech M&A isn’t just a short-term trend—it’s a full-blown structural change. In 2023, nearly seven out of ten M&A deals in the tech sector were enterprise-focused. This means buyers are actively favoring software, services, and platforms that power businesses, not just consumers.
Why? Enterprise businesses tend to offer recurring revenue models, lower churn, and more predictable growth.
Investors and acquirers love stability—and enterprise tech provides just that. SaaS models, cloud infrastructure, cybersecurity, and workflow automation tools fall squarely into this category.
What this means for founders
If you’re building a B2B company, the odds are in your favor from an exit standpoint. Buyers are actively looking for robust, sticky software that powers mission-critical functions. Make sure your product is positioned as essential, not just “nice to have.” Highlight retention metrics, contract lengths, and integration depth when you pitch to acquirers.
For acquirers and investors
This stat also signals where attention should be placed. If you’re buying companies, enterprise startups may be more resilient and scalable. But they’re also more competitive in pricing. Do your diligence.
Focus on retention cohorts, net revenue retention (NRR), and ease of cross-selling to your existing client base.
If you’re in consumer tech, this isn’t a death sentence. But it is a sign you need to differentiate hard. Virality, network effects, or embedded monetization will be critical. Otherwise, your buyer pool may be limited.
2. Consumer tech M&A deal volume declined by 31% year-over-year in 2023
Why consumer tech is cooling
Consumer tech, once the darling of Silicon Valley, is now facing real headwinds. In 2023, deal volume for consumer tech acquisitions dropped a steep 31% from the previous year. That’s not a minor dip—it’s a clear signal that interest has cooled, and fast.
The reasons are clear: consumer habits are unpredictable. Ad-driven models have come under pressure, privacy regulations are tightening, and competition is cutthroat. On top of that, the end of the zero-interest-rate era means investors are less willing to back companies without clear profitability paths.
What this means for builders in consumer
This stat should shape how you raise funding and plan exits. It’s no longer enough to build a user base and hope someone buys you for your audience. You need strong monetization, clear data on customer lifetime value (CLTV), and a defensible growth strategy.
Think beyond downloads and monthly active users. Acquirers now want to see profitability or at least a clear path to it. That means tightening your funnel, improving retention, and getting closer to break-even.
If you’re considering acquisition, position your company as a strategic bolt-on for a larger brand. Show how your user base complements their core, or how your tech can plug into their existing systems.
How acquirers should respond
For buyers, this decline in consumer M&A may be an opportunity to scoop up undervalued assets. If you have strong operational capabilities, you can acquire and fix struggling consumer brands. Just make sure you’re not buying vanity metrics. Look under the hood—what’s the cost to acquire users? How many stick around after 30 days? What’s your real margin after all costs?
If you’re a private equity firm or a holding company, this may be the time to buy consumer companies at a discount and roll them up—just make sure your operational playbook is airtight.
3. The average enterprise tech M&A deal size in 2023 was $912 million
Bigger deals, bigger confidence
Let’s talk dollars. The average enterprise tech M&A deal size in 2023 was a hefty $912 million. That’s nearly a billion per deal on average—a massive number that tells us a lot about where the smart money is going.
Enterprise tech isn’t just attracting attention; it’s attracting big checks. This is partly due to the high valuations of mature B2B companies, but also because large enterprises are increasingly looking to buy rather than build.
Think cloud infrastructure, DevOps tools, business intelligence platforms, and cybersecurity vendors. These aren’t optional for most companies anymore. They’re must-haves, and that drives demand—and price tags—sky-high.
What this means for founders raising or exiting
If you’re building in enterprise tech, this is a green light to go big. You’re playing in a space where buyers have deep pockets. But it also means the bar is high. Buyers expect product-market fit, scalable infrastructure, and strong enterprise sales motion.
Your story matters. When you’re talking to acquirers or investors, emphasize the size of the market you’re serving, how deeply you’re embedded into customer workflows, and the scalability of your platform.
It also helps to be ecosystem-compatible. If you integrate tightly with Salesforce, Microsoft, AWS, or other enterprise giants, you’re more attractive to those same companies—or their competitors.
What investors should take from this
If the average enterprise deal is pushing a billion, there’s still plenty of upside. This stat isn’t just about scale—it’s about confidence. Buyers aren’t throwing around this kind of money unless they see long-term value.
Look for companies that are hard to displace. Focus on those with 90%+ gross retention, high expansion revenue, and products that are operationally embedded in their customers’ day-to-day. These are the companies that command premium valuations.
4. Consumer tech M&A deals averaged $386 million in 2023
Smaller deals, tighter economics
The contrast is stark. While enterprise M&A deals averaged nearly a billion, consumer tech deals clocked in at an average of $386 million in 2023. That’s less than half. The gap isn’t just about the size of the companies—it reflects how acquirers view risk, growth, and sustainability in consumer versus enterprise businesses.
Consumer tech often has wider adoption but thinner margins. A viral app may attract millions of users, but monetizing those users is a different game. And as privacy laws limit data usage and ad tracking becomes more complex, monetization becomes even harder.
Implications for consumer tech founders
If you’re building in consumer tech, you need to set realistic expectations. You may not land a billion-dollar acquisition—but that doesn’t mean your company isn’t valuable. It does mean that your path to a strong exit involves showing how you generate revenue at scale. Focus on sustainable unit economics, clear growth channels, and high engagement.
When negotiating, highlight not just your current revenue, but the future potential of your audience. If your users are highly engaged or concentrated in a valuable demographic, that can still make you an attractive acquisition target.
Also, consider partnerships early. Building alliances with larger platforms (streaming services, e-commerce giants, or telcos) can increase your visibility and boost your strategic value.
How acquirers can use this insight
For strategic buyers, this average deal size offers a budget-friendly entry into tech innovation. Instead of spending nearly a billion, you might get strong brand equity and user traction for under $400 million. But be selective—many consumer companies are flashy but fragile.
Dig into the details: customer acquisition cost (CAC), average revenue per user (ARPU), churn rates, and retention. These will tell you more about long-term value than raw download numbers or social media buzz.
If you’re part of a legacy brand trying to modernize, acquiring a lean, high-growth consumer tech company can inject new energy. But success depends on integration—plan that early.
5. 74% of tech unicorn acquisitions in 2022 were in the enterprise software space
Unicorn hunting goes B2B
Let’s talk unicorns—those rare startups valued at $1 billion or more. In 2022, nearly three-quarters of tech unicorns that got acquired were in the enterprise software space. That says a lot about what kinds of companies are making it all the way to the top and what types of businesses are most desirable at the highest levels.
Enterprise software is where acquirers are placing their bets. It offers predictability. A company serving businesses with long-term contracts and high switching costs is often worth more than a viral app that’s popular today but gone tomorrow.
Building a unicorn in the enterprise space
If you’re dreaming of unicorn status, this stat should catch your attention. It’s not about consumer buzz—it’s about operational depth. Enterprise software companies that become unicorns often serve big problems for large customers. They sell into IT departments, finance teams, compliance divisions—critical areas where the pain is big and the budgets are bigger.
Your focus should be on scalability and customer success. Build deep integrations. Make sure your product becomes the backbone of a business function. That makes it sticky, defensible, and—most importantly—acquirable.
Also, don’t underestimate design. Even though it’s B2B, great UX is a huge differentiator. Enterprise buyers want ease of use too. If you can combine beautiful design with technical depth, you’ve got something special.
For investors and acquirers
The lesson here is to look beyond the hype. Enterprise unicorns are more likely to exit successfully. That means they offer better returns and less volatility.
When you evaluate enterprise companies, look for things like customer lock-in, integration complexity, and renewal rates. These factors tell you how durable the business really is.
From an M&A standpoint, buying an enterprise unicorn can be a game-changer. But be prepared—it’ll cost you. That’s why it’s smart to build relationships with founders early, follow their traction, and understand their roadmap well before you make a move.
6. Enterprise SaaS accounted for 41% of total tech M&A transaction value in 2022
SaaS is eating tech M&A
Here’s a big one: Enterprise SaaS made up 41% of all tech M&A transaction value in 2022. That’s nearly half of all money changing hands in the entire tech M&A landscape. It tells us that software-as-a-service—especially for business use—is not just dominant; it’s central to how deals are being made.
This trend has been building for years. SaaS companies have recurring revenue, high margins, and scalable models. Investors love them, and so do buyers. From CRM systems to collaboration tools to analytics dashboards, enterprise SaaS solutions are becoming critical infrastructure for companies across industries.
Building a SaaS company for acquisition
If you’re in SaaS, you’re in a sweet spot—but only if you get the fundamentals right. Your path to a strong acquisition involves clear metrics: Monthly Recurring Revenue (MRR), Customer Lifetime Value (CLTV), Customer Acquisition Cost (CAC), and churn.
Focus on net retention. If customers are spending more over time, that’s a strong signal of value. Also, pay attention to expansion opportunities—upsells, cross-sells, and feature tiers.
Differentiation is key. The SaaS market is crowded, so you need a wedge. That could be a unique vertical (like legal, education, or manufacturing), a pricing innovation, or a breakthrough feature set.
Don’t forget compliance and security. Acquirers will scrutinize your data practices, permissions systems, and uptime. Invest in this early, and it will pay off in the diligence phase.
How buyers should respond
If you’re acquiring in SaaS, you’re entering a premium market. But price alone doesn’t guarantee quality. You need to dig into customer health scores, support load, and churn patterns.
Also, evaluate how easy it is to migrate the acquired platform into your existing product stack. If your team can quickly cross-sell the new product to your customer base, the deal pays for itself faster.
If you’re a financial buyer, SaaS offers some of the best opportunities for roll-ups. Acquiring multiple SaaS tools with overlapping customer bases can create operational leverage and pricing power.
7. Between 2018–2023, enterprise tech saw a 2.5x increase in average deal size
Enterprise deal sizes are growing fast
Over the five years from 2018 to 2023, the average deal size for enterprise tech M&A increased by 2.5 times. That’s not a slow, steady rise—it’s a leap. The market is clearly sending a message: enterprise tech is becoming more valuable, more competitive, and more central to strategic growth.
This surge reflects growing confidence in enterprise business models. As digital transformation accelerates across industries, acquiring robust, proven enterprise tools becomes a priority for everyone—from legacy firms to digital-first companies.
What founders should understand
This growth in deal size signals that buyers are willing to pay more—but they expect more, too. If you’re running an enterprise startup, you need to be thinking about scale from day one. That includes your architecture, your onboarding flows, and your customer support infrastructure.
You don’t have to be a large company to get acquired at a high value, but you do need to prove you can get there. What acquirers want is a clear blueprint: if they inject capital or integrate your product, can it grow quickly and securely?
Also, keep in mind that growth alone isn’t enough. Buyers will pay premiums for profitability, not just top-line revenue. Show strong gross margins and a smart path to EBITDA-positive territory.
For acquirers and investors
This 2.5x growth should act as both validation and a warning. It validates the strategy of investing in or acquiring enterprise tech—but it also means you’ll face inflated valuations if you wait too long.
Get in early where you can. Build partnerships and informal alliances with rising enterprise startups. Follow their growth. Maybe you co-sell or integrate early on. When the time is right, the acquisition will feel like a natural extension of your roadmap—not a rushed move.
And if you’re a late-stage investor, lean into diligence. What’s driving the growth? Is it true customer need, or just heavy marketing spend? The best enterprise plays have organic pull, not just paid reach.
8. Consumer tech M&A volume dropped below 25% of total tech M&A for the first time in 2023
A shrinking slice of the pie
This is a major moment in tech M&A history. For the first time ever, consumer tech deals made up less than a quarter of total tech M&A volume in 2023. That marks a definitive shift in where buyers see long-term value.
This doesn’t mean consumer tech is going away. But it does mean it’s getting more selective. Buyers are no longer throwing money at unprofitable apps or consumer networks without a clear monetization engine. The era of “eyeballs first, revenue later” is over.
What builders in consumer tech must do now
If you’re in consumer tech, this stat is your call to sharpen your model. You need more than just users—you need active, engaged, paying users. Whether you monetize through subscriptions, transactions, or partnerships, your value needs to be obvious.
Look at retention curves. Focus on the user journey. What makes people come back? What makes them pay? These questions are not optional anymore—they’re the core of your valuation.
This also means you need to rethink your exit strategy. A lot of consumer companies used to aim for acquisition by big tech giants. But now, those giants are buying fewer, more strategic assets. So, make your company essential. If your product can plug into a larger ecosystem or enhance a buyer’s engagement funnel, you’ll stand out.
Advice for acquirers
This drop in consumer M&A volume might create openings—but only if you’re careful. There will be distressed assets. There will be “hot apps” with no path to revenue. Avoid these unless you have a clear fix.
Instead, focus on consumer businesses with loyal, paying users and defensible moats. Think niche markets, strong communities, or proprietary content.
And if you’re a non-tech buyer—like a traditional media or retail company—this is your chance to enter tech cheaply. Just make sure you have a post-acquisition integration plan. Owning tech is not the same as operating it.
9. Cybersecurity deals (enterprise-focused) made up 17% of all tech M&A volume in 2023
Security is now strategy
In 2023, cybersecurity deals alone made up 17% of total tech M&A volume. That’s nearly one in every six deals, focused entirely on security. It shows how seriously enterprises now take data protection, infrastructure security, and compliance.
This rise isn’t just driven by fear—it’s strategic. Companies aren’t just buying cybersecurity to protect themselves; they’re doing it to enable new business. If your customers trust your platform, they’ll spend more. If you meet regulatory requirements, you can enter new markets. Security is now a business enabler.
For cybersecurity startup founders
If you’re building a security product, you’re in the right place at the right time. But don’t let the excitement distract you from the fundamentals. This is one of the most crowded markets in enterprise tech, and buyers are overwhelmed by options.
You need to differentiate. That could mean focusing on a specific industry, building seamless integrations, or targeting emerging areas like zero-trust architectures, cloud-native security, or AI-based threat detection.
Build strong case studies. Security is one of the hardest areas to sell in because it’s invisible until something goes wrong. So use customer stories to show impact—faster threat detection, smoother audits, fewer breaches.
And work with CISOs early. These are the decision-makers. Build trust with them and understand their real-world constraints.
For buyers and investors
This stat shows you where the pressure is. As attack surfaces grow with remote work, cloud sprawl, and IoT, every business needs better security. That’s why cybersecurity is eating up a bigger share of M&A.
But with so many startups in this space, you have to cut through the noise. Look for platforms, not features. One-trick pony solutions may not be worth the integration pain.
Also, check interoperability. How well does the product work with your stack or your portfolio companies’ tech? Acquiring a security firm that creates friction is a liability, not an asset.
Private equity firms, in particular, have an edge here. Many security firms are founder-led but lack scale. With the right playbook, you can acquire, professionalize, and scale for significant returns.
10. 62% of the largest $1B+ tech deals in the last five years were enterprise-focused
The big money favors enterprise
When we talk about major M&A—those $1 billion and above deals—62% over the past five years have gone to enterprise tech companies. That’s nearly two-thirds of all mega-deals. These aren’t just large numbers. They reflect strategic conviction from buyers that enterprise tech is the backbone of long-term business growth.
These big-ticket deals typically go beyond buying just product or revenue. They’re about acquiring market position, mission-critical capabilities, and sometimes entire customer ecosystems. For example, enterprise buyers may spend a billion to gain access to Fortune 500 customers or to own a category-defining platform.
Lessons for founders playing the long game
If you’re building a startup and aiming for a major exit, this is your north star. The companies getting billion-dollar offers aren’t random—they usually own their niche, solve painful business problems, and have strong sales infrastructure.
Focus on three things:
- Deep value: Solve a mission-critical business function. Payroll, cloud cost optimization, compliance, security—pick a pain point that’s high-stakes for your customers.
- Customer stickiness: Long-term contracts, deep integrations, and low churn make your business extremely appealing to acquirers.
- Scalability: If your infrastructure and go-to-market motion are built to scale, your acquisition price goes up significantly.
The biggest mistake founders make is thinking billion-dollar exits come from flash. In enterprise tech, they come from execution, reliability, and trust.
Takeaways for acquirers
These numbers should guide your M&A pipeline. The companies commanding billion-dollar valuations in enterprise aren’t just feature-rich—they’re ecosystem-critical. They’re often selling to CIOs, CTOs, and procurement leaders who will keep renewing year after year.
If you’re on the buy side, make sure you build long-term relationships with the founders and teams of rising enterprise stars. Stay close. When the right moment comes, you want to be the first call—not the highest bidder.
Also, assess market positioning. You’re not just buying software—you’re buying the space the company occupies in the minds of its customers and partners. Own that, and you own the narrative.
11. The CAGR of enterprise tech M&A volume from 2015–2023 was 14.2%
Steady growth, strong signal
A compound annual growth rate (CAGR) of 14.2% in M&A volume over nearly a decade is no fluke. This isn’t a trend—it’s a movement. From 2015 to 2023, enterprise tech deal activity has risen steadily, not in spikes, but in consistent, year-over-year increases.
This tells us something critical: enterprise tech isn’t subject to hype cycles in the same way consumer tech is. The demand for better infrastructure, security, analytics, automation, and collaboration tools keeps rising, no matter what the market looks like.
What it means for builders and sellers
If you’re building a company in enterprise tech, this stat is your reassurance. The market is maturing, not shrinking. Even during economic slowdowns, enterprise spending continues—because businesses still need to operate, serve customers, and grow.
Your job is to build with staying power. That means solving real problems, not just riding trends. Focus on products that improve workflows, reduce costs, or de-risk operations. These are the kinds of tools buyers want in both good times and bad.
And if you’re preparing for acquisition, know that consistent deal activity means more options. You don’t have to wait for a bubble or IPO window. There are always buyers looking to plug gaps, acquire talent, or consolidate verticals.
Strategic insights for acquirers
CAGR tells you more than a headline spike. It signals reliability. If enterprise deal volume has grown every year at 14.2%, you’re looking at a stable, resilient market.
This should guide your investment thesis. Instead of reacting to quarterly news, build an M&A roadmap around long-term enterprise shifts—cloud migration, data privacy, remote work infrastructure, and AI-powered automation.
And if you’re competing with private equity for deals, remember: consistency favors those with a long view. If you can match operational support with strategic intent, you’ll win the best enterprise targets.
12. Consumer mobile app acquisitions declined by 45% from 2021 to 2023
A steep fall in mobile M&A
Mobile apps used to be at the heart of consumer tech excitement. From gaming to fitness to social networking, mobile-first startups dominated pitch decks and acquisition headlines. But from 2021 to 2023, acquisitions in this space dropped by a whopping 45%.
This decline reflects multiple forces: stricter privacy laws (limiting ad targeting), lower ROI on app installs, and increased customer acquisition costs. But it also reveals a deeper truth—many mobile-first businesses don’t scale well or sustain user interest over time.
Advice for mobile app founders
If you’re building a mobile-first business today, you need to be hyper-intentional. Gone are the days when user downloads alone could justify a premium valuation.
Here’s what you should prioritize:
- Engagement depth: Acquirers want sticky apps. Focus on daily active use, session time, and retention after the first 30 days.
- Monetization clarity: Subscription models are in. Ad models are out—unless you have massive volume or proprietary data.
- Platform expansion: Don’t limit yourself to mobile. Build web versions or enterprise APIs. Show you can become an ecosystem, not just an app.
And, prepare to bootstrap longer. The VC landscape is cautious with mobile plays. To become acquirable, you’ll need to show healthy metrics and a path to positive cash flow.
What acquirers should consider
This decline in mobile M&A is both a caution and an opportunity. Caution—because many apps are disposable, high-churn, and overhyped. Opportunity—because if you find a high-retention, high-ARPU mobile product, it may be available at a discount.
Dig deep into usage metrics. Ask hard questions about dependency on push notifications, user acquisition channels, and feature fatigue. An app with 10 million downloads means little if daily use is under 5%.
And if you’re a legacy brand, mobile can be a powerful customer acquisition channel—if done right. Buying the right app and scaling it with your distribution and budget can deliver strong returns. Just don’t mistake popularity for durability.
13. Enterprise cloud infrastructure M&A grew 28% in deal volume year-over-year in 2023
Cloud is no longer optional—it’s core
Enterprise cloud infrastructure is now at the center of how businesses operate. In 2023, M&A deal volume in this space grew by 28% compared to the previous year. That’s a sharp and meaningful jump, especially in a market where many other tech verticals saw flat or declining deal activity.
Why the growth? Every company today needs to modernize its stack. Whether it’s moving workloads to the cloud, improving data storage and compute power, or managing hybrid environments—cloud infrastructure is critical. Buyers know this, and they’re investing heavily.
What this means for founders in cloud tech
If you’re building in cloud infrastructure—whether storage, orchestration, observability, or DevOps—you’re building in the right market. But here’s the thing: the bar is high. Enterprise buyers aren’t looking for basic solutions anymore. They want scalable, secure, and highly automated platforms that reduce cost and complexity.
To stand out:
- Build with multi-cloud compatibility. Buyers want flexibility.
- Prioritize compliance and uptime guarantees.
- Emphasize cost visibility—tools that help reduce cloud waste are in high demand.
Position your company as not just a tool, but an essential part of an enterprise’s long-term infrastructure plan. That’s how you command high multiples in M&A conversations.
How buyers should approach this surge
A 28% jump in cloud infrastructure deals means it’s time to act—before valuations go even higher. But don’t just chase logos. Focus on platforms that integrate well, improve operational efficiency, and have a clear developer adoption curve.
Look for traction within engineering teams. If developers love the tool, that’s your moat. Evaluate how easily the product fits into existing CI/CD pipelines or Kubernetes clusters. And make sure it has robust support for compliance, especially if you’re in finance, healthcare, or other regulated sectors.
If you’re a late mover in cloud, M&A may be your fastest route to catching up. Just make sure integration is feasible. Buying infrastructure without a plan to deploy it can backfire fast.
14. B2B software made up 48% of total tech M&A value in 2022
B2B is nearly half of all tech M&A by value
Almost half of all the money spent on tech M&A in 2022 went toward acquiring B2B software companies. That’s not just a preference—it’s a redefinition of what tech value looks like. Businesses are no longer treating software as a side project or a support tool. They’re investing in it as their competitive edge.
From CRMs and HR platforms to supply chain optimization tools and finance automation, B2B software is everywhere. It’s helping companies grow, cut costs, and stay ahead.
How B2B startups can ride this wave
If you’re a founder in B2B software, this is your validation. But it doesn’t mean you can relax. The market is crowded, and buyers are picky. To capture attention (and premium acquisition offers), you need to differentiate.
Focus on:
- Verticalization: Tailor your product to specific industries (like healthcare or construction).
- Speed to value: How fast does a new customer get results?
- Integration ecosystem: Make it easy to plug into other tools—especially ERPs and collaboration suites.
Don’t overlook customer success. In B2B, relationships matter. A high Net Promoter Score (NPS) or strong renewal rate can make or break a deal.
Also, make pricing predictable. Buyers don’t want complicated models. If you can tie pricing to usage or outcomes, even better.
For acquirers and strategists
This 48% stat means you should be allocating serious capital to B2B software deals. But with so many companies out there, how do you choose?
Start with customer reviews. Look at G2 or Capterra. Understand what real users are saying. Then examine product depth. Can it scale with a customer’s needs over five years, not just one?
Also, look for product-led growth (PLG) signals. If a tool spreads naturally within organizations—without heavy sales—that’s a major asset. It reduces CAC and boosts virality inside enterprises.
If you’re a platform player, acquiring B2B tools that fill product gaps can help you expand average contract value. Just make sure the UI and backend can be integrated without pain.
15. Only 6% of tech M&A value in 2023 came from social media and entertainment platforms
The decline of social-first M&A
In 2023, social media and entertainment platforms accounted for just 6% of total tech M&A value. That’s a steep fall from the dominance they once enjoyed. These platforms used to be acquisition magnets. Now? Not so much.
Why the drop? Several reasons. Monetization in social is getting harder. Trust and safety issues are rising. Ad revenue is under pressure from privacy laws. And user growth is flattening across many legacy platforms.
Buyers are wary. They’ve seen too many social apps rise fast and flame out just as quickly.
If you’re building in this space, here’s what to do
It’s not impossible to get acquired—but you need to rethink your strategy.
- Don’t chase raw user growth. Focus on engagement depth and retention.
- Build multiple monetization streams: subscriptions, tipping, commerce—not just ads.
- Position your platform as a community, not just a feed. Communities are more durable and offer stronger monetization per user.
If you’re targeting acquisition, aim for strategic alignment. Could your platform plug into a media network or help a brand reach a niche demographic? Think distribution, not just product.
Also, keep an eye on emerging channels. Live audio, creator tools, or interactive content may still hold interest—if they solve a real problem.
What this tells acquirers
This stat is your warning flag. Social media may still dominate headlines, but it’s no longer dominating M&A spend. That doesn’t mean there aren’t gems—it just means they’re rarer and riskier.
If you’re considering a play in this space, focus on platforms with active, paying users and real communities. Also, examine content moderation tech, privacy practices, and regulatory exposure. These issues can kill a deal during diligence.
Entertainment platforms, too, are tricky. The binge era is fading. Acquirers now want consistent engagement, creator loyalty, and monetization clarity—not just a hit show or viral moment.
In short, if you’re investing in social or entertainment, know the risks. The upside can be big, but only if you’re selective and strategic.
16. The median EV/Revenue multiple for enterprise tech M&A in 2023 was 6.4x
Enterprise commands premium pricing
In 2023, enterprise tech companies were acquired at a median EV/Revenue (Enterprise Value to Revenue) multiple of 6.4x. This is a strong multiple, especially in a market where buyers are increasingly focused on profitability and efficiency. It confirms that enterprise tech still commands premium valuations—when the fundamentals are sound.
A 6.4x multiple means acquirers are paying top dollar for companies that show predictable, recurring revenue and clear growth paths. For founders and investors, this multiple becomes a key benchmark when preparing for exit.
What this means for enterprise tech founders
If you want to attract buyers at or above this multiple, you need to prove three things:
- Recurring revenue: SaaS and subscription models are the gold standard. Buyers love predictability.
- Growth quality: It’s not just about how fast you grow—it’s how you grow. High-quality growth comes from strong customer retention, low churn, and net dollar expansion.
- Operational efficiency: Metrics like gross margin, sales efficiency, and customer acquisition cost play a huge role in how buyers assess value.
If you can show consistent growth with solid margins, buyers will be more willing to pay a 6x or even higher revenue multiple.
Also, be careful with overfunding. Too much capital at high valuations can make it hard to exit without taking a haircut. Focus on building a lean, metrics-driven business that impresses acquirers with both top-line and bottom-line strength.
What buyers should look for
For acquirers, the 6.4x median sets the playing field. But remember, this is the middle—not the ceiling. Companies with strong product-market fit, high net retention, and minimal churn can justify much higher multiples.
Before writing a check, validate three things:
- Customer health: Do clients renew year after year? Are there long contracts?
- Competitive edge: Is the tech unique? Is switching cost high?
- Upside potential: Can the buyer cross-sell or upsell additional services?
Multiples like 6.4x are only worth it when there’s long-term durability. That’s what separates smart M&A from expensive mistakes.
17. Consumer tech targets traded at a lower median EV/Revenue multiple of 3.1x in 2023
Half the valuation, twice the scrutiny
Now contrast this with consumer tech, which saw a median EV/Revenue multiple of just 3.1x in 2023. That’s less than half the enterprise average—and a clear sign that consumer startups are facing more skepticism from buyers.
This gap is driven by risk. Consumer companies often have unpredictable growth, less reliable retention, and depend heavily on marketing to survive. Add to that the challenges in monetization and rising customer acquisition costs, and you start to see why acquirers are cautious.
What consumer tech founders need to do
If you’re running a consumer business, you can’t rely on brand or user count alone. To push past that 3.1x multiple, you need to demonstrate monetization strength and customer loyalty.
Start by optimizing these levers:
- Retention: How often do users return? Daily active users (DAU) and monthly active users (MAU) matter—but so do week-over-week retention cohorts.
- Unit economics: Track CAC vs. LTV closely. If you’re spending more to acquire a user than they generate over time, buyers will walk.
- Revenue per user: Can you increase it via subscriptions, premium features, or marketplace fees?
Also, consider B2B angles. If your product serves consumers but has enterprise applications (e.g., wellness apps adopted by HR departments), highlight that. Hybrid models can boost your valuation.
How buyers should approach these deals
The 3.1x multiple reflects both opportunity and caution. For buyers, this is a chance to pick up solid consumer brands at a discount—but only if they have real, repeatable revenue.
Go deeper in your diligence. Ask:
- Where is the revenue really coming from?
- Are there power users who spend more?
- Is the growth organic or paid?
If you can identify consumer businesses with a strong niche audience, robust lifetime value, and defensible network effects, you can win big—especially if others are sitting on the sidelines.
But avoid chasing vanity metrics. An app with 10 million installs and no monetization engine is not worth even a 1x multiple. Look for businesses where each user generates value you can build on.
18. AI-driven enterprise software companies made up 33% of strategic tech acquisitions in 2023
AI is leading strategic M&A
In 2023, one-third of all strategic tech acquisitions were of enterprise software companies powered by AI. That’s a massive signal. AI isn’t just a buzzword—it’s becoming the core differentiator in enterprise technology.
From intelligent automation to predictive analytics and smart integrations, AI is redefining how software delivers value. Strategic buyers are moving fast to own capabilities that can set them apart in a crowded market.
How AI startups should think about M&A
If you’re building an AI-driven enterprise product, you’re already in the sights of potential acquirers. But to make yourself irresistible, you need more than just a machine learning model—you need applied value.
Here’s how to get there:
- Focus on business outcomes: Show how your AI drives efficiency, reduces risk, or increases revenue for enterprise users.
- Avoid black-box solutions: Enterprise buyers want transparency. Explainability matters. If users can’t understand how the AI works, they won’t trust it.
- Integrate deeply: Build plug-and-play compatibility with platforms like Salesforce, Slack, SAP, or Microsoft Teams.
Also, keep your data practices clean. Data quality and privacy compliance are critical in enterprise AI deals. Acquirers will walk away if your data pipelines aren’t airtight.
What this means for buyers
If 33% of strategic M&A was AI-related, that means you’re behind if you’re not already looking. But AI M&A isn’t about buying buzz—it’s about buying leverage.
Ask these questions during evaluation:
- Does the AI drive real business performance, or is it just a feature?
- Can this tech be applied across multiple verticals in your portfolio?
- Is the founding team strong on both product and go-to-market?
Also, think about speed. AI innovation cycles are short. A fast acquisition can give you a leap forward over competitors. But you’ll need a post-deal integration team ready to go. If you wait six months post-close to activate the product, the window may close.
Buying AI is about buying speed, precision, and scale. Get it right, and you’re not just acquiring software—you’re acquiring the future.
19. More than 80% of private equity tech M&A deals targeted enterprise companies in 2023
Private equity is betting on enterprise
In 2023, over 80% of private equity (PE) tech M&A deals were focused on enterprise companies. That’s a staggering majority—and it tells us exactly where institutional capital is heading in the tech world.
Private equity isn’t known for emotional investing. These firms make decisions based on hard numbers, operational scalability, and reliable returns. If PE is putting four out of every five tech dollars into enterprise software, infrastructure, and platforms—it’s because the model works.
Enterprise tech provides the kind of recurring revenue and margin profile that PE firms love. These companies often come with embedded users, sticky customer contracts, and reliable cash flow. That’s why they’re being bought, scaled, and bundled together in roll-up plays across verticals.
What this means for enterprise founders
If you’re leading an enterprise startup, don’t just think about strategic buyers—think about private equity. Your company could be the perfect anchor for a PE roll-up strategy or a growth equity firm looking to invest in efficiency.
To appeal to these types of buyers:
- Focus on profitability or a clear path to it. PE doesn’t usually buy unprofitable high-growth firms unless there’s a clear turnaround plan.
- Highlight renewal rates and upsell success. These are key levers in PE models.
- Show process maturity: From sales playbooks to onboarding flows—PE loves structured, repeatable systems.
You also want to demonstrate that your business is “bolt-on friendly.” If PE adds other tools to your stack, will it be easy to upsell across a shared customer base?
What PE firms should be mindful of
This surge in enterprise-focused deal activity means competition is heating up. Valuations are climbing. That’s why operational discipline post-acquisition becomes critical.
If you’re acquiring an enterprise tech firm, map out the 12-month operational plan early. Can you improve margins through better pricing? Can you automate support? Is there room for global expansion?
Also, think about future exits. Are you building a platform that will be bought by a bigger strategic player in three to five years? Or can you IPO it after optimization?
Enterprise tech isn’t just a hot asset class—it’s a platform for compounding value. But only if it’s run with focus, efficiency, and speed.
20. Cross-border enterprise tech M&A deals increased by 19% in 2023
Going global is back
In 2023, cross-border enterprise tech M&A rose by 19%, marking a resurgence in international deals after a few years of caution. With economies reopening and remote-first operations becoming the norm, companies are once again looking overseas to acquire innovation, talent, and new markets.
This jump shows confidence in integrating global operations and a shift toward scaling products across borders. Whether it’s a U.S. firm buying a European cybersecurity company or an APAC company acquiring a U.S. SaaS firm—cross-border deals are making a big comeback.
What international founders need to know
If you’re operating outside of major M&A hubs like Silicon Valley, this is your moment. Global buyers are actively scouting companies with strong regional traction and the potential to scale globally.
To attract attention:
- Local traction matters: Show dominance in your region. Market leadership in a local vertical builds credibility.
- Make your financials global-ready: Use GAAP or IFRS accounting standards, and prepare clear, clean data rooms.
- Support time zones and languages: If your platform can already support multilingual, multi-region users, it’s more appealing to global buyers.
And if you’re in a regulatory-heavy region, make compliance a feature. GDPR, data localization, and financial regulations—mastering these makes you more attractive.
How acquirers can make global M&A work
Cross-border deals require finesse. Cultural fit, legal frameworks, and integration planning are more complex than in domestic acquisitions. But the payoff is big—access to new markets, faster talent acquisition, and product diversification.
Before moving on a global deal, assess:
- Talent retention: Will the founding team stay? Is there a leadership pipeline?
- Market synergy: Can the acquired company help you expand regionally or build a new customer base?
- Post-deal operations: Will the tech stack integrate easily? Are there legal or compliance roadblocks?
Having local advisors helps. So does pre-deal alignment between leadership teams. If everyone’s aligned on vision and roadmap, you can turn a cross-border acquisition into a massive accelerator.
21. Consumer gaming M&A dropped by over 50% in total deal value in 2023
The gaming gold rush has cooled
After several years of red-hot activity in the gaming sector, 2023 saw a sharp reversal. Total deal value in consumer gaming M&A dropped by more than 50% year-over-year. That’s a huge decline for a market that once seemed unstoppable.
This drop isn’t just due to funding pullbacks. It’s tied to slower user growth, less predictable monetization, and a backlog of overhyped titles that didn’t deliver. Many buyers are now wary of making big bets in gaming without a proven revenue engine.
What gaming founders should consider now
If you’re running a gaming company, this stat is your cue to shift gears. Acquirers are no longer chasing downloads or graphics—they want retention, revenue, and community.
To stay attractive:
- Focus on LTV: Games that keep users engaged for months (not days) are worth more.
- Diversify monetization: In-app purchases alone aren’t enough. Explore subscriptions, merchandising, or creator-driven content.
- Invest in community: Games with active Discords, fan content, or e-sports ecosystems are more defensible.
Also, avoid burn-heavy models. High marketing spend and low ROI won’t impress anyone in this new environment.
And don’t wait for a mega-acquisition. Smaller, strategic partnerships or licensing deals may be more viable—and just as profitable long-term.
For buyers in gaming
This 50% drop may scare off some—but for savvy buyers, it’s a time to acquire undervalued IP or studios with strong bones.
Look beyond flashy trailers. Instead, examine:
- Session length and replay value
- Active paying users
- User acquisition cost trends
And focus on games with strong creator tools or modding ecosystems. These often extend game life and community engagement, which in turn boosts monetization potential.
If you’re an established studio or platform, now is the time to acquire high-quality teams and titles that couldn’t raise new rounds. With capital constraints, you can negotiate better terms and integrate top-tier talent into your existing pipeline.
22. 9 out of 10 of the largest M&A deals in 2022 were enterprise tech-focused
The top of the market is dominated by B2B
In 2022, nine of the ten biggest M&A deals in tech were aimed at enterprise companies. That’s an almost complete sweep—showing that when real money moves, it’s B2B tech that gets it.
These weren’t modest-sized deals either. We’re talking multi-billion-dollar buyouts across cloud software, cybersecurity, IT infrastructure, and digital workflow platforms. When a large public company or private equity fund decides to deploy billions, it’s almost always targeting companies that power business operations—not consumer products.
What founders should understand
This stat is a reminder that building in B2B isn’t just practical—it’s powerful. If your goal is a nine-figure or even ten-figure exit, you’re more likely to get there with enterprise buyers in mind.
To move toward this level:
- Get enterprise-grade early: Compliance (SOC 2, ISO), security, SLAs, and reliability aren’t “extras”—they’re table stakes for large exits.
- Land flagship customers: Fortune 500 logos signal enterprise readiness. Even one or two can increase your credibility significantly.
- Support procurement processes: Long cycles, custom SLAs, and proof-of-concept pilots can’t be avoided at this level. Embrace the process, build sales enablement collateral, and track conversion data to show progress.
And be patient. Enterprise buyers take time—but when they commit, they pay premium prices.
Insights for acquirers
If nine of the ten biggest deals were enterprise-focused, that tells you where the top of the market sits. You don’t get there by following consumer trends—you get there by identifying B2B platforms that are core to operations.
Look for platforms with:
- Deep integration into enterprise workflows
- Long-term contracts with renewals and upsells
- Tools that serve multiple departments (e.g., sales and ops)
Also consider M&A as a way to expand product footprint. Buying a horizontal solution that plugs into your ecosystem can create outsized value through bundling and cross-sell opportunities.
Enterprise isn’t flashy—but it’s where the serious value lies.
23. 77% of tech IPO-ready acquisitions (pre-IPO targets) in 2023 were in enterprise sectors
IPO or acquisition? Enterprise wins either way
In 2023, 77% of tech acquisitions involving pre-IPO companies were in enterprise sectors. These are companies that had scaled enough to consider going public—but chose, or were approached, to exit through acquisition instead.
This is a key point: even among the most mature startups, enterprise models remain the top acquisition target. Buyers see these companies as de-risked. They’ve hit product-market fit, established go-to-market motion, and built scalable operations.
For acquirers, this is like buying a public company—but before it gets expensive.
What it means for late-stage founders
If your company is IPO-ready, acquisition offers will come. But the real question is: will they be compelling enough?
To maximize your valuation and terms, make sure your fundamentals are solid:
- Profitability (or near): Public markets and acquirers alike want discipline.
- Clear story: Can you explain your product, growth, and market in 3 slides? If not, tighten it.
- Repeatable growth engine: Buyers want to see your pipeline isn’t based on one or two lucky partnerships—but a real system.
Also be aware of timing. Some of the best M&A outcomes come from striking a deal while momentum is strong, not when you’re already facing pressure to IPO.
Don’t just think about “exit or IPO.” Think about optionality—and prepare for both.
Advice for acquirers
Acquiring a pre-IPO enterprise company gives you scale, polish, and market credibility. But it comes with a price tag. These companies often have investors with big expectations, cap tables with preferred shares, and teams ready to go public.
Before pursuing this kind of deal:
- Understand the founder and board’s mindset. Is this a willing seller, or a pressured one?
- Evaluate IPO-readiness. If the team has already prepared audits, roadshow decks, and investor communications—you can integrate that into your IR or go-public pipeline.
- Move fast. Pre-IPO windows can shift quickly. If you’re interested, don’t drag out the process.
This kind of M&A isn’t just about buying product. It’s about buying maturity and market momentum.
24. B2B enterprise marketplaces saw 3x more M&A activity than B2C platforms in 2023
The rise of enterprise marketplaces
In 2023, B2B enterprise marketplaces had three times the M&A activity of B2C platforms. This is a major shift. Marketplaces have traditionally been associated with consumer transactions—food delivery, travel, goods. But now, enterprise buyers are placing bigger bets on B2B platforms that help companies buy software, parts, and services.
These platforms are sticky, scalable, and often monetize on both sides of the transaction. They create strong network effects—not from casual users, but from mission-critical buyers and suppliers.
Building a B2B marketplace? Here’s what matters
If you’re building a marketplace for enterprise use, you’re operating in a fast-growing, high-interest category. But it’s complex. Enterprise marketplaces aren’t like consumer marketplaces—you need to solve for procurement, compliance, invoicing, and service-level agreements.
To stand out:
- Focus on trust: Vet vendors rigorously. Enterprises want verified suppliers.
- Support integrations: Connect with ERPs and procurement systems. Make ordering seamless.
- Offer analytics: Help buyers track spend, trends, and vendor performance.
Revenue models should be flexible. Take rate is less common—consider subscriptions, feature tiers, or premium exposure for vendors.
And most importantly, reduce friction. Enterprise buyers will adopt new marketplaces only if you make life easier, not more complicated.
What buyers should think about
If B2B marketplaces are getting 3x the M&A activity of consumer ones, the smart move is to buy early. But not every marketplace is ready.
Vet the following:
- Supply-demand balance: Are there enough sellers for the number of buyers?
- Customer concentration: One big client isn’t a moat—it’s a risk.
- Revenue diversity: Are they earning from just transactions, or other sources?
Also, ask: can you plug this marketplace into your broader suite? If so, you can monetize across your product lines and create long-term stickiness.
Enterprise marketplaces are the new infrastructure layer for B2B commerce. Own the right one, and you’re not just riding a trend—you’re building a new business backbone.
25. Cloud-native enterprise firms had a 21% higher acquisition premium over consumer tech peers
Cloud-native earns a valuation edge
In 2023, enterprise companies built as cloud-native from the ground up commanded a 21% higher acquisition premium compared to consumer tech companies. That’s a significant edge—and it reinforces the idea that architectural choices and market focus both matter when it comes to M&A value.
Why the premium? Cloud-native firms offer scalability, efficiency, and speed. They run lean, scale horizontally, and integrate easily into modern tech stacks. For buyers, they represent faster time-to-value and easier deployment.
When these businesses are enterprise-focused, the benefits double. Enterprise buyers want secure, compliant, scalable tools—and cloud-native firms deliver just that.
What enterprise founders should do to earn this premium
If you’re building enterprise software, going cloud-native isn’t just a tech decision—it’s a growth and valuation strategy. But the label alone isn’t enough. You need to prove the advantages to buyers.
Make sure your infrastructure:
- Auto-scales: Buyers want platforms that perform well under growth without manual tuning.
- Is containerized and API-first: Cloud-native isn’t just about AWS—it’s about flexibility and integration.
- Enables rapid deployment: The faster a new customer can go live, the faster the revenue grows.
Also, think globally. Cloud-native companies with infrastructure on multiple clouds (or with edge capabilities) are more appealing to international acquirers.
And document everything. Buyers love clean documentation, self-service onboarding, and evidence that your architecture can support enterprise demands long-term.
How buyers can use this data
Paying a 21% premium might seem steep, but for cloud-native enterprise firms, it often pays off. These businesses are easier to scale, more reliable, and faster to integrate.
When evaluating a potential acquisition, consider:
- How quickly can we onboard customers using this platform?
- Does this architecture fit our existing DevOps workflows?
- Can we cross-sell this solution into our current base without complex setup?
The right cloud-native acquisition not only adds a product—it upgrades your entire infrastructure story.
26. The average time to close an enterprise tech M&A deal was 78 days in 2023
Speed matters—but so does structure
On average, enterprise tech M&A deals took 78 days to close in 2023. That’s just over two and a half months—relatively fast when you consider the complexity involved in due diligence, negotiations, and integration planning.
This timeline is a good benchmark for founders and buyers alike. It’s fast enough to keep momentum, but long enough to require serious preparation. Every day counts—and both sides need to come ready.
How founders should prepare for a 78-day process
If you’re seeking an acquisition, the worst thing you can do is wait until a deal is on the table to get your house in order. Speed gives you leverage—but only if you’re prepared.
Here’s what to have ready:
- A clean data room: With financials, contracts, customer metrics, and org charts.
- Tech documentation: Architecture overviews, API docs, security protocols, and scaling details.
- Key team agreements: Buyers will want assurance your key talent is staying post-acquisition.
You should also rehearse your deal narrative. Why is this the right time to sell? Why are you a great fit for the buyer? What growth levers exist post-close?
Being deal-ready increases your chances of staying on timeline and maintaining negotiating power.
What buyers should prioritize during those 78 days
Time kills deals. The longer negotiations drag, the more momentum fades—and the more risk creeps in.
To stay within the 78-day window, buyers need:
- Internal alignment: Ensure everyone from legal to product is on board and has bandwidth.
- Clear diligence checklists: Know what you’re looking for. Don’t get lost in minor issues.
- A strong integration plan: Acquirers who can show how they’ll activate the acquisition quickly tend to close faster.
Be transparent with the seller. If you need more time, explain why. But don’t stall without a reason—it damages trust.
Remember: the clock is always ticking in M&A. If you respect the process and move with focus, 78 days is more than enough to land a great deal.
27. Consumer tech M&A deals closed 20% faster but had 37% higher post-merger failure rates
Quick closes, slow pain
Consumer tech M&A deals may close 20% faster than enterprise ones—but they come with a catch. These deals have a 37% higher rate of post-merger failure, meaning integration problems, user attrition, or business model breakdowns occur more often after the handshake.
This is a cautionary tale. Moving quickly in consumer tech is appealing—fewer stakeholders, simpler contracts, and fewer compliance hurdles. But the long-term value often doesn’t stick.
Why founders must plan for post-acquisition survival
If you’re building a consumer product and hoping for a quick acquisition, remember: the real challenge starts after the deal. If your product, team, or user base doesn’t integrate well, your legacy could dissolve in a year.
To prevent that:
- Develop integration plans early: Talk to potential acquirers about how your tech, data, and user base will be merged.
- Retain your team: In consumer tech, culture and product quality often come from the original team. Fight to keep them motivated post-deal.
- Avoid overpromising: Don’t inflate metrics or growth potential. Acquirers will find out quickly—and you’ll lose trust.
Think long-term. Even if you’re planning to exit, your product should be able to survive—and thrive—within a new company.
What buyers should know
Fast closes are tempting—but costly if the asset doesn’t deliver. The 37% higher failure rate in consumer deals isn’t just bad luck. It’s often the result of insufficient diligence and weak integration planning.
Before moving fast, ask:
- Can we retain users post-acquisition?
- Do we understand how this product will evolve under our brand?
- Is there a clear team transition plan?
Also, make sure internal teams are aligned on expectations. Sales, product, and marketing should all agree on why you’re buying the company and what success looks like 6–12 months out.
Consumer tech can still yield massive wins—but only if you match speed with depth.
28. 58% of acqui-hires in 2023 were for enterprise tech engineering talent
Talent is the new battleground
In 2023, 58% of all acqui-hires in tech were made specifically to acquire engineering talent from enterprise startups. That’s more than half of all these deals—and it reveals something crucial: enterprise engineers are in high demand, not just for what they build, but how they build it.
Acqui-hires aren’t new. But this shift toward enterprise engineering shows companies are prioritizing stability, scalability, and system-level thinking over viral growth hacking. They want builders who understand infrastructure, security, integrations, and complex deployments.
What this means for enterprise founders and tech leads
If you’re leading a team of strong engineers in an enterprise setting, your people are more valuable than ever—especially if you’re working on deep tech, scalable backend systems, or mission-critical tools.
This also gives founders an alternate path. If your product hasn’t taken off but your team is elite, you can still exit meaningfully through an acqui-hire. But don’t wait until morale is low. Plan proactively.
To maximize your acqui-hire value:
- Highlight resumes and skills: Showcase your team’s experience with Kubernetes, cloud infrastructure, compliance, and system design.
- Package your team: Present yourselves as a high-functioning unit that can ship together. Acquirers love intact teams.
- Clarify retention plans: Show buyers you’ve aligned on post-acquisition roles and expectations.
And make sure everyone’s aligned. Acqui-hires fall apart when the team doesn’t want to move or stay.
What acquirers should look for in acqui-hires
If you’re trying to accelerate your enterprise roadmap, acqui-hiring strong engineering teams is a fast way to do it. But it only works if culture and mission match.
During diligence, ask:
- Has this team built for scale and compliance?
- Are they used to working within enterprise constraints (long sales cycles, integration requirements)?
- Do they want to stay and build, or just exit?
Also, don’t underestimate onboarding. Give them ownership early. Help them see how their work will continue to matter. The best acqui-hires become long-term leaders—if they feel supported from day one.
Acquiring talent is not just about plugging gaps. It’s about creating future leadership inside your enterprise stack.
29. Strategic buyers accounted for 71% of enterprise tech deals vs. 55% in consumer tech
Strategic intent drives enterprise M&A
In 2023, strategic buyers—companies acquiring to strengthen their own business lines—were behind 71% of enterprise tech deals. In consumer tech, that number was just 55%. That’s a 16-point gap, and it highlights a huge difference in intent.
Enterprise M&A is largely strategic. Buyers aren’t just investing—they’re absorbing new capabilities, entering adjacent markets, or deepening customer relationships. The deals are thoughtful, long-term plays designed to strengthen a product suite or remove a competitor.
What enterprise founders should understand about strategic buyers
If you’re looking to sell, you need to think like your buyer. Strategic acquirers aren’t just looking at your revenue—they’re mapping you to their roadmap. Your job is to help them make the case.
To do that:
- Align with their product strategy: If you can plug into an existing ecosystem or help fill a gap, say it clearly.
- Show mutual customer overlap: Highlight accounts you share. That’s easy synergy.
- Be integration-ready: Can your product be sold, supported, and managed by their existing teams with minimal retraining?
Also, understand how your product will be positioned post-deal. The smoother that story is, the easier it is for corporate development to get internal buy-in.
And know that timing matters. Strategic buyers move faster when a new product launch, regional push, or platform expansion is coming up. Position your value in the context of their goals—not just your metrics.
What buyers should keep in mind
If 71% of enterprise deals are strategic, your competitors are out there strengthening their stacks. Don’t get left behind.
But before you make a move:
- Evaluate long-term fit: Does this acquisition extend your platform’s life and relevance?
- Get cross-functional alignment: If product, marketing, and support aren’t aligned, your M&A will stall post-close.
- Think beyond revenue: Sometimes a $20M ARR company is more valuable than a $100M one—if it owns a key technology or distribution channel.
Enterprise M&A isn’t just a transaction. It’s an operating decision. Make it count.
30. In 2023, private equity-backed rollups were 3x more common in enterprise tech than consumer
Rollups are rewriting enterprise playbooks
Private equity firms executed three times more rollups in enterprise tech than in consumer tech in 2023. A rollup strategy involves acquiring multiple smaller companies in a similar space, consolidating operations, and driving margin through shared infrastructure.
Enterprise tech is perfectly suited for this. The markets are fragmented. Many firms have strong product but weak go-to-market. And the economics of recurring revenue make consolidation very attractive to PE buyers.
What founders need to know about rollup exits
If you’re running an enterprise startup, you might be part of someone else’s bigger plan. That’s not a bad thing. PE rollups can offer a fast, fair exit with the chance to stay on and lead a larger platform.
To get on the radar:
- Specialize deeply: Niche solutions are easier to plug into a larger suite.
- Show process maturity: Repeatable sales, clear onboarding, low churn—all signs of a roll-up-ready business.
- Don’t over-raise: Rollups work best when valuations are reasonable and returns can be driven by operations.
Also, be open to staying post-acquisition. Many PE firms are looking for operators. If you’re willing to run the bigger ship, you might go from founder to group CEO.
What PE firms should plan for
The rise in enterprise rollups isn’t just opportunity—it’s responsibility. You’ll need to operationalize fast, unify tech stacks, and keep cultural alignment across acquired teams.
Here’s what to prioritize:
- Integration planning: Start early. Choose a central platform and build APIs to connect satellites.
- Retention of key leaders: People matter. Keep founders motivated with equity or performance-based incentives.
- Customer communication: Be proactive. Let clients know how the rollup benefits them—faster innovation, better support, broader features.
The best rollups aren’t just spreadsheets. They’re strategic platforms built with care, discipline, and vision.
Done right, you don’t just build value—you build a new category leader.
Conclusion:
When we compare enterprise tech to consumer tech in the M&A world, the difference isn’t just in dollars—it’s in direction. Every single stat we’ve explored in this report points to the same truth: enterprise tech is driving the future of M&A.
