Tech M&A deals are not just about buying companies. They’re about buying revenue, product, talent, or even just future potential. And one of the most important questions during a deal is this — what’s the company worth?
1. Median EV/Revenue multiple for SaaS M&A deals in 2024 was 7.8x
Understanding the SaaS Premium
A 7.8x revenue multiple is not a small number. It reflects how valuable SaaS businesses have become, especially post-2020. Recurring revenue, predictable cash flows, and scalable infrastructure are the key reasons behind this high valuation.
Why It Matters
Buyers love SaaS because it makes growth predictable. Instead of one-time sales, SaaS companies generate monthly or yearly income. That’s money you can count on, and it’s what allows deals to push into high multiples.
But not all SaaS is created equal. Some get 3x, others get 12x. Why?
Here’s what makes the difference:
- Net Revenue Retention (NRR): If your customers stay and spend more over time, your business is seen as more valuable.
- Annual Recurring Revenue (ARR) Growth: Buyers look closely at how fast ARR is growing, not just the absolute number.
- Burn Rate: Efficient growth gets rewarded. If you’re burning cash without clear ROI, expect a haircut on your multiple.
Actionable Insight
If you’re preparing for an exit or investment, improve your key SaaS metrics:
- Focus on reducing churn. Even a 1% improvement in churn can increase your valuation significantly.
- Create expansion revenue strategies like upsells and cross-sells.
- Clean up your financials. Buyers love clean, GAAP-compliant numbers with monthly cohort breakdowns.
2. Median EV/EBITDA multiple for enterprise software M&A was 18.2x in 2023
Why EBITDA Still Matters
While revenue multiples get most of the headlines, serious buyers care about EBITDA. It shows the actual profitability of your core business operations, without all the noise.
A median of 18.2x EV/EBITDA in enterprise software shows just how premium these businesses are. These aren’t your flashy consumer apps — they’re mission-critical platforms businesses can’t live without.
What Drives This Multiple
Enterprise software companies:
- Serve large, stable clients.
- Have long sales cycles, but once closed, churn is nearly zero.
- Can command high prices due to complexity and switching costs.
This level of reliability means buyers are willing to pay a high multiple of profit, not just revenue.
Actionable Insight
To hit or exceed this 18.2x mark:
- Focus on operational profitability early. Investors want to see a path to strong EBITDA margins — ideally 30%+.
- Build long-term contracts with clients. Multi-year deals reduce revenue volatility and increase deal value.
- Keep your cost base lean. If you’re bloated on engineering or G&A expenses, trim the fat.
3. Cybersecurity M&A deals saw a median EV/Revenue multiple of 9.1x in 2024
Security Is No Longer Optional
Cybersecurity isn’t a “nice-to-have” anymore. For buyers, it’s a must-have. With more companies moving to the cloud, and with cyber threats rising, cybersecurity businesses are commanding steep valuations.
9.1x EV/Revenue is a sign that acquirers are willing to pay for peace of mind.
What Sets Cybersecurity Apart
- Urgency. Security decisions are often reactive and driven by fear.
- Budget resistance is low. Boards approve spending to avoid breaches.
- Tech stickiness. Once implemented, security tools are hard to remove.
Actionable Insight
Want to be in the 9.1x+ range?
- Focus on enterprise clients. SMB buyers don’t pay as much for security.
- Offer compliance or zero-trust models. These are in high demand.
- Build integrations. The more your tool connects with other systems, the harder it is to rip out — and the more a buyer will pay.
4. Fintech M&A transactions had a median EV/Revenue multiple of 5.5x in 2023
The Hype is Settling
Fintech had a wild ride. Post-2021, valuations hit sky-high levels. But now we’re seeing a more grounded reality — with 5.5x revenue multiples reflecting a more stable (and sustainable) market.
Why the Correction?
- Rising interest rates made payments and lending models less attractive.
- Regulatory scrutiny increased deal friction.
- Many fintech startups were pre-profit, hurting their multiples.
Still, 5.5x is healthy. It’s a clear signal that buyers still believe in fintech, just not at irrational valuations.
Actionable Insight
If you’re in fintech, here’s how to push your multiple higher:
- Prove compliance readiness. Buyers need to see audit trails, licenses, and risk controls.
- Build recurring revenue streams. Transactional revenue is fine, but subscriptions give you higher valuation.
- Diversify your product. If you’re a single-feature fintech app, expand to a platform model.
5. Median EV/EBIT multiple for IT services companies was 12.3x in 2023
Why Services Still Sell
Product businesses get most of the spotlight, but IT services are still quietly raking in good deals — especially those focused on cloud transformation, DevOps, or cybersecurity services.
A 12.3x EV/EBIT median reflects how steady, cash-generating, and acquisition-ready these businesses are.
What Makes Services Appealing
- Sticky client relationships.
- Strong gross margins (if managed well).
- Predictable EBIT, even if revenue growth is slower.
Services firms that blend tech enablement with recurring retainers are gold for buyers.
Actionable Insight
To maximize your exit:
- Productize your services. Packaged offerings are easier for buyers to price and scale.
- Reduce key-person risk. Document processes and build a leadership team.
- Lock in long-term contracts. The longer your service agreements, the more stable your EBIT appears.
6. AI and machine learning firms commanded a median EV/Revenue multiple of 10.4x in 2024
AI is the New SaaS
There’s a reason why AI companies are fetching high multiples. With median valuations at 10.4x revenue, the appetite is clear — buyers are betting on future dominance, not just current earnings.
Why AI Gets the Hype
- High growth potential.
- Massive addressable markets.
- Strategic value (even if revenue is early-stage).
However, not every AI company gets these numbers. Many don’t even have revenue. The ones that do — and are solving real business problems — are the ones hitting 10x+.
Actionable Insight
To be taken seriously in AI M&A:
- Show real use cases, not just demos. Buyers want adoption, not hype.
- Get enterprise traction. Proof that big companies pay for your product goes a long way.
- Protect your IP. Strong defensibility can raise your valuation by 2-3x.
7. Healthtech M&A deals averaged a 6.9x EV/Revenue multiple in 2023
Where Healthcare Meets Tech, Value Grows
Healthtech is a complex space. It blends regulatory hurdles with life-changing innovation. A 6.9x revenue multiple in 2023 reflects how valuable real-world, functioning healthtech companies have become — especially those improving care delivery, diagnostics, or health data interoperability.
What’s Driving This Valuation?
- Growing patient demand for digital tools
- Hospital systems looking to modernize
- Data-driven decision-making in care management
Most healthtech firms that hit or exceed this multiple have FDA-cleared products or integrations with EMRs (Electronic Medical Records). That’s where buyers see long-term value.
Actionable Insight
If you want to get into this valuation tier or above:
- Ensure you’re solving real problems, not vanity ones. Painkillers sell better than vitamins in healthtech.
- Secure pilots with major hospitals or insurers. Buyer confidence increases when you have institutional clients.
- Nail down compliance — HIPAA, SOC 2, or even FDA approvals depending on your product. These act as valuation multipliers.
8. Consumer tech businesses in M&A averaged a 3.8x EV/Revenue multiple in 2024
The Hits Are Fewer, But Still Big
Consumer tech is risky. Tastes change fast, and so does user loyalty. That’s why consumer tech businesses get lower multiples — the median being 3.8x revenue. But that doesn’t mean there aren’t big wins. It just means you need scale and loyalty.
The Good and the Bad
- The good: Viral apps, strong brand equity, and loyal user bases can break through.
- The bad: Low margins, high churn, and ad-dependence lower your value.
Consumer businesses that offer subscription models or ecosystem lock-ins tend to perform better in M&A deals.
Actionable Insight
To push above the 3.8x median:
- Build community-driven products. Community adds defensibility and stickiness.
- Focus on customer lifetime value (LTV). A high LTV/CPA ratio makes your business more attractive.
- Create a strong brand. Buyers are often paying just as much for your brand recognition as your tech.
9. Cloud infrastructure companies saw a median EV/Revenue multiple of 8.6x in 2024
The Backbone of the Internet Is Worth a Lot
Cloud infra isn’t sexy, but it powers everything. Companies in this space often deal with storage, compute, orchestration, or security — and buyers love them because they’re critical and hard to replace.
8.6x revenue is a strong median and reflects how strategic cloud infrastructure has become post-cloud explosion.
What Drives High Multiples Here?
- High switching costs
- Long-term contracts
- Tech that scales with usage
If you’re selling backend tools, APIs, or platforms used by other devs or SaaS companies, you’re likely in this category.
Actionable Insight
To command strong cloud infra multiples:
- Focus on uptime and reliability. Buyers scrutinize SLAs closely.
- Offer volume-based pricing. As customers grow, so do your revenues.
- Invest in developer experience. A great API or SDK increases adoption and valuation.
10. Edtech companies in M&A saw a median EV/Revenue multiple of 4.2x in 2023
Education Needs Are Growing, But Skepticism Remains
Edtech had a boom during the pandemic, but has since stabilized. At a 4.2x revenue multiple, it’s a decent market — but still met with caution due to long sales cycles and limited budgets.
Why the Caution?
- Schools and governments are slow buyers.
- Retention is low unless the product becomes core to learning.
- There’s high competition and commoditization in content delivery.
But the winners still command strong exits — especially those selling into corporate training, certification, or upskilling platforms.
Actionable Insight
To boost your Edtech valuation:
- Focus on B2B or B2G (government) sales instead of pure B2C.
- Develop proprietary curriculum or delivery frameworks.
- Integrate assessments or certifications. This improves retention and gives buyers more long-term visibility.
11. B2B tech firms averaged a median EV/Revenue multiple of 6.7x in recent deals
Serving Businesses Pays
B2B tech companies — whether SaaS, platforms, or tools — are enjoying solid M&A attention. With a median of 6.7x revenue, they sit in a healthy mid-range, showing consistent demand.
What Makes B2B Attractive?
- Easier to forecast revenue due to contract-based billing
- Lower churn compared to consumer-facing tech
- Higher customer value and longer deal cycles
Whether you sell CRM software, collaboration tools, or niche platforms for industries like logistics or HR, if you serve other businesses, you’re likely in this bucket.
Actionable Insight
To land a higher-than-average B2B tech valuation:
- Go deep, not wide. Specialization often leads to stronger margins and stickiness.
- Build strong customer success functions. Retention boosts multiples.
- Measure and showcase CAC payback period. A shorter CAC payback (under 12 months) impresses buyers.
12. Adtech firms in M&A had a median EV/Revenue multiple of 3.4x in 2023
Adtech: High Potential, High Risk
Adtech is a challenging category. While the potential is huge, with billions in global spend, it’s also crowded and heavily regulated. That’s why M&A valuations settle lower — with a median multiple of 3.4x.
What Hurts Valuations?
- Dependence on third-party cookies and platforms
- Low margins due to volume-based pricing
- Regulatory risk (GDPR, CCPA)
However, the right buyer will pay big if your adtech platform offers real-time optimization, privacy-forward features, or first-party data capture.
Actionable Insight
To rise above the 3.4x median:
- Show results. Buyers love platforms that have measurable ROAS impact.
- Move toward privacy-first models. Compliance = value.
- Develop strategic partnerships. Being embedded in agencies or publisher ecosystems helps boost M&A interest.
13. Median EV/EBITDA multiple across all tech M&A was 14.5x in 2023
The Benchmark of Benchmarks
This 14.5x EBITDA multiple serves as a foundational benchmark across the tech M&A world. It gives a strong baseline — not for what a specific niche is worth — but for what well-performing, mid- to large-cap tech companies typically fetch when profitability is in the picture.
Why EBITDA is a Favorite Metric
Buyers love EBITDA because:
- It focuses on core earnings
- It strips out accounting tricks
- It reflects operational health
A company with strong EBITDA margins, even if not hyper-growth, is highly attractive — especially to private equity firms and strategic acquirers looking for stable cash flow.
Actionable Insight
To get a multiple close to or above the 14.5x average:
- Improve margin efficiency. Cutting cost centers while maintaining growth sends a strong message.
- Avoid non-recurring revenue spikes. Buyers discount anything irregular.
- Clean up your financials. EBITDA adjustments are fine, but they must be clearly documented with backup.
Also, avoid running “at break-even” just for tax purposes. In M&A, showing real EBITDA strength makes all the difference.
14. Mobile app acquisitions averaged a median EV/Revenue multiple of 3.0x
The App Store Isn’t a Gold Mine Anymore
Mobile app businesses aren’t commanding the massive valuations they once did. With a median multiple of 3.0x revenue, buyers have become more cautious. The market is saturated, and users are harder to retain than ever.
Why App Valuations Are Lower
- Low switching costs
- High dependency on paid acquisition
- Short average user lifetime
That said, certain categories still win big — like health, wellness, subscription-based productivity, and mobile finance.
Actionable Insight
Want to beat the 3.0x average?
- Shift toward subscriptions over one-time purchases. Recurring revenue drives higher multiples.
- Track and share real engagement metrics. Buyers care about DAU/MAU, session duration, and cohort retention.
- Build cross-platform offerings. If your app is part of a web or desktop ecosystem, you’ll appear more scalable and defensible.
15. Median valuation for pre-revenue tech startups acquired was $42 million in 2023
Betting on Potential
Yes, even startups with zero revenue are getting acquired — and not just for acqui-hires. The median valuation of $42 million in these deals signals that buyers are placing bets on IP, talent, and go-to-market timing.
Why Buyers Take the Leap
- Strategic fit with existing product lines
- Access to proprietary technology or AI models
- Fear of missing out on early-stage market leaders
However, the bar is high. These valuations usually come from well-funded buyers or firms with aggressive roadmap goals.
Actionable Insight
If you’re a pre-revenue startup eyeing acquisition:
- Focus on building something unique — not just MVPs, but truly differentiated tech.
- Get pilot users or beta traction. Even anecdotal evidence of demand helps.
- Build a high-quality team. Acqui-hires often pay for engineers, but full acquisitions pay for vision and chemistry.
And don’t wait too long. Pre-revenue valuations tend to drop the moment your revenue becomes measurable but unimpressive.
16. Early-stage AI firms saw M&A median valuations at 12.1x forward revenue
AI’s Future Potential Has a Price
A 12.1x forward revenue multiple is significant. Buyers aren’t just paying for today — they’re paying for what’s coming next. This is where narrative, roadmap, and defensibility matter just as much as numbers.
What Qualifies as Forward Revenue?
- Signed contracts with future billing
- Committed pipeline from recurring users
- Highly predictable growth from pilot expansions
In early-stage AI, if your solution is embedded into client workflows or offers unique IP, the valuation goes up quickly.
Actionable Insight
To attract this level of buyer interest:
- Build a use-case-focused product. Generalized AI gets less attention than verticalized solutions (e.g., legal AI, retail AI).
- Document your path to monetization clearly. Show how pilots convert, what pricing looks like, and what revenue may be in 12 months.
- Secure defensibility — via patents, proprietary data, or closed feedback loops.
Also, build relationships early. AI acquirers — especially cloud giants and consulting firms — often scout startups long before they’re on the market.
17. Public-to-private tech M&A deals had a median EV/EBITDA multiple of 13.9x in 2024
When Wall Street Doesn’t See the Value
Sometimes, public companies are worth more in private hands. With a 13.9x EV/EBITDA median, public-to-private deals show how private equity and strategic buyers see value others miss — especially when companies are undervalued or misaligned with public investor expectations.
Common Targets for These Deals
- Companies with steady cash flow but slow growth
- Firms under activist pressure
- Public companies with operational inefficiencies
Buyers love these situations because they can restructure, optimize, and resell at a higher valuation later.
Actionable Insight
If you’re leading a public company, or investing in one that may go private:
- Track undervaluation metrics like EV/EBITDA vs. sector average.
- Maintain clean books and operational optionality.
- Build a roadmap for operational improvements. PE firms want to know how quickly they can increase EBITDA post-acquisition.
And if you’re a startup founder, knowing these trends helps. Many acquirers you’ll pitch to in the future have experience with public-to-private turnarounds and may apply those playbooks to you.
18. Vertical SaaS M&A deals showed median EV/Revenue multiples of 8.2x
Deep Beats Broad in SaaS
Vertical SaaS — platforms built for a single industry or niche (like legal, logistics, dental, etc.) — is becoming more attractive than generalist SaaS. At 8.2x revenue, these deals are outpacing broader B2B SaaS multiples.
Why Vertical SaaS Wins
- Deep domain expertise leads to better product-market fit
- Higher switching costs due to specialization
- Easier upsells and feature adoption
Buyers love vertical SaaS because it’s stickier and often under-penetrated, making it ripe for growth.
Actionable Insight
To maximize your vertical SaaS valuation:
- Build integrations with tools that are dominant in your niche.
- Offer templates, workflows, and features tailored for that specific industry — not just a general-purpose interface.
- Educate your buyers with thought leadership. In vertical SaaS, trust in your domain expertise increases both revenue and M&A interest.
Also, know your niche’s TAM (total addressable market) and explain how you’ll expand into adjacent verticals after the first.
19. E-commerce tech platform acquisitions saw a median EV/Revenue multiple of 3.7x
Tools That Power Online Sales Still Have Value
While the consumer e-commerce boom has cooled, the tools that power it—like payment gateways, inventory systems, headless commerce platforms, and logistics APIs—continue to attract strategic buyers.
At a 3.7x revenue multiple, these platforms sit in the middle ground. They’re not commanding sky-high SaaS valuations, but they’re still earning solid exits if they solve painful infrastructure problems.
Why Valuations Aren’t Higher
- Fierce competition in e-commerce tooling
- Thin margins in downstream customer base (merchants)
- Growth tied tightly to volatile retail cycles
Still, platforms with unique integrations or defensible network effects do stand out.
Actionable Insight
If you’re building or planning to sell an e-commerce tech platform:
- Focus on enabling enterprise-grade merchants. High-value clients improve your margins and credibility.
- Solve back-end pain points (like returns, fulfillment, or tax compliance) — not just front-end design.
- Show expansion potential beyond DTC brands — such as B2B commerce or marketplace integration.
And above all, offer measurable ROI. Buyers want to see how your platform boosts merchant revenue or slashes operational costs.
20. Digital health platform deals showed a 7.3x median EV/Revenue multiple
Health Meets Scale
Digital health platforms—those managing care coordination, telehealth, remote monitoring, or digital therapeutics—are achieving strong valuations. With a 7.3x revenue multiple, this category stands out for merging technology with long-term impact.
What Makes These Platforms Attractive?
- Ability to scale across large populations
- Integration into provider or payer ecosystems
- Data collection and analytics capabilities
More than just apps, these platforms become part of how healthcare is delivered, reimbursed, and optimized.
Actionable Insight
To move into or above the 7.3x median:
- Focus on interoperability. If your platform plays well with EHRs or insurance systems, your value goes up.
- Drive patient or provider engagement. M&A buyers want to see consistent usage over time.
- Publish real-world outcomes data. Show how your platform improves adherence, reduces hospital visits, or saves money.
Also, prioritize security certifications like HIPAA and HITRUST. These can swing valuation by millions.
21. Median deal size in tech M&A with a valuation multiple >10x was $950 million
Big Multiples Go to Big Companies
This stat is telling. When we talk about deals above a 10x revenue multiple, we’re usually not talking about $5M or $20M exits. These are major deals, with a median size just under a billion dollars.
Why Larger Companies Get Larger Multiples
- They’ve de-risked product-market fit
- They have brand recognition and global reach
- Buyers see them as platforms, not just products
Valuation multiple and deal size don’t always go hand in hand — but the correlation gets tighter as numbers climb.
Actionable Insight
If you’re targeting a high multiple and a large exit:
- Build a category-defining brand. Buyers pay more when you’re a leader, not just a player.
- Invest in scalability early. Technical debt may not slow growth, but it can drag down valuations.
- Develop partnerships and distribution channels. A strong ecosystem creates a moat that increases deal value.
And be prepared: these types of deals take longer and require more diligence. You’ll need strong legal, finance, and ops hygiene to pass scrutiny.
22. DevOps and infrastructure software deals saw a median EV/Revenue multiple of 7.9x
Behind-the-Scenes Tools Are in Demand
DevOps and infrastructure may not be flashy, but they’re foundational. These businesses keep engineering teams running, automate deployments, and secure cloud environments — and buyers know they’re not easily replaced.
A 7.9x revenue multiple shows how strategic these tools have become for acquirers looking to build developer ecosystems or integrate deeper into cloud stacks.
What Boosts This Valuation?
- Technical depth and high engineering adoption
- Usage-based pricing models that scale with teams
- Sticky integrations with AWS, Azure, GCP, etc.
This is a category where “quiet excellence” can lead to major M&A interest.
Actionable Insight
To increase your DevOps platform’s exit value:
- Focus on developer experience. If engineers love your tool, adoption spreads fast.
- Integrate with CI/CD, version control, and cloud platforms. Buyers love full-stack compatibility.
- Open-source components can be a plus — if you convert usage into revenue. Think freemium with clear enterprise tiers.
Also, document uptime and reliability metrics. In DevOps, 99.999% matters.
23. Data analytics companies in M&A had a median EV/Revenue multiple of 9.5x
The Power of Insight Pays Off
Data analytics is no longer just a back-office function — it’s at the heart of every smart decision businesses make. That’s why data analytics companies are securing a strong 9.5x median revenue multiple in M&A.
These tools fuel everything from product strategy to marketing performance and enterprise planning.
What Makes Them Valuable?
- Their role in mission-critical workflows
- Ability to drive downstream revenue impact
- Enterprise-wide stickiness once embedded
Many buyers are also looking for analytics companies to plug into broader AI or data infrastructure strategies.
Actionable Insight
To land near or above the 9.5x range:
- Develop dashboards and tools for C-level decision-makers. Top-down adoption increases stickiness.
- Prove integration depth. The more data sources you support, the harder you are to replace.
- Sell results, not just tools. If your analytics drive ROI, tell that story.
And never underestimate UI/UX. A clean, intuitive experience often closes enterprise deals faster than feature sets alone.
24. Median valuation multiple for bootstrapped tech startups was 4.6x revenue
Bootstrapped Can Still Be Big
Not every startup takes on VC money — and many bootstrapped businesses still get acquired for respectable sums. At a 4.6x revenue multiple, these deals often reward clean execution and profitable growth.
While this is lower than the venture-backed average, bootstrapped founders often walk away with more personal value because they own more equity.
Why Buyers Love Bootstrapped Companies
- Cleaner cap tables
- Leaner operations
- Often profitable or close to breakeven
But valuation is capped by growth rate and market visibility. Without massive scale or brand awareness, buyers are a little more cautious.
Actionable Insight
If you’re running a bootstrapped startup:
- Highlight profitability or efficient growth metrics — like CAC payback or revenue per employee.
- Build a clear M&A data room — even if you’re not for sale yet. It shows preparedness.
- Tell your origin story. Buyers love a founder who understands their product, market, and customer deeply.
You don’t need flashy funding rounds to create strategic value — just a great business that scales profitably.
25. Median revenue multiple for cross-border tech M&A was 6.1x in 2023
Global Buyers, Local Opportunities
Cross-border M&A has surged as companies seek growth outside saturated home markets. At a 6.1x median revenue multiple, cross-border tech deals show buyers are willing to pay a premium for international exposure — but only when the fundamentals are strong.
Why Cross-Border Deals Happen
- Strategic market entry (e.g., US companies buying in Europe or Asia)
- Talent and product acquisition in cost-efficient regions
- Risk diversification across economic zones
However, the complexity of cross-border deals — from legal frameworks to currency risks — keeps valuations from reaching top-tier levels unless the acquisition is mission-critical.
Actionable Insight
To attract international acquirers:
- Build local traction before scaling globally. Buyers want regional proof, not global ambition alone.
- Understand and prepare for international compliance — especially GDPR, data localization, or financial regulations.
- Make your IP structure clear and borderless. IP held in offshore entities can trigger red flags during diligence.
And be ready for long sales cycles. Cross-border deals typically involve more lawyers, more paperwork, and more internal buy-in from buyers.
26. Median EBITDA multiple in private equity-led tech M&A was 15.2x in 2023
PE Is Willing to Pay for Performance
Private equity buyers are not afraid of tech — as long as there’s clear profitability. A 15.2x median EBITDA multiple proves that PE-led deals aren’t just about cost-cutting anymore; they’re about scalable, profitable growth.
These buyers aren’t chasing hype. They’re backing companies that throw off real cash, have clear customer bases, and can scale under operational guidance.
What PE Looks For
- EBITDA margin above 20%
- Predictable cash flows and renewals
- Strong middle management, not just founder-led ops
PE firms often buy with a 3–7 year resale horizon. That means they’ll invest heavily upfront — but they want to know your business can withstand change and still print money.
Actionable Insight
To appeal to PE buyers:
- Clean up your books. Unclear or messy EBITDA numbers kill deals fast.
- Show where operational efficiency can increase post-acquisition.
- Build a playbook for growth. Buyers want to know how you’ll scale under their ownership.
Also, maintain cultural readiness. PE-led companies often get new leadership, new targets, and new accountability structures — prepare your team early.
27. Acqui-hire tech M&A deals typically had median valuations under $15 million
Talent Over Traction
Acqui-hires are common when products fail but teams shine. With median deal values under $15 million, these transactions aren’t about revenue multiples — they’re about getting top engineers, fast.
For founders, it’s not a glory exit — but it’s a soft landing that saves jobs and keeps reputations intact.
What Drives Acqui-Hire Value?
- Headcount and skill sets (especially engineering, AI, or product)
- Time-to-onboard (is the team tight-knit and ready to integrate?)
- Existing product or IP (sometimes absorbed into buyer’s stack)
These deals are fast, quiet, and often include retention bonuses instead of traditional equity payoffs.
Actionable Insight
If an acqui-hire is on your radar:
- Package your team, not your tech. Show cohesion, experience, and execution speed.
- Keep your IP tidy. Even if the product is dying, buyers may still want access.
- Talk early to potential acquirers. Big tech firms often keep “talent scouting” shortlists and move quickly.
And most importantly, manage your team’s expectations. These deals are more about career continuation than founder windfalls.
28. Cybersecurity M&A deals with ARR >$50M had a median multiple of 11.3x revenue
Scale Unlocks the Big Numbers
Cybersecurity is already a hot category, but once ARR crosses $50 million, valuations really start to pop. At 11.3x revenue, these businesses are seen as mature, scalable, and incredibly sticky.
Why Larger Cybersecurity Firms Win
- Land-and-expand models that create deep enterprise integration
- Direct relationships with CIOs and CISOs
- Tech that’s not only defensive, but proactive (e.g., threat hunting, zero-trust)
At this level, acquirers often aren’t just buying products — they’re acquiring platforms and brand equity.
Actionable Insight
If you’re approaching this scale:
- Invest in a security research team. Thought leadership drives trust and brand awareness.
- Expand into compliance, governance, or DevSecOps for higher wallet share.
- Build direct sales teams. Channel partners are helpful, but direct enterprise control raises valuations.
And remember: security buyers care deeply about performance metrics — detection rates, false positive ratios, and integration times all impact deal value.
29. Hardware-focused tech M&A deals had a median EV/EBITDA multiple of 9.4x
Physical Products Still Sell — But at a Discount
While software gets all the hype, hardware companies still get acquired — especially those in IoT, semiconductors, consumer electronics, or robotics. With a 9.4x EBITDA multiple, they’re solid targets when profitable and differentiated.
Why Hardware Gets Lower Multiples
- Lower margins due to COGS
- Inventory and supply chain risks
- Slower iteration cycles compared to software
Still, when hardware pairs with software or services (think Peloton, Ring, or Nest), value increases dramatically.
Actionable Insight
To increase your hardware M&A valuation:
- Focus on gross margin improvements — via design, logistics, or pricing.
- Add software components, subscriptions, or cloud connectivity.
- Secure patents, certifications, and regulatory approvals — these add defensibility.
And avoid being seen as “just a gadget.” Buyers pay more when your hardware enables a broader platform or network.
30. Vertical integration-driven tech M&A had a median revenue multiple of 5.2x
Owning the Stack Adds Value
When buyers aim to control more of the value chain — whether that’s through acquiring suppliers, platforms, or distribution partners — they’re willing to pay solid premiums. A 5.2x revenue multiple reflects this strategic intent.
Why Vertical Integration Is Popular
- Cost savings through operational control
- Greater product consistency and quality
- Easier customer acquisition and retention
This happens often in logistics tech, B2B marketplaces, manufacturing SaaS, and fintech infrastructure.
Actionable Insight
To be attractive in vertical M&A:
- Position your product as a critical piece of someone else’s stack.
- Build integration points with both upstream and downstream systems.
- Highlight efficiency gains. If your tech removes friction, waste, or margin loss — it’s a strategic asset.
And when you pitch your company, tell the integration story clearly. The buyer should see your business as the missing piece they’ve been looking for.
Conclusion
Valuation multiples in tech M&A aren’t just abstract numbers. They’re signals — from buyers, markets, and strategic players — about what’s truly valuable today. Whether you’re building a SaaS business, cybersecurity tool, or healthtech platform, understanding how these multiples work gives you leverage.
