As software M&A continues to adapt, Cavendish’s latest Software Update highlights key drivers in valuations and transaction activity. High-growth SaaS businesses remain highly sought after, and demand is intense for companies leveraging AI to enhance product offerings. 

Anthony Platt, Head of Technology at Cavendish, remarks, “AI is a focal point, especially in automation and integrations with large language models (LLMs), enhancing software capabilities across industries.”

Soben Durai, Associate Director at Cavendish commented: “This quarter, we delve into pivotal factors—strong KPIs, cross-border activity, and evolving private equity strategies—that are shaping the landscape. As valuations stabilise post-ZIRP, UK software companies demonstrate resilience, with typical private company ARR multiples between 4.5x and 6.5x expected to carry into 2025.”

Our report offers valuable data and strategic takeaways. Please contact Anthony or his team to discuss.