E16: SaaS M&A Market Trends Q324

Summary

In this episode, Christian Hassold, host of In/Organic Podcast provides a mid-year market update for the M&A market in the SaaS industry. He discusses the macro conditions and factors influencing M&A activity, such as interest rates and FTC oversight. He also reviews his prediction on the increase in startups buying startups and analyzes four specific deals completed in the past six months. Overall, M&A activity is slightly up, but valuations are down, and deals are stalled due to disagreements on purchase prices. However, deals are getting done, likely at lower valuations

Takeaways

• M&A activity in the SaaS industry is slightly up, but valuations are down.

• Misalignment on purchase prices are causing deals to get stalled.

• Some deals are still getting done, both by PE's and corporate-sponsors, but at lower valuations

• SaaS Startups are not being acquired at the levels predicted, we examined 4 deals that have gotten done in Q3 to get a sense of the market

Chapters

00:00: Welcome

00:33: Taylor Swifts EU Invasion

02:53: Macro Conditions and Factors Influencing SaaS M&A

07:07: PE-backed and Corporate-backed Deals

10:01: Stalled Deals in SaaS and Market Dynamics 

14:05: Revisiting 2024 Startup M&A Predictions

17:53: Review of 4 Recently Announced Deals

Episode References

All In Podcast EP188

Pitchbook: The State of Enterprise SaaS M&A (Q324)

Carta: Q1 and Historical Startup Shutdowns

Carta: Startup Acquisition Metrics

Connect with Christian & In/organic Podcast

Christian's LinkedIn: https://www.linkedin.com/in/hassold/

In/organic on LinkedIn: https://www.linkedin.com/company/inorganic-podcast

In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured

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