NEW YORK, Aug. 29, 2023 (GLOBE NEWSWIRE) -- FE International, Inc., the global market leader in mid-market technology mergers and acquisitions (M&A), today released its 2023 SaaS Mid-Year Report, focusing on the industry’s rapidly changing landscape, increase of SaaS M&A volume, near record-levels of Private Equity (PE) dry powder, and the stabilization of SaaS M&A multiples. The report provides an economic outlook heading into 2024 after addressing the issues facing companies and investors right now.
FE International reports the market is recovering well, with transaction volumes increasing more than 22% in 2023 compared to Q4 2022. This has been a pivotal year for the Artificial Intelligence market with Generative AI bucking the trends plaguing other sectors. Global funding for 2023 YTD has quadrupled all funding in 2022. The increase in M&A activity juxtaposed with a slowdown in venture capital funding highlights how entrepreneurs are increasingly turning to M&A to raise growth capital and/or create liquidity.
"It’s hard to ignore the commotion AI has caused across all industries and M&A is no exception. Investors are taking chances on generative AI as it consistently thrives in this inconsistent market,” said Thomas Smale, CEO of FE International. “We’re seeing AI rebound positively and are looking for the same prospect to trend across other SaaS sectors as well.”
Global Private Equity capital remains at a record high, with nearly $4 trillion ready to be deployed. With the volume of FE’s activity in the space more than doubling since 2020, SaaS/Software businesses look to continue to be more than 50% deal flow for the year to come. FE’s SaaS deals have largely been concentrated in the sectors of Sales & Marketing Software, Business Analytics Software, and Business Process Optimization.
FE International, a leader in mid-market M&A spanning digital media and other industries, delves into the state of public market performance in the new report, including the impact of rising rates and acquirers taking a more cautious approach to taking on debt to fund M&A transactions. The mid-year 2023 assessment of SaaS valuations further reveals that inflation has proven more pliant and fallen faster than many anticipated as the labor market holds strong with U.S. unemployment hovering near historic lows.
The 2023 SaaS Mid-Year Report is now available for download: click here.
About FE International:
Founded in 2010, FE is known for its extensive network of pre-qualified international investors. Its team includes experts in exit planning, valuation, accounting, legal and more. FE serves clients worldwide with headquarters in New York and regional offices in Miami, San Francisco and London. It was named one of The Americas' Fastest Growing Companies in 2023, 2022, 2021 and 2020 by The Financial Times and is also a five-time Inc. 5000 company. For more information, visit www.feinternational.com
Media Contact:
KCSA Strategic Communications
Kaitie Cothron / Michael Ganci
FEI@kcsa.com
