Technology M&A Outlook

Quality Is Being Repriced

Technology transaction activity in the middle market remains selective rather than slow. Buyers continue to pay premium multiples for businesses with durable recurring revenue, strong net retention, and disciplined unit economics, while more cyclical or transitional models face longer processes and wider valuation ranges.

For owners considering a transaction in the next twelve to twenty-four months, the practical implication is preparation. Metrics that withstand diligence—cohort-level retention, gross margin bridges, and a defensible growth plan—now shape outcomes as much as headline growth.

Where We See Activity

Vertical-market software, data and analytics, and technology-enabled services remain the most consistent sources of both strategic and sponsor demand, with add-on acquisitions representing a growing share of completed transactions.