Sponsor-backed take-privates have been dominating the software M&A landscape. A supply and demand look at what’s fueling the trend and how the changing macro paradigm might impact momentum.
Insightful as always! I think there is more to the story here. The value creation playbook for software is now very tangible, with a lot of low hanging fruit with AI led levers both for top
-line and ebitda. The macro env. being benign with the start of the rate cutting cycle makes the timing better with valuations still not 2020-21 like. And these companies have better FCF generation now vs earlier too. Everything that PEs would want to see.
This is a lot to write to say not much in the end….
Hence my comment..
Insightful as always! I think there is more to the story here. The value creation playbook for software is now very tangible, with a lot of low hanging fruit with AI led levers both for top
-line and ebitda. The macro env. being benign with the start of the rate cutting cycle makes the timing better with valuations still not 2020-21 like. And these companies have better FCF generation now vs earlier too. Everything that PEs would want to see.