Middle-market software firms are confronting tightening liquidity as venture debt maturities coincide with elevated base interest rates across major economies.
Valuation Multiples Normalize
Revenue multiples for recurring SaaS models have recalibrated from historic peaks, compelling firms to prioritize EBITDA margin expansion over pure top-line revenue growth.
Strategic M&A Execution
Sponsors are opting for targeted add-on acquisitions to consolidate market share within specialized verticals, replacing aggressive broad-market portfolio expansions.