onlycfo.io · 2025-03-01 · 460d

The State of M&A in 2025

This article analyzes M&A market conditions for 2025, explaining why deal volume has declined from 2022 peaks due to interest rates, stock volatility, and macro uncertainty. It outlines three exit paths (IPO, strategic acquisition, PE acquisition, shutdown), emphasizes that most exits will involve PE, and provides tactical advice on timing, buyer selection, and deal preservation.

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Metrics in this report

Software Industry M&A Deal Volume

3667deals

peak

2022 peak for software M&A deal volume

Software Industry M&A Deal Volume

3360deals

average

2023 software M&A deal volume

Strategic Acquisition Market Share

33percent

average

Percentage of SaaS acquisitions by pure strategics (vs. 67% by PE firms)