Enterprise Software : 2024 review
We focus on deals with enterprise value under €200M in France and in Europe
Key takeaways of our insights
- M&A volume increased sharply in 2024
- PE activity remains strong stable in value
- Corporate M&A gained momentum, which the number of deals in Q4 up 20% QoQ
ERP and CRM remained the major segments: they account for the highest share of M&A activity in 2024
European Enterprise Software market reached approximately $72Bn in 2024.
Key trends & Drivers
1. Cloud Migration & Saas adoption
2. ERP & CRM dominate
3. AI Integration & ERP modernization
4. Digital Sovereignty & Regulation
5. Vibrant European Ecosystem
Outlook & Challenge
Strong growth expected: 2024 - 2023 CAGR between +7% and 12% depending on segment
Private Equity activity is rising, with increased interest in profitable mid-sized Saas firms
Challenges include implementation costs, training needs, regulatory fragmentation, infrastructure gaps and cultural reistance to change
Valuation remains high
1. Fundraisings
Mean EV/ Sales: 4.4x
Mean EV/ EBITDA: 8x
2. Exit valuation
Mean EV/Sales: 5.6x
Mean EVEBITDA: 14x
With the right combination of compliance, cloud-native offerings, and domain expertise, European software vendors are well-positioned to grow and lead within their ecosystems.
M&A can transform many businesses. In transactions, we observe the longer the duration, the greater the risk of asset depreciation.
Perforing during acceleration is a question of preparation and anticipation. Managers must take time to think, plan and forecast.