H1 2025 State of SaaS Report

Enterprise SaaS continues to anchor private equity (PE) dealmaking in 2025, despite global IPO activity remaining subdued. The latest State of SaaS Report from Forvis Mazars and PitchBook, Enterprise SaaS Powers PE Dealmaking While the Tech IPO Path Narrows, highlights a sector defined by resilience, AI-driven transformation and evolving exit strategies.

Despite elevated interest rates and ongoing policy uncertainty, investor appetite for SaaS remains strong. PE firms are adapting to capital constraints by pursuing high-quality, scalable platforms with durable recurring revenues and proven AI integration. The report notes that enterprise SaaS now represents more than half of global SaaS PE transactions, with valuation multiples reaching near-decade highs – underscoring sustained confidence in asset-light, AI-enabled business models.

An Irish perspective

Ireland continues to play an outsized role in the global SaaS story. The country’s concentration of cloud-native, export-oriented firms makes it a key hub for innovation and investment. According to Enterprise Ireland, 36% of Irish startups now embed AI at the core of their products, which is well above the European average. This mirrors broader market trends outlined in the report, where AI adoption is redefining both operational efficiency and customer engagement across the SaaS lifecycle.

Irish SaaS firms are particularly well-positioned to benefit from the sector’s evolving investment dynamics. Their agility, strong recurring-revenue models and global outlook align with what investors are prioritising in 2025: scalability, defensibility and profitability. PE sponsors continue to target Irish technology businesses as platforms for regional consolidation or cross-border growth, supported by Ireland’s reputation for technical talent and regulatory stability.

Global dynamics shaping SaaS dealmaking

Across international markets, enterprise SaaS remains the most active subsegment within the broader software landscape. While overall SaaS dealmaking has moderated in 2025, enterprise platforms continue to capture more than half of global SaaS PE transactions. The report highlights several global trends driving momentum in 2025:

• AI as a growth engine: Generative and agentic AI are reshaping product strategies and operational models. SaaS platforms that successfully integrate these technologies are commanding premium valuations and attracting strategic interest from investors.
• Liquidity through secondary buyouts: With IPOs delayed due to macroeconomic uncertainty, PE sponsors are increasingly turning to secondary exits and private credit to unlock value. These transactions offer flexibility and control over the timeline, making them attractive in today’s environment.
• Valuation resilience: Despite headwinds, median EV/EBITDA multiples have climbed to 23.2x, reflecting investor confidence in scalable, asset-light (i.e., low physical infrastructure) business models. This signals selective optimism, particularly for companies with proven customer retention, high switching costs and mission-critical products.
• Exit planning evolution: SaaS companies are exploring hybrid liquidity paths, including structured secondaries, strategic M&A and management-led deals. Boards and CFOs are increasingly aligning operating metrics with IPO readiness while preparing contingency plans for alternative exit routes.

Navigating the new investment landscape

As the second half of 2025 unfolds, both global and sector-specific factors will shape SaaS dealmaking and IPO activity. While interest rates and policy uncertainty remain headwinds, modest rate cuts and improving investor sentiment may bring renewed momentum. Enterprise SaaS is expected to stay at the heart of private equity investment as AI becomes integral to product strategies. Irish SaaS firms are well-positioned to benefit from this shift – combining agility, export focus and strong AI capabilities. The key will be striking a balance between innovation and financial discipline to ensure sustainable and scalable growth.

Investors are examining burn rates, revenue quality and scalability more closely than ever. The widening gap between EV/EBITDA and EV/revenue multiples underscores the importance of disciplined valuation analysis and robust financial governance in a competitive market.

Forvis Mazars supports SaaS clients across audit, transaction advisory and IPO readiness, helping them navigate this evolving landscape with confidence. Our cross-border teams bring deep sector expertise and practical insight to every stage of growth – whether preparing for a listing, securing PE investment or driving consolidation through add-on acquisitions.

Read the full report: H1 2025 State of SaaS – Enterprise SaaS Powers PE Dealmaking While the Tech IPO Path Narrows