Markets
Jason Lemkin: 'Who Will Buy The SaaS Companies?' — PE Firms Now Hyper-Selective, Vertical SaaS is 46% of All M&A
SaaStr's Jason Lemkin analyzes the SaaS M&A landscape: Thoma Bravo made 9 of the public SaaS acquisitions and is buying only category leaders with AI integration stories and clear paths to operational improvement. Vertical SaaS represents 46% of all SaaS M&A, as buyers want niche solutions with embedded workflows and high switching costs. PE offers that used to come at $20M ARR growing 40% now require hot vertical positioning (healthcare IT, fintech, cybersecurity), deep AI integration, and Rule of 40+ with path to 40%+ EBITDA margins.
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