Software & Services M&A: Market Momentum and Key Trends

Far from slowing, M&A activity in software and services is showing signs of acceleration—and much of it is being driven by strategic tailwinds, not short-term noise. The last few months have confirmed that these sectors remain among the most resilient and active in the current market, and there’s increasing clarity regarding which sub-segments are seeing the most traction. At Grant Thornton Stax, we’re seeing this firsthand through record deal volume and a rising number of mandates across both buy-side and sell-side engagements.

While macroeconomic volatility, including interest rate uncertainty and geopolitical tensions, has impacted the broader M&A landscape, the software and services sectors remain notably resilient.



Indeed, the current softness in other sectors has driven increased focus—and competition—toward software and services. Within software too, vertical SaaS continues at pace, less at risk from AI disruption as we see in some horizontal sectors.

One of the structural reasons Grant Thornton Stax expects activity to remain high is the sheer size of the opportunity set. Today, there are over 3,000 PE-backed software and services assets, and more than 1,500 have been held for over three years. That’s a meaningful pipeline of companies likely heading to market over the next 12–24 months.

Simultaneously, the number of PE funds explicitly targeting software and services has grown significantly in the past five years. These funds are competing across size ranges and geographies, driving up demand—and increasing the pressure to differentiate through earlier, more strategic engagement.

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Trends We’re Watching

In addition to sector-level activity, we’re observing a few notable trends shaping how deals are being done:

More sponsors are engaging us for late-stage ownership growth work, even before a formal sale process. These projects help investors better understand where a business sits in its market, identify low-hanging fruit, and surface potential sell-side issues. The relative market POV—how a company stacks up against peers—is more important than ever.

We're increasingly brought in before management meetings to help sponsors get smarter, faster—particularly in competitive processes. The right POV early on is a differentiator, helping investors shape better questions, hypotheses, and value creation theses.

Growth planning is now core to diligence. Sponsors want to know not just whether an asset is sound, but how fast it can grow. We're seeing deeper analysis around pricing, sales efficiency, customer segmentation, and cross-sell. In many cases, diligence is becoming the new 100-day plan.

At Stax, we bring a unique view of this market. We support over 200 deals a year across software and services, working with investors across size ranges—from large-cap to growth equity. This allows us to see trends across the deal spectrum and understand both where competition is heading and how best to get ahead of it.

Importantly, we’ve seen a sharp rise in buy-side growth work—underscoring how investors are adapting their approach. This is particularly true in software, where the market's competitive dynamics make it essential to show up prepared and with a clear edge.

On the sell-side, volume has also surged. The last 2–3 months have been among our busiest ever in both software and services, and all signs point to that trend continuing. There’s a growing sense that now is the time to position quality assets for sale, particularly in subsectors where demand remains high.

Despite broader M&A volume being down YoY, software and services are outperforming. In a market where many dealmakers are delaying processes, strategic sponsors are leaning in—relying on sector insights, early prep, and differentiated diligence to win.

That’s where we come in. Whether you're looking to sharpen your thesis, prepare an asset for exit, or get a jump on your next buy-side process, we’re here to help.



Let’s talk.