The Enterprise Stack – FY 2021

Julie Langley, Richard Latner, William Garbutt, Vinay Saraiwala

A sustained demand for AI and data-driven technologies in 2021 ensured both private and public markets were increasingly active and drove more M&A activity in the Enterprise Software sector than ever before.

The year rounded off on a high with total disclosed deal values in Q4 reaching close to $100Bn with CG Results having completed seven enterprise software transactions in the last twelve months.

The need to drive enterprise protection, solve global supply chain challenges and strengthen digital and multi-cloud capabilities drove investors to pay premium multiples for both innovative startups and dominant incumbents.

CG Results’ public SaaS index shows a strong median valuation at 15.1x revenue and 27.4x EBITDA. With valuations strong, and investors and acquirers now confident operating in a virtual environment we expect a continued surge in M&A and private equity activity as we enter 2022.