The Enterprise Stack – Q3 2021

Julie Langley, Richard Latner, Albert Kouzminski, Vinay Saraiwala

Following a strong Q2, the path to recovery from the global pandemic is increasingly clear on account of re-opening economies, record-breaking stock markets and an abundant supply of cheap capital fueling investor appetite.

The Enterprise Stack - Q3 2021

Deal making surged in Q3 with volumes up more than 20% on Q2 2021. The quarter witnessed c.500 transactions to further accelerate the adoption of technology in the wake of Covid-19.

As has been the case for many quarters, private equity continues to dominate with Constellation Software being the only strategic to feature in our top 10 most acquisitive buyers in the last 12 months.

Valuation multiples are also consistently strong this quarter with SaaS businesses trading at a median of 16.8x revenue and 20.1x EBITDA in Q3 2021.