Tech and Software

Statistical and forecast and valuation data

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SOFTWARE OUTLOOK

AI and machine learning (ML): The AI-driven software market is expected to grow by 35–40% CAGR, with demand for AI-powered analytics, customer support, and workflow automation.                                                                                                               

Strategic acquisitions: Larger companies are targeting AI, cybersecurity, and data analytics firms to expand their capabilities.

EBITDA Multiples:

    • Smaller firms: 10x – 20x EBITDA.
    • Mid-market companies: 20x – 30x EBITDA.

High-growth SaaS or AI firms: 30x+ EBITDA, driven by growth potential

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TECH OUTLOOK

    • The US tech industry is projected to reach $2.3–2.5 trillion by 2025, growing at a CAGR of 7–9%.
    • Software and services dominate the sector, accounting for over 50% of the total market.

EBITDA Multiples:

    • Smaller firms: 15x – 25x EBITDA.
    • Mid-market firms: 25x – 40x EBITDA.
    • High-growth SaaS or AI firms: 40x+ EBITDA, especially if they dominate a niche or show hypergrowth.
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