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:
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- 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.
