Software Valuations and Insights Report | H1 2024

Alantra’s Software Valuations and Insights Report H1 24 provides a review of the market and perspectives on what we expect to see in H2.

Key report takeaways: 

• Public market valuations continued to demonstrate positive signs in H1 24 with increasing investor confidence in the macro-economic outlook, software revenue multiples experiencing stable growth, continued share price recovery, and signs of improvement in the IPO market
• M&A activity is showing early signs of recovery in H1 24; with global deal volumes up 9% vs H1 23 across PE and corporate deals and total deal values materially higher by 32% vs H1 23
• We continue to see evidence in 2024 of premium assets (profitable, scaled, high-growth, mission-critical services) attracting premium prices, as both private equity and strategics compete for the best businesses
• Whilst investors continue to value capital efficient businesses, we have seen a greater emphasis on growth, with revenue growth now ~2.5-3.0x more important than profit
• As we approach the last quarter of 2024, we are seeing investor optimism increase, driven by signs of inflation control, interest rate cuts and an increasingly positive economic outlook

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