What assets like yours are clearing at.
Benchmarks for middle-market technology transactions, with the methodology set out in full so you can judge how much weight they deserve.
Revenue multiples by vertical
Median trailing-revenue multiple for middle-market assets. Divestitures.com analysis of publicly reported transactions, through Q2 2026.
| Vertical | Median | Range | EBITDA | Active acquirers |
|---|---|---|---|---|
| AI & ML Platforms | 6.5x | 4.5x – 11.0x | 16x | Strategic acquirers, growth equity |
| Cybersecurity | 5.4x | 3.8x – 8.0x | 15x | Platform strategics, sponsor-backed consolidators |
| Vertical B2B SaaS | 4.6x | 3.2x – 7.0x | 13x | Private equity, vertical consolidators |
| FinTech Infrastructure | 4.2x | 3.0x – 6.5x | 12x | Payments strategics, financial sponsors |
| Healthcare Technology | 4.0x | 2.8x – 6.0x | 12x | Healthcare strategics, specialist sponsors |
| HR & Workforce Tech | 3.4x | 2.4x – 5.0x | 11x | HCM platforms, private equity |
| Enterprise Software | 3.1x | 2.2x – 4.5x | 10x | Private equity, legacy consolidators |
| EdTech | 2.6x | 1.8x – 4.0x | 9x | Education strategics, family offices |
Where these numbers come from.
Compiled from technology transactions with publicly disclosed terms in the $50M–$500M enterprise value range. Multiples are stated on trailing revenue for recurring-revenue businesses. Private carve-outs regularly transact outside these ranges. Perimeter, retention and buyer competition move the number more than sector does. Treat these as orientation, not as a valuation.
Source: Divestitures.com analysis of publicly reported transactions. These are not proprietary transaction records and not an appraisal. Any single asset can and does transact well outside these bands.
A benchmark is not a valuation.
Perimeter, retention and the number of credible bidders explain far more of the variance in achieved price than sector does. A specific answer for a specific asset means looking at the asset.
Six things shaping middle-market technology M&A.
Carve-out supply is rising
Corporates are shedding non-core software divisions to redirect capital toward AI. That widens the field for sellers who are prepared and punishes those who are not. Buyers can afford to be selective about which processes they engage with.
The AI premium is narrowing to real moats
Assets with proprietary training data and defensible model IP still clear at a premium. Products that wrap a public model no longer do, and buyers now diligence the difference directly.
Retention decides the multiple
Net revenue retention is now the strongest single predictor of the multiple achieved in this size band, with a wider spread than sector, growth rate or gross margin.
Sponsors hold record dry powder
Committed but undeployed private equity capital remains at historic highs, with a heavy technology allocation. Well-positioned middle-market assets usually draw several qualified bidders.
Cross-border interest keeps widening
European and APAC sponsors and strategics are active in the US middle market. A properly run process reaches them. A quiet conversation with one familiar buyer does not.
Clean assets are getting clean terms
Earnouts appear less often in competitive processes. Sellers who arrive with audited financials and a clear standalone cost base convert more of the headline number into cash at close.
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