Recent valuation data shows B2B Services valuations rising steadily as investors favor predictable profitability, making now an opportune time for owners to consider an exit.
Recent data shows B2B Services valuations rising steadily for those service firms which are tech-enabled as investors favor predictable profitability, making now an ideal time for owners to consider a strategic move—whether through recapitalization, acquisition, merger, or exit.
The B2B sector has seen a notable rise in investor focus. Our latest analysis shows that while B2B Software exit multiples have stabilized or declined slightly from peak levels, B2B Services valuations have climbed for tech-enabled. This is especially true for companies with $9M to $50M in recurring revenue, the sweet spot for many private equity and strategic buyers.
Key Valuation Insights
- B2B Software multiples peaked in 2021 at over 12x EV/Sales, driven by aggressive growth expectations and capital inflows. In 2024, multiples have normalized to 4x–8x as investors now demand a clear path to profitability, disciplined growth, and sustainable margins.
- B2B Services companies have benefited from this shift in priorities. Valuations have risen from 1.0x in 2020 to 2.3x in 2024, as investors increasingly value their strong recurring revenue, customer stickiness, and steady cash flows—especially in today’s uncertain macro environment and changing dynamics of AI vs. SaaS.
Why Act Now?
Global buyers and private equity firms remain eager to deploy record levels of dry powder, particularly into high-quality, recurring-revenue B2B businesses. However, with higher interest rates and rising uncertainty, this favorable window may narrow. Companies that recapitalize, acquire, merge, or exit proactively can take advantage of current market conditions and premium valuations.
Why Comps?
Comps is a trusted M&A advisor to B2B Software and Services companies. We help entrepreneur founders and investors in the $5M–$100M recurring revenue range achieve superior outcomes by offering:
- Deep industry expertise
- Accurate, data-driven valuation insights into how to command a premium offer both value and terms
- Access to a global network of active buyers and investors of all shapes, sizes, types
- Proven strategies to optimize deal terms
Whether you are exploring liquidity or planning for the next decade we can guide you through every step with confidence and precision.
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