Years go into building a software company, so it pays to know what yours is worth before a buyer writes to you with an offer. From 2015 to 2025, private software companies sold at a median of 3.39x revenue, across the 1,028 deals that disclosed a revenue multiple. The EBITDA median was 13.6x, across 382 deals. For the same EBITDA, a company in the top quarter of deals sold for at least two and a half times what one in the bottom quarter did. Where you land in that range depends above all on the size of your company, and then on the segment you sell into.
Software Valuation Multiples
These are private company multiples, taken from what buyers paid for privately held software companies. Those are the deals a buyer will compare yours with; listed software groups are valued by the stock market, which prices them differently.
Both multiples start from enterprise value (EV), the value of the whole business with its debt included. What you receive is what is left once the debt is repaid and any cash is added. EV/Revenue divides EV by a year’s revenue, and EV/EBITDA by a year’s earnings before interest, tax, depreciation and amortization. When buyers talk about an EBITDA multiple they usually mean adjusted EBITDA, with one-off items and owner costs taken out.
| Multiple | Sample (n) | 1st Quartile | Median | 3rd Quartile |
|---|---|---|---|---|
| EV/Revenue | 1,028 | 2.04x | 3.39x | 5.94x |
| EV/EBITDA | 382 | 8.6x | 13.6x | 22.0x |
Software Valuation Multiples by Year
So far in 2026, private software companies have sold at a median of 3.48x revenue (19 deals). The median was 3.18x in 2025 (49 deals), 3.66x in 2024 (56 deals) and 2.53x in 2023 (40 deals). Fewer deals disclose EBITDA, so in some years the median rests on very few. The 2024 EBITDA median was 11.9x on 17 deals. The 2026 EBITDA median so far is 14.9x on 4 deals, inside the range where the middle half of all deals from 2015 to 2025 sold (8.6x to 22.0x). The 2023 and 2025 EBITDA medians, on 5 and 9 deals, are below that range. For those two years, use the long-run median of 13.6x.
Median EV/Revenue multiples for software companies
Buyers lean on revenue multiples for software companies that put most of their money into growth and make little profit.
Software valuation multiples: EV/Revenue by year
Revenue medians peaked at 4.38x in 2022, then fell to 2.53x in 2023, the lowest year in the series. In 2024 and 2025 they were back near the long-run median of 3.39x.
The shaded band is the middle half of deals in each year. In every year it is wider than the gap between the best and the worst year’s median, so where a company sits within its year matters more than the year it sells in.
Median EV/EBITDA multiples for software companies
For mature software companies with steady cash flow and slower growth, EBITDA multiples are the usual measure.
Software valuation multiples: EV/EBITDA by year
EBITDA medians topped out at 16.0x in 2020 and have not returned to that level. The 2024 median, 11.9x on 17 deals, sits below the long-run 13.6x. Here too, in each year with 10 or more deals, the shaded band is wider than the gap between the highest and lowest of those years’ medians.
Company Size and Scale
Larger deals sold at higher multiples, on revenue and on EBITDA, at every step from under $5M to $500M and above.
Software valuation multiples: EV/Revenue by deal size
Software valuation multiples: EV/EBITDA by deal size
So where do you sit? For a first estimate, multiply your revenue by 3.39x, the market median. If the result falls between $5M and $100M, compare your company with its size band rather than with the market as a whole. On revenue, the median rose from 2.50x for deals of $5M to $20M to 3.60x for $20M to $50M, and only to 3.80x for $50M to $100M. On EBITDA it climbed steadily, from 9.5x to 12.7x to 15.3x across the same three bands.
The two multiples can put different values on the same company, and your margin decides which of the two comes out lower. In the $5M to $20M band, the two medians give the same value at an EBITDA margin of about 26%. Below that margin the EBITDA multiple gives the lower value. At a 20% margin, 2.50x revenue is the same as about 12.5x EBITDA, nearly a third above the band’s EBITDA median of 9.5x. An offer may be quoted on either multiple, so work out both before you judge it.
What is your company worth?
Tell us your MRR (monthly recurring revenue), revenue growth, churn and EBITDA margin. Within two working days, and in confidence, we place your company in the size band and segment it would sell in, and name the kinds of buyer with a real reason to pay most for it.
How to Value a Software Company: What Drives the Multiple
Within a segment and a size band, a buyer prices growth, recurring revenue, churn and margin. A median describes the typical company in its group, and these four measures are what place yours above or below it.
Growth
How fast revenue has grown over the last two or three years, and whether the pipeline supports the plan a buyer is asked to pay for.
Recurring revenue
The share of revenue under subscription or multi-year contract, which a buyer can count on after closing.
Churn
How much revenue, and how many customers, you lose each year.
Margin
EBITDA margin, adjusted for one-off costs and owner pay. It also decides which of the two multiples gives the lower value.
SaaS vs. On-Premise Software Multiples
Our figures cover Software-as-a-Service (SaaS) and on-premise vendors together, because the line between them has blurred. A vendor that started with installed licenses may now sell subscriptions and hosted or hybrid versions of the same product, so in one year it can earn both kinds of revenue. Our SaaS research gives the multiples for SaaS companies alone.
Cross-regional Valuation Differences
Among countries with at least 20 deals, United States companies sold at the highest median revenue multiple, 4.09x across 231 deals. That premium comes with deal size. The median US deal was $115M, against $26M for all deals with a revenue multiple. Larger deals sell at higher multiples, so compare a US company with its size band as well as its country. On revenue, Sweden, Norway and Australia come next; on EBITDA, Norway and Germany lead.
| Region | Deals with a revenue multiple | Median deal size, M USD | Median EV/Revenue | Median EV/EBITDA |
|---|---|---|---|---|
| United States | 231 | 115 | 4.09x | 15.7x (74) |
| United Kingdom | 217 | 25 | 3.69x | 16.0x (92) |
| Norway | 59 | 24 | 3.79x | 19.3x (38) |
| Japan | 51 | 7 | 2.04x | | |
| Italy | 51 | 14 | 2.58x | 9.6x (27) |
| France | 46 | 55 | 3.24x | 14.1x (14) |
| Sweden | 42 | 11 | 3.98x | 11.2x (20) |
| Germany | 32 | 37 | 3.13x | 19.1x (15) |
| Netherlands | 32 | 25 | 2.99x | 14.7x (14) |
| Australia | 30 | 27 | 3.71x | 10.0x (7) |
| China | 28 | 15 | 3.00x | | |
| Denmark | 25 | 21 | 3.03x | 14.0x (13) |
| Finland | 24 | 8 | 2.85x | 9.9x (10) |
| Canada | 20 | 27 | 2.48x | 11.1x (7) |
| Other | 140 | 22 | 3.38x | 9.8x (45) |
| Total | 1,028 | 26 | 3.39x | 13.6x (382) |
Software Valuation Multiples by Segment
We group software companies by what they sell and to whom. Vertical software is built for one industry, such as healthcare, financial services or construction. Horizontal software serves one business function across industries, such as finance, HR or cybersecurity.
| Vertical software | Horizontal software | All software | |
|---|---|---|---|
| Deals | 14,948 | 10,752 | 25,870 |
| Median EV/Revenue | 3.29x (591 deals) | 3.56x (422 deals) | 3.39x (1,028 deals) |
| EV/Revenue, middle half of deals | 2.00x to 5.73x | 2.07x to 6.66x | 2.04x to 5.94x |
| Median EV/EBITDA | 13.9x (242 deals) | 13.5x (136 deals) | 13.6x (382 deals) |
| EV/EBITDA, middle half of deals | 8.3x to 22.5x | 8.9x to 20.9x | 8.6x to 22.0x |
| Median deal size | $20.0M (3,432 deals) | $27.4M (2,723 deals) | $23.0M (6,217 deals) |
| Financial buyers | 33% of deals | 33% of deals | 33% of deals |
| Targets in the United States | 41% | 43% | 42% |
The segment a buyer places your company in matters more than whether it counts as vertical or horizontal software. The two groups sit close together at the median. Horizontal software sells for a little more on revenue and its deals are larger; on EBITDA the two are almost level. The spread inside each group is far wider than the gap between them. Among vertical segments, the median revenue multiple runs from 2.49x for media, entertainment and gaming software to 4.02x for travel and hospitality software. Among horizontal segments, it runs from 2.16x for collaboration software to 5.00x for legal, compliance and GRC software.
| Segment | Deals | Median EV/Revenue | Median EV/EBITDA | Median deal size |
|---|---|---|---|---|
| Healthcare and life sciences | 2,760 | 3.28x (111) | 10.7x (53) | $20.0M |
| Financial services and insurance | 2,056 | 3.32x (85) | 16.7x (46) | $30.6M |
| Industrial, energy and manufacturing | 1,616 | 3.29x (66) | 12.9x (17) | $27.8M |
| Supply chain, logistics and transportation | 1,375 | 3.15x (60) | 13.3x (25) | $16.0M |
| Real estate, construction and PropTech | 1,306 | 3.62x (58) | 19.6x (23) | $20.0M |
| Retail and e-commerce | 1,162 | 3.28x (29) | 11.4x (11) | $15.0M |
| Education (EdTech) | 1,077 | 3.96x (34) | 13.2x (10) | $19.3M |
| Media, entertainment and gaming | 806 | 2.49x (29) | 17.9x (6) | $19.8M |
| Government and public sector (GovTech) | 770 | 2.91x (45) | 11.1x (22) | $26.0M |
| Travel and hospitality | 686 | 4.02x (30) | 11.3x (9) | $14.1M |
| Other niche industries | 1,334 | 2.89x (44) | 9.9x (20) | $14.4M |
| All vertical software | 14,948 | 3.29x (591) | 13.9x (242) | $20.0M |
| Segment | Deals | Median EV/Revenue | Median EV/EBITDA | Median deal size |
|---|---|---|---|---|
| Sales, marketing and customer experience | 2,410 | 3.00x (72) | 13.0x (22) | $17.4M |
| Developer tools and IT infrastructure | 1,680 | 3.75x (49) | 11.2x (17) | $35.0M |
| Cybersecurity and identity | 1,431 | 4.17x (55) | 11.5x (21) | $43.5M |
| Finance, accounting and ERP | 1,171 | 4.19x (79) | 20.1x (27) | $26.3M |
| HR and workforce management | 1,170 | 3.38x (57) | 13.0x (12) | $24.0M |
| Data, analytics, BI and AI | 1,007 | 3.29x (27) | 13.5x (7) | $26.0M |
| Legal, compliance and GRC | 982 | 5.00x (40) | 16.2x (15) | $30.3M |
| Collaboration and productivity | 901 | 2.16x (43) | 10.5x (15) | $21.9M |
| All horizontal software | 10,752 | 3.56x (422) | 13.5x (136) | $27.4M |
Each segment’s name links to its own page, with multiples by company size within the segment, what moves a company up its range, and the buyers most active in it.
Who Buys Software Companies
More than 12,000 groups bought a private software company from 2015 to 2025. Funds and the platforms they back accounted for a third of the 25,870 deals. Serial acquirers, the 259 groups with 10 or more deals each, accounted for nearly a quarter. With that many buyers, the work in a sale is finding the ones who want yours most.
The most active buyers fall into three groups: software groups that buy and keep many specialist companies, large technology companies buying products and teams for their own platforms, and companies buying software for the industries they already serve.
Software groups that buy and keep
Large technology companies
Buyers for their own industries
The full ranking of strategic software buyers lists the rest, and our research on private equity funds and the platforms they back covers the financial buyers.
How One Approach Becomes Several Offers
When a buyer writes to you, it has chosen the moment. If you deal with that buyer alone, you negotiate on its timetable. One buyer’s offer tells you what that buyer would like to pay. When several buyers with a real reason to want your company make offers on the same information, you choose between the best offers and get the best price.
That is the process we run. We prepare the business, then approach the buyers with the most to gain from your product and your customers, such as a software group missing what you sell or a platform building in your segment. Offers come in by one deadline. While more than one buyer is still in the running, we negotiate the terms that decide what you take home, among them the earn-out (the part of the price paid later, if targets are met) and how long you stay on. We then take the deal to closing with the buyer you choose, with the same senior people from the first meeting to the end. If no offer is worth more to you than the company, you keep it.
Talk to Us
The time to talk to us is before you answer an approach, agree on a price or sign a letter of intent.
Before you reply to a buyer
If a buyer has written to you, send us your MRR, revenue growth, churn and EBITDA margin. Within two working days we tell you, in confidence, what companies like yours sold for and which other buyers have a real reason to compete for yours.
About Aventis Advisors
We advised CKSource, the company behind CKEditor, on its sale to Tiugo Technologies, backed by Providence Strategic Growth, and Symfonia, backed by Accel-KKR and MidEuropa, on its acquisition of Nefeni, so we know how software buyers and their private equity owners build their offers.
Aventis Advisors is an independent M&A advisory firm focused on technology companies, advising on transactions with typical enterprise values between $5M and $100M. Our guide to software company valuation explains how buyers value a business like yours. Get in touch with our team for an informal, confidential first conversation.
Methodology
The figures come from the Aventis Advisors software deal database (Mergermarket, acquirer announcements and our own research): acquisitions of control (50% or more where the stake is stated) of privately held software companies, announced from 2015 to 2025. Funding rounds, minority stakes and takeovers of listed companies are excluded. That leaves 25,870 deals, of which 1,028 disclose an EV/Revenue multiple and 382 an EV/EBITDA multiple. Deals under $5M disclose a multiple less often than larger ones, so the multiples lean toward larger companies: the median deal with a revenue multiple is $26M, against $23.0M for all deals with a disclosed size. The by-year section also shows 2026 to date, which these totals leave out.
Multiples outside 0.05x to 30x revenue and 1x to 60x EBITDA are treated as outliers and excluded. We assign each company to one segment by what it sells and to whom. IT services firms, marketplaces and other businesses that do not sell their own software are left out. The 170 deals for generic business applications count only in the all-software total, in neither the vertical nor the horizontal group. In the tables, a Deals column counts every deal; figures in parentheses are the deals behind each median, and an empty cell means the median did not pass the test below.
In the tables, we show a median from fewer than 10 deals only if it sits inside the middle half of the wider group; otherwise the cell stays empty. The year charts show every year and mark medians from fewer than 10 deals with hollow points. Ranges need 10 deals. Median deal size uses EV where disclosed, otherwise the disclosed deal value. In the segment tables it covers every deal that discloses a size. In the country table it covers only the deals with a revenue multiple. All figures are in US dollars. Financial buyers are funds and the platforms they back.
