13.02.2026
Translink 2025 SaaS Valuation Index reveals drivers redefining the M&A playbook
The SaaS M&A market has reached a turning point. The anticipated year-end rally of 2025 didn’t take shape, and deal volume has slowed to its lowest since 2021. But this is not a retreat – it’s a strategic recalibration.
Our newly released Q4 2025 SaaS Valuation Index reveals what’s really driving value in a market where dealmakers are getting more selective, not less active. While median valuations for small-to-mid-market companies remain stable at 3.0x NTM revenue, a significant valuation gap is widening.
Key insights from the report include:
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A market slowdown: Deal volume saw an 8.73% year-on-year decline.
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The new value drivers: Why AI monetisation and revenue quality are now as important as the “Rule of 40”.
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Regional divergence: Europe’s M&A market is showing surprising resilience compared to the US.
View the full report here: https://translinkcf.com/wp-content/uploads/2026/02/Translink-CF-SaaS-Valuation-Index-Q4-2025_FINAL.pdf
