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Playing the Long Game  


Software M&A:
Playing the Long Game  

B2B M&A activity in Q3 2023 fell to levels not seen since the Covid-impacted deal drought of 2020. Deal value fell nearly 17% YoY to $208 billion in the quarter, according to PitchBook data.1 The landscape for software deals has followed a similar trajectory throughout the year.2

In our experience, M&A slowdowns of this nature are eventually followed by booms in activity. The key question is whether deal activity is starting to bottom out and when deal volume will materially pick up. No matter the timing, Golub Growth is poised to help either side of an M&A transaction.

For acquirers, we can:

  • Reduce acquisition cost by providing debt capital.
  • Provide Leverage up to 2x pro-forma ARR.
  • Actively support M&A target searches through our extensive network of SaaS company relationships.

For companies looking to be acquired, we can:

  • Provide a prospective “staple financing” set of terms for you to share with acquirers, mitigating financing risk.
  • Make connections to Golub Capital’s network of growth equity and private equity firms.

More than anything, Golub Growth is a long-term partner. To date, we’ve provided over $1.8 billion in recurring revenue loans to support strategic acquisitions.3 50% of our investments are follow-on financings for existing portfolio companies,4 meaning we can support the first acquisition…and the next…and the next…

Please reach out to discuss how we can partner together for the long-term.

1. PitchBook Q3 2023 Global M&A Report
2. PwC Technology: US Deals 2023 midyear outlook
3. $ amount in M&A deals closed with recurring revenue loans since 2013.
4. Golub Capital has provided add-on financing to 50% of the software portfolio companies to which the Firm initially provided recurring revenue debt or equity financing, as of October 1, 2023.