Rebounding from a slow 2017, Enterprise software M&A is expected to pick up in 2018 in light of macro and micro economic factors. Rising interest rates can soften market valuations and cash repatriation will provide buyers's greater access to capital. This, when combined with the race to command market share, may lead to a very active deal environment for 2018.
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants