The SaaS Roll-Up Playbooks

Strategies for Creating Value Through Consolidation

With software valuations reset and deal activity remaining strong, private equity sponsors and strategic buyers have an opportunity to build scaled platforms at more attractive valuations. At the same time, AI is reshaping software economics and competitive positioning. We examine three distinct roll-up playbooks through the examples of Constellation Software, Bending Spoons and Visma, and what these approaches mean for investors deciding where and how to consolidate.

1. Why SaaS Consolidation? Why Now?

The SaaS market is entering a new phase of consolidation, creating a compelling opportunity for well-capitalized buyers — private equity sponsors and strategic acquirers alike — to strengthen existing SaaS portfolios and build new, scaled platforms at reset valuations, positioning private equity sponsors in particular for stronger exits along the way. Three dynamics are driving this shift:

Valuations have reset. Public SaaS multiples have fallen ~60% from their 2021 peak, with SEG’s index down to 3.6x EV/TTM revenue in Q1 2026,¹ reducing the cost of acquiring SaaS businesses.
AI can be a tailwind, not just a threat. AI is reshaping product economics and competitive positioning; subscale vendors that lack the capital, data, and technical capabilities to compete on AI-native features risk falling behind, while scaled consolidators are positioned to capture the upside.
M&A has become one of the dominant levers for value creation. SaaS deal volume is up 24% year-over-year (“YoY”),² as sponsors and strategic acquirers turn to bolt-on acquisitions to strengthen portfolios and deploy capital into new, scaled platforms at reset valuations.

The case is especially pressing for PE: more than 27% of PE-owned SaaS assets have been held 5+ years, and with organic growth alone insufficient to achieve target returns, M&A has climbed to sponsors’ #1 value-creation priority for 2026, up from #8 in 2025³ — a faster path to both growth and exit.

Figure 1 – SaaS Valuations Have Reset Significantly From Peak Levels

Annual Median EV/TTM Revenue Multiple

Source: Software Equity Group (“SEG”), 2026 Annual SaaS Report and 1Q26 Quarterly SaaS Report.

Figure 2 – SaaS M&A Activity Remains Near Record Levels Entering 2026

Source: SEG, 1Q26 Quarterly SaaS Report.

These dynamics are reflected in a sharp rise in SaaS deal activity (Figure 2). The market is giving rise to several distinct approaches to SaaS consolidation, spanning decentralized compounding, centralized transformation and growth platform building.

These approaches provide useful reference points for understanding how different consolidators are pursuing value creation.

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Footnotes:

1: Software Equity Group, “2026 Annual SaaS Report” (2026) and “1Q26 Quarterly SaaS Report” (2026).

2: Software Equity Group, “1Q26 Quarterly SaaS Report” (2026).

3: FTI Consulting, “Private Equity Value Creation Index 2026” (2026).

The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals.