Software is the backbone of modern business models – regardless of industry and region. M brings structure, focus, and new perspectives for technology-driven companies.
The software market is constantly evolving. New technologies, frameworks, and platforms emerge every year, while regulatory requirements, security standards, and customer needs are continuously growing. Cloud, SaaS, AI, Cybersecurity, Low-Code – hardly any market is as innovation-driven and at the same time so dependent on long-term development power and technical consistency.
Especially medium-sized software companies are facing crucial decisions today. Scaling pressure, shortage of skilled workers, technical debt, increasing customer requirements, and last but not least the question of their own succession are moving into focus. M is thus becoming a strategic option – for growth, partnership, or an orderly entrepreneurial handover.
starkpartners has been supporting owner-managed software companies, platform providers, managed service providers (MSPs), and technology-oriented service providers throughout the German-speaking region for many years in the context of tech MA. Whether individual industry solutions, ERP modules, SaaS offerings, middleware, web applications, security solutions, industrial software, CRM and collaboration tools, e-commerce and payment solutions, cloud infrastructure software, or data-driven applications (analytics AI) – we understand the technology level and its economic logic.
Our clients appreciate that we not only abstract source codes but also penetrate business models. We know what product maintenance means, how MRR structures develop, what it means to lead development teams and support customers between version levels. And we also know: A software company is often more than just code – it is grown loyalty, strategic thinking, and technical responsibility.
The M market in the software sector is in high demand – but has also become more selective. Strategic buyers, large platform companies, and increasingly specialized private equity investors are looking for software companies with a product focus, clear customer benefits, and well-structured processes. Providers with stable MRR/ARR structures, their own IP, a clear roadmap, and reliable customer loyalty are being sought.
Particularly attractive are providers with SaaS models, platform-independent architecture, industry-specific functional depth, and international scalability. At the same time, it is becoming clear: Pure revenue growth is no longer enough – what is needed is a sustainable technology base, documentation, DevOps capability, and a comprehensible go-to-market strategy. Those who create clarity here have the best chances of a structured M process with real prospects.
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We are Focused on Medium-Sized Companies in Transformation and Special Situations
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Frequently Asked Questions about Corporate Succession in the MSP/Software Segment (Tech MA)
Whether it's valuation, succession, or sale, most entrepreneurs face similar questions when it comes to their software or IT service company. We would like to give you an initial overview at this point and clarify key points that become relevant in almost every project. We are always available to assist you confidentially and personally with everything else.
The valuation is based on recurring revenues (MRR/ARR), customer loyalty, technical scalability, and team structure. In addition to classic multipliers on revenue or EBITDA, we also consider intangible factors such as IP, processes, and market position.
SaaS and MSP models generally achieve higher multiples than classic project service providers. The range depends heavily on growth rates, customer loyalty, and market segment. We typically observe EBITDA multiples between 5.9 and 7.9 in the SME sector.
For the support of a company sale, a multi-stage remuneration model is usually agreed: a monthly retainer to cover the ongoing consulting and process costs, as well as a success-based success fee, which is only due in the event of a successful completion. This ensures that both sides have a common interest in the success of the transaction. The amount of the retainer and the success fee depends on the size, complexity and transaction volume of the company and is agreed transparently at the beginning of the mandate.
The MA process takes an average of 6 to 12 months. It includes preparation (company valuation, project documentation), investor approach, due diligence and contract negotiations.
Discretion is paramount. Neither employees nor customers will learn about sales plans without prior agreement. We manage the process so that only vetted interested parties gain insight.
For a successful corporate succession, investors expect structured documentation. This includes current financial figures (BWA, annual financial statements, forecasts), customer and contract overviews (MRR/ARR, SLAs, terms, churn), anonymous information on employees (team structure, key personnel), technology and IT documentation (architecture, roadmap, IP rights), as well as legal documents such as shareholder agreements and current agreements. A clean preparation of this data in a secure virtual data room accelerates due diligence, strengthens the confidence of potential investors and can have a positive impact on the company value.
Potential buyers are private equity firms with buy–build strategies, international software companies, system houses or strategic investors with synergy interests.
The buyer reviews Financial, Legal, Tax, Commercial and Tech/IT in a protected data room. Among other things, figures KPIs (ARR/MRR, churn), contracts IP, taxes, market and competitive position/pricing, systems security are analyzed. Good preparation accelerates the MA process and strengthens the negotiating position.
Many buyers want a transition period of 6-24 months. Whether and how long the entrepreneur stays on board is negotiable and depends on succession planning, team structure and investor model.