Why Private Equity Is Buying Your Favorite Software Stack

Tech M&A has a new dominant player: not Microsoft or Salesforce, but private equity firms piling into vertical software and specialized B2B tools. Lucas and Luna break down the specific mechanics — the high recurring revenue, the low churn, the buy-and-hold (not flip) strategy — that have PE funds writing massive checks for companies like the one that just sold for $12 billion. Lucas brings numbers: since 2024, PE-backed software deals have doubled as a share of total tech M&A, hitting nearly 40% by Q1 2026. He explains why a subscription-model ERP serving mid-market factories is more attractive than a high-growth consumer app. Luna pushes back on the 'financial engineering' critique — and they land on a surprising insight: the best-run PE-owned software firms actually spend more on R&D than their public peers. If you work in B2B SaaS, this episode will change how you think about your company's exit options. #PrivateEquity #TechMA #SoftwareAcquisitions #PE #VerticalSoftware #B2BSaaS #RecurringRevenue #LBO #ThomaBravo #VistaEquity #SilverLake #SaaS #TechDeals #BusinessPodcast #FexingoBusiness #MergersAndAcquisitions #SoftwareInvesting #DigitalTransformation Keep every episode free: buymeacoffee.com/fexingo