INDUSTRY FOCUS
TECHNOLOGY
OVERVIEW
Technology M&A in 2026 is being reshaped by AI infrastructure, changing software economics, and demand for defensible capabilities. Buyers are increasingly testing whether AI can produce revenue or operating benefits and whether existing software workflows remain valuable as competition changes.
Pacifica Advisors supports owners evaluating a sale or acquisition strategy. For software and technology-enabled businesses, transaction preparation should explain customer retention, recurring revenue quality, product differentiation, and the investment required to maintain and develop the platform.
TRENDS & CHALLENGES
The 2026 transaction outlook remains selective. Buyers are using acquisitions and partnerships to add capabilities, strengthen platforms, and improve their position in AI-related markets, while reassessing businesses exposed to pricing pressure or product displacement.
For an owner, readiness means connecting the growth story to evidence: customer outcomes, renewal behavior, product economics, and realistic development needs. Revenue and earnings multiples depend on the specific business model, scale, retention, profitability, and transaction terms; no single benchmark fits the entire technology industry.
FUTURE FORECAST
According to Harvard Business Review, "2023 will likely be a more sober year in tech." The next phase of the technology industry's evolution is expected to be more deliberate and paced compared to previous years. Combinatorial trends will involve the creative utilization of existing tools, such as AI, clean tech, and immersive reality technologies. New technologies and products will emerge across various industries, including mobility, genomics, healthcare, manufacturing, and more.
While the global "reopening" has impacted the technology industry, company fundamentals remain strong, and most companies are progressively scalable. However, given the rapid pace of technological evolution, companies must maintain agility to attract investors and stay ahead in the industry.
INDUSTRY PERFORMANCE
24.48X
EBITDA MULTIPLE
11.41X
SALES MULTIPLE
Disclosure: January 2026 U.S. public-company benchmarks, using Software (System & Application), 309 firms, as a proxy. Source: NYU Stern / Aswath Damodaran. Margins and EV/sales reflect this public cohort; EV/EBITDA covers firms with positive EBITDA.
These figures are not private M&A transaction multiples, $10 million company averages, or a valuation of your business. Results vary by subsector, size, risk, and deal structure. Industry commentary updated October 2026 using PwC’s 2026 Technology Deals Outlook. Pacifica Advisors is an M&A advisor and business broker.