In 2025, the vertical SaaS market is experiencing significant growth, driven by the increasing demand for industry-specific solutions that address unique operational challenges. Vertical SaaS platforms offer tailored functionalities for sectors such as healthcare, finance, or retail, providing enhanced efficiency and compliance compared to their horizontal counterparts.
As AI continues to rapidly evolve, investors must adapt their due diligence to address emerging risks. Many regulations are outdated, and overlooking key red flags can lead to costly legal and operational challenges.
A softer M&A market doesn’t mean opportunities aren’t out there, it just means preparation matters more. For founders eyeing an exit in the next 12 to 24 months, now is the time to get ahead of the curve.
German software group SAP has surpassed Danish pharmaceutical company Novo Nordisk to become Europe’s most valuable company last week. Last Monday, SAP’s shares rose by 1.35%, elevating its market capitalization to nearly €313.70 billion. Interestingly, this is down nearly 10% from the all-time high it reached in February, but the company has managed to stay ahead of other large European businesses which have seen more drastic dips in their value.
Private equity deal flow appeared to be making a tentative recovery in 2024. The outlook under the Trump administration was broadly positive due to its perceived support for deregulation, but Trump’s tariff stance could impede recovery.
Take-private transactions surged in 2024, with the total value of European deals involving a majority stake of over $1 billion rising 44% to $52 billion. According to Dealogic, 15 such deals were completed, compared to just 10 the year before, reflecting a renewed appetite among PE firms to acquire undervalued public companies.
Down rounds have become increasingly common in US and European VC fundraising. According to Forbes, approximately 20% of all US VC rounds in 2024 were down rounds – a notable increase from the historical average of around 10%. In Europe, both 2023 and 2024 also experienced a higher percentage of down rounds, even as the overall number of fundraising events dropped.
The Telecom, Media & Technology sector led all M&A activity in EMEA in 2024, with total deal value reaching €194.5 billion, an 11.9% increase year-on-year according to data provided by Datasite. This surge was primarily driven by two key themes: the growing role of AI in strategic acquisitions and the increasing investment in digital infrastructure as businesses look to scale up their technology capabilities.
The global M&A landscape in 2023 and 2024 was subdued; however, 2024 showed pockets of growth, with some countries recording significant increases in deal volume. Canada stood out with a remarkable 59% rise in M&A activity compared to 2023. Conversely, regions such as the Nordics, Benelux, and China experienced lower volumes than the prior year.
Now we turn our sights to Ethiopia, which is set for a bumper IPO year in 2025. As a country with 123 million people, it has been one of the largest countries without a stock exchange.
PE investment has been slow over the last few years, with funds facing challenges in finding exits. The low exit volume has led to longer holding periods, slower fund lifecycles, and limited new capital for investment.
Now we turn our sights to Ethiopia, which is set for a bumper IPO year in 2025. As a country with 123 million people, it has been one of the largest countries without a stock exchange.