Software Due Diligence Study 2025 Edition

The document is a report detailing the findings of the 2025 edition of BearingPoint Capital's Software Due Diligence Study. It builds on the previous year's study and focuses on the Software and SaaS sector, surveying Private Equity firms primarily in Europe and some in the US. The report outlines the current dynamics of technology investments, including deal activity, exit strategies, and due diligence practices. Key findings indicate a moderate increase in expected deal activity, although uncertainties in the macroeconomic environment persist. The study highlights challenges such as valuation mismatches during exits and longer deal durations due to thorough due diligence processes. It also notes a shift towards specialization in technology due diligence, with firms increasingly integrating AI, cybersecurity, and ESG considerations into their investment strategies. The report concludes that despite challenges, the appetite for deals remains strong, emphasizing the growing importance of technology due diligence in investment decision-making.