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Saastr

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Dear SaaStr: Why Are Buyers Not Ready to Spend Big on Acquisitions as Readily Today as in the Past?

  • Revenues multiples for tech companies have significantly decreased, making deals more expensive.
  • Antitrust review processes have become more challenging and time-consuming for larger M&A deals.
  • The decrease in revenues multiples and increased antitrust scrutiny are the main reasons for buyers being less willing to spend big on acquisitions.
  • Other factors such as excessive VC funding and interest rates also contribute to the reluctance in making large acquisitions.

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