Some of the areas of projected M & A activity include AI and government SaaS. SaaS businesses have seen a stabilization in the revenue multiple and an improvement in operational success in early 2024 as a result of increased profitability in a slower revenue growth environment. This article provides a good explanation of the improvements in the first part of 2024.

Bloomberg talks about a coming consolidation of AI companies, particularly larger tech firms acquiring small AI companies that have good technology but have had limited market success.

Relative to it's size Government Saas is an area of growth and significant M & A activity. This report from Software Equity Group outlines the state of government M & A.

Aventis Partners has written a good perspective on software M & A including a history of some of the key drivers including valuation multiples and a prediction of future M & A activity in 2024. In general the predictions are that the market will get back to more historical valuation models and deal volume, good news if you are looking to sell your company, bad news if you're looking to acquire at a bargain price.