Software and IT companies achieve the highest valuations in the German Mittelstand. The reason is structural: predictable recurring revenue, high gross margins and growth that does not scale linearly with headcount. Strategic buyers acquire technology and teams, private equity builds platforms — both groups actively compete for quality companies.
What decides the price is the quality of revenue. A euro of maintenance or subscription revenue is valued substantially higher than a euro of project business. Owners who lift the recurring share before a sale, secure long-term customer contracts and reduce dependence on individual people move the multiple visibly upward.
In the process itself, a clean data room counts: contract landscape, churn metrics, licence and open-source compliance. We prepare these topics before going to market — so due diligence confirms what the equity story promises.
