Not necessarily. Artificial intelligence is not driving up the value of all tech companies. It is creating a clear divide in the valuation of tech companies, separating strategic firms from those that are starting to become dispensable.
At Baker Tilly’s Tech M&A division—the leading advisor on technology mergers and acquisitions in the Iberian mid-market by number of transactions in the TMT sector in 2025—we have observed a clear trend: AI does not add value on its own; rather, it reshapes where value lies.
No. One of the most common mistakes in the process of buying and selling technology companies is to assume that incorporating AI into the product automatically increases the valuation multiple.
That is no longer true.
Today’s buyers (funds, corporates, private equity firms) are more technically savvy and demand clear evidence. The question is no longer whether you use AI, but whether that AI has an impact on:
When valuing technology companies, KPIs are more important than the narrative.
Buyers are prioritising four key factors in their assessment:
Our research and the sources analysed reveal a clear division in the market:
The market isn’t paying to ‘use AI’. It pays to control an advantage that grows stronger with use.
In the current climate, buyers no longer simply purchase products.
They buy:
The sources analysed sum it up well: 2025 was the busiest year on record for SaaS M&A, with 746 transactions in the third quarter alone – 26% more than the previous year. And much of this activity is no longer driven solely by the traditional buy market shareapproach, but by a buy over buildstrategy; in other words, the buyer acquires what enables them to move forward more quickly.
That doesn’t necessarily have to be the case. A new key factor has emerged in the valuation of technology companies: buyers want to know whether your position will remain strong as AI continues to drive down the cost of building, operating and replacing software.
When buyers don’t see your product as durable, they will do one of two things:
In fact, 80% of buyers see AI-driven commoditisation as the main threat to SaaS, and that perception carries a lot of weight in negotiations.
Yes, it is critical. Although it wasn’t as significant in the past, it is now the main factor determining the price. The most sensitive areas tend to be:
Any weakness identified results in a reduction in the load-bearing capacity or increased structural requirements.
Before starting the sales process, it is essential to answer three questions:
It is not enough simply to integrate AI. It must have an impact on measurable results.
Buyers value the impact on their business, not the technology.
Talking about technology doesn’t sell. Presenting yourself as a company that reduces costs or eliminates risks where the customer can’t go wrong says a lot more. Buyers buy impact, not slogans.
Prepare the IP, technical debt, metrics, contracts, technology… Anything that isn’t resolved before the process begins will be seen as a risk during negotiations.
Less than two years. The truth is that sales are no longer measured in years, but in quarters. A telling statistic that confirms this trend is that 40% of SaaS CEOs are considering bringing forward their exit plans due to the uncertainty caused by the rapid evolution of AI.
In many cases, waiting without a clear strategy can lead to a fall in the valuation.
Yes, but not automatically. AI is already a factor in valuation, although many companies have yet to incorporate it properly into their narrative.
The key is not to position yourself as a company ‘with AI’, but to demonstrate something much more concrete:
That is what really affects the multiple.
If you are considering selling your business within the next 12–24 months, we can help you understand how the market views your company today.
You can take a self-assessment test to gauge how well prepared your company is.
By Diego Gutirérrez, partner atBaker Tilly
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