Interesting perspective from @Villispeaks on the slow pace of M&A in SaaS companies. He argues that the playbook for acquisition of software companies which has driven M&A over the last decade or so, ie driving out costs and acheiving greater scale in distribution, does not apply for SaaS. On this thesis SaaS companies will have to aim for an IPO, rather than hoping for M&A to create liquidity, with implications for venture investors in terms of the greater amounts of money required and the longer time to exit. Great opportunities for PE investors though, as there will be a greater demand for buyouts.