Selling IT & Software Companies in CEE: Why Talent Attracts Western Buyers

CEE's IT and software sector is among the most sought-after by international buyers. The region's engineering talent, competitive costs and recurring-revenue models make these businesses especially attractive. Here's why — and how they're valued.

1. Why CEE IT attracts buyers

The region has deep engineering talent at a competitive price, strong technical education, and growing maturity of product ecosystems. For Western buyers this means access to teams and products that would cost more to build at home.

2. How software companies are valued

Unlike traditional businesses, fast-growing SaaS are also valued on a revenue multiple (ARR), not just EBITDA. Key metrics: recurring-revenue share, customer retention (churn), growth rate and gross margin.

3. What raises the value of an IT business

• High share of recurring / contracted revenue
• Low churn and high customer retention
• Owned intellectual property (not just services)
• Independence from single key people
• A scalable product and processes

4. Who buys

Strategic software vendors expanding their product portfolio or teams, PE funds building software platforms, and international groups seeking engineering capacity.

FAQ

How are software companies valued?

Fast-growing SaaS are often valued on a revenue multiple (ARR), accounting for recurring-revenue share, churn and growth rate; more mature ones on EBITDA.

Why do Western buyers look at CEE IT companies?

For the deep engineering talent at a competitive price, strong technical base, and recurring-revenue models.