Is your SaaS actually protected from AI disruption, or are acquirers walking away without even looking? In this episode, Rob Walling talks with Einar Vollset of Discretion Capital for a front-lines SaaS M&A market report, covering how the acquisition climate has shifted since 2021, why some PE firms now require at least one AI moat before they'll even look at a deal, and a breakdown of all five moats: hardware-software coupling, two-sided network effects, communication graph embeds, proprietary data with closed feedback loops, and operational switching costs. Topics we cover: (2:05) – State of SaaS M&A from 2020 to today (5:49) – Why 2021 was the best time to sell (7:38) – How the 2022 downturn raised the acquisition bar (8:59) – The SaaS apocalypse narrative and AI FUD (12:26) – Why bootstrappers should care about exit markets (15:52) – AI moat #1: Hardware-software coupling (17:38) – AI moat #2: Marketplace scale and two-sided network effects (20:05) – AI moat #3: Communication graph and relationship embed (21:27) – AI moat #4: Proprietary data with closed feedback loops (23:20) – AI moat #5: Operational embed and switching costs (27:28) – Some PE firms now require at least one moat (29:23) – AI-native SaaS faces even higher hurdles Links from the show: MicroConf Connect Next Live Session: Jim Zarkadas on User-Friendly Onboarding (June 17) TinySeed MicroConf YouTube The SaaS Playbook Discretion Capital M&A Guide Fiscal.ai DealForma BuiltWith ZyraTalk EverCommerce Einar Vollset (@einarvollset) | X If you have questions about starting or scaling a software business that you'd like for us to cover, please submit your question for an upcoming episode. We'd love to hear from you! Subscribe & Review: iTunes | Spotify

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“What did the council decide on item 42?” — answered with the speaker and the moment.