Financial markets have spent the past year marking down enterprise software on the view that AI agent-led platforms will displace traditional SaaS. But what Cavendish is seeing in its recent M&A work tells a different story for the midmarket ERP partner channel.

In his latest report, Dan Marchington, Director at Cavendish, explains why a negative read-across from the public market sell-off does not necessarily hold for ERP partners. Across our recent transactions, partner software sales have grown by more than 25% a year, and M&A appetite remains strong, with established partners acquiring smaller, faster-growing businesses. Megabuyte data shows UK software implementation deal volumes held flat at 25 deals in each of the last two years, against a wider UK ICT and digital services market down 11%.

The report also explores why partners are likely to play a central role in bringing agentic AI to midmarket customers. As vendors push agentic workflows into their products, someone has to scope the processes, configure permissions, ensure data quality and provide ongoing support. Partners already embedded with these customers are well placed to take on that work, both by implementing systems with AI features today and by designing agentic workflows as they arrive at scale.

Download the full report to read Dan’s analysis of what’s driving value in the channel, how the AI opportunity is likely to unfold, and what it means for ERP partner owners and acquirers.