This latest technology M&A research paper certainly reinforces some recent themes we witnessed in 2017 such as:
- many well-known trade buyers are slowing their pace
- private equity firms are making a record number of tech sector investments, offering as much competition as strategic buyers
- tech-focused private equity firms have never had more money to spend
- bridging valuation gaps is the biggest transaction-related headache
- many corporate buyers are expecting Trump policies to spur M&A in 2018 (the “Trump bump”)
It will be interesting to see whether large trade buyers regain their position in the tech M&A landscape this year. Those that I have spoken with lately are certainly somewhat dissuaded by increasingly high company valuations. Will appetite levels from private equity investors continue to grow in 2018?
last year saw a new type of dealmaker, with a new take on tech M&A, step forward as the buyer of record: private equity (PE). These firms, which have never held more money than right now, put up a record number of prints, accounting for an unprecedented one out of every four tech deals announced last year.