This month’s issue of the monthly executive brief providing M&A market insight for C-level management and their professional advisors.
M&A in the technology sector has experienced slow first quarters in the recent past. But according to Ernst & Young’s report on Global Technology M&A, the first quarter of 2015 has set a record for quarterly value and volume after the year 2000. In North America alone, there was over US $70 billion worth of deals in over 900 transactions in the industry.
A recent report published by KPMG suggests that tech should be one of the top industry sectors that will benefit from robust M&A activity this year, continuing a trend that began in 2013. Cloud computing, big data, mobile devices and social media are segments that will command the attention of both financial and strategic investors.
In tech, the opportunity for M&A opens and closes quickly. Companies need to be ready to move when the opportunity presents itself. The best way to be ready is to know what buyers are looking for, and make those things an organizational priority. There are two key components of a business that buyers in this space look at: the customer base and the trend in revenues. Buyers want a wide customer base with long-term prospects. They also like to see growing and sustainable revenues.