July 2, 2015

2015 primed to be even bigger tech M&A year than 2014

According to S&P Capital IQ, there has been a total of $126.3 billion in American tech-targeted M&A deals this year, or a 104 percent increase over this time in 2014.

Last year, economists and market watchers were floored by the volume of tech mergers and acquisitions. According to S&P Capital IQ, there has been a total of $126.3 billion in American tech-targeted M&A deals this year, or a 104 percent increase over this time in 2014. 2015 is on track to be the biggest year for tech mergers since 1999, Matt Krantz of USA Today reports. 

Due to the rapid rise of small companies in a climate that facilitates mergers and acquisitions, Krantz suggests that investors pay attention to smaller firms whose potential could skyrocket once they're acquired by an industry giant. Rather than investing big in companies like Google and Microsoft, he suggests that investors look at companies that those corporations might acquire in the next several years. 

"Think beyond just the big tech names," writes Krantz. "Investors have been piling into the shares of the mega tech names for years…but now the game is shifting smaller. The recent tech deals have centered around companies with an average market value of roughly $1 billion…The greatest opportunities for tech investors lie with the smaller large companies and the larger mid-caps."

This is very good news for small and medium-sized enterprises that might be looking to sell soon. When companies assert a dynamic, memorable and original brand niche, the attention of investors and speculators can't be far behind. 

With the guidance of an experienced M&A advisor, your business can find and sign a lucrative M&A deal that helps your tech firm reach its growth objectives and other goals. Contact us today to learn more about how our services can help you take your startup to the next level.