April 22, 2015

Experts predict another robust year of tech M&A

"Get ready for a major boom in technology mergers," reads a Business Insider headline proclaiming the next wave of M&A deals in the tech industry. After a highly active year of deals among tech companies, experts say that 2015 is staged to witness another round of important mergers and acquisitions. 

"Mergers and acquisitions activity around the world continues on a tear. Last year alone saw $3.5 trillion of deal-making, just below the all-time high of 2007, Thomson Reuters data show," write Scott Kupor and Andreessen Horowitz. "Technology companies accounted for $214 billion of that, near the records of 1999 and 2000, according to Qatalyst Partners."

That momentum stands to continue through 2015, especially if some of the largest acquirers in tech continue to buy companies. The report suggests that 60 percent of all tech acquisitions are orchestrated by five major entities: Google, Facebook, Microsoft, Oracle and SAP. While those companies are highly sought-after partners, there remain a host of other tech firms looking to buy smaller brands. Even boutique tech acquisitions have brought companies outside the tech industry into the world of tech acquisitions. 

In an active mergers and acquisition climate, startups and small tech firms should do some soul-searching about their long-term goals. Whether an acquisition is just around the corner or years down the road, they can take steps to brand and market their operations to potential buyers. From achieving quantifiable metrics of success to improving branding online, building a reputation and enhancing visibility help companies navigate the M&A process. 

With the guidance of an experienced M&A advisor, companies can design and implement an acquisition strategy that helps achieve growth objectives. Contact us today to learn more about how our solutions can help your business reach the next level.