Technology mergers will continue strong through the new year

There are many factors that entrepreneurs must consider when they decide to sell their business. One of the most important issues though has to do with the company's financial situation. Without a firm grasp on the daily operations, and what an organization is actually worth, it will be much more difficult to create a comprehensive solution that will benefit both sides of an acquisition.
According to a recent survey of M&A professionals by KPMG, business valuation methods will prove to be especially crucial on deal activity for 2013. Specifically, as the year progresses, respondents said that corporate cash revenues and favorable credit terms will be important to mergers and acquisitions.
"As part of efforts to pursue their growth agendas, companies will look to execute transactions that align with their business priorities and strategic road map," KPMG's Dan Tiemann told the news source.
The survey also projected the technology industry to make up 39 percent of M&A transactions for 2013, while healthcare and pharmaceuticals would account for 35 percent.
KPMG's Marc Moyers added that as technology continues to evolve, and issues like healthcare remain central toward U.S. economic growth, those sectors will see activity for business deals. Emerging markets that have strong growth opportunities can have a great impact on M&A activity.
For example, ASML Holdings, a technology company based in the Netherlands, purchased Poway-based Cymer for $2.5 billion. Another example of economic issues affecting acquisition activity is Realty Income acquiring American Realty Capital Trust in January for $2.95 billion.
With the economy returning to full strength, technology mergers can be expected to remain a central aspect in the business world. For entrepreneurs who want to become part of that trend, working with M&A advisors can help ensure that everything is properly aligned, and helping them work toward the best deal possible.