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Technology M&A Dealmakers More Optimistic

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Technology M&A Dealmakers More Optimistic

Half of tech execs surveyed expect M&A to increase in 2014, vs. only 7 percent forecasting a pull-back.

Technology dealmakers may be showing a little spring in their step heading into 2014, according to the latest M&A Leaders Survey issued jointly by global technology and M&A law firm Morrison & Foerster and syndicated technology research firm 451 Research.

In their latest canvass of tech industry insiders, MoFo and 451 Research found participants modestly bullish about the pace of mergers and acquisitions, both in recent months and looking ahead. Forty percent said the past six months generated more deal activity than at any point in the past two years, compared with 36% saying the same period produced less M&A work. Even more striking, 50% said they expect M&A activity to pick up in the next six months – vs. only 7% projecting a slowdown. More industry insiders are also predicting an uptick in the number of bidders vying for deals, as well as an increase in private company valuations – more signs that the market may be gaining traction.

"Corporations are again willing to turn to M&A to address fundamental competitive challenges."

"It's encouraging to note that even with the sluggish pace of economic recovery and continued concerns over Washington's fiscal crisis, very few surveyed individuals expect a slowdown in M&A activity in coming months, and most see a good chance of recovery to pre-recession levels within five years," said Morrison & Foerster's Robert Townsend, co-chair of the firm's Global M&A practice. "While deal volume remains at a relatively low level, a number of high-profile, high-priced acquisitions have occurred this year that suggest large corporations are again willing to turn to M&A to address fundamental competitive challenges."

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