In exciting news, Software and IT M&A transactions led in deal values for the very first time in Q1 2015.
A recent report released by PwC showed a decline of 20% in Q1 for overall technology merger and acquisition deals. But this is a little misleading because when you look a little deeper, it turns out a couple of things were happening: there were fewer megadeals (those valued at $1B+) and fewer IPOs (initial public offerings). The latter primarily because companies like Uber and Snapchat were able to raise large amounts of capital at high valuations.
Despite this drop, the momentum in technology deals is expected to return to 2014 levels, with the software, semiconductor and communications equipment industries singled out as being ripe for consolidation. In fact, software deals actually increased in the quarter even as deals overall slowed.
If you have always said you would sell your Software or IT Services company “one day”, market conditions won’t get much better than they are right now.
Many shareholders understand the cyclical nature of the technology M&A market and are capitalizing on this increase in value and volume to explore a sale to a strategic buyer. There are a large number of companies looking for companies to acquire that will provide increased market share and opportunity, making this a very favourable market for sellers.
If you’ve been considering your options, let’s have a call. We can tell you what we’re seeing in the market today, what buyers are looking for and paying a premium to get, along with what you can do to help increase your value for the near or long term.
Access our online calendar HERE and let’s connect.