What’s The Forecast for Tech M&A?

The global M&A market continues to be driven by technology innovation. According to MergerMarket, the Technology, Media and Telecommunications (TMT) sector amassed $850 billion in deal value in 2020, almost twice that of the next best sector. As a firm with deep technology industry credentials, we closely monitor the trends and issues shaping the technology M&A market. We invite you to stay updated through our collection of surveys, podcasts and articles from prominent members throughout the firm’s global M&A network.

2021 Tech M&A Market Survey Results

Morrison & Foerster is pleased to present our 2021 Tech M&A Market Survey, published in conjunction with Mergermarket. In Q2 2021, Mergermarket surveyed 300 dealmakers from around the world in order to gain valuable insights into the future of technology-related M&A.

This year’s appetite for transactions, higher tech valuations, and increasing acceptance of additional M&A financing structures translate into dealmaker optimism for tech M&A next year.— Brandon Parris, Morrison & Foerster’s Global M&A Chair

According to survey results, dealmakers foresee 2022 sustaining a high level of M&A deal volume on top of record-setting activity in 2021. The survey also shows that the top drivers for tech M&A deals over the next 12 months will be scaling up for industry competitiveness, keeping pace with technological advances, and realigning strategies to address the lasting impact of the COVID-19 pandemic.

As noted in the press release, other survey highlights include:

  • 78% and 54% of respondents, respectively, expect aggregate tech M&A deal volumes and average values to increase through the first half of 2022.
  • 42% of respondents abandoned or postponed a tech M&A deal between May 2020 and May 2021 due to the COVID-19 pandemic.
  • Cloud technology is cited as the best near-term sector for dealmaking opportunities, as identified by a wide margin of respondents (19%).
  • 25% of respondents believe the greatest challenge facing tech M&A through the first half of 2022 will be a stricter regulatory and foreign direct investment (FDI) environment.

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