What’s The Forecast for Tech M&A?

MergerMarket Dealcast Presents: Trends in Tech M&A

Corporate Department Co-Chair Eric McCrath sat down with host Julie-Anna Needham to discuss cross-border M&A, accelerated digitalization due to COVID-19, and trends in U.S. acquisitions into Europe.

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Introduction

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.

2020 Tech M&A Leaders' Survey Results

The contrast could not be starker between the negative outlook induced by the pandemic at the start of 2020 and the extraordinary bullishness shown by tech dealmakers at the end of the year.— Eric McCrath, Co-Chair, Morrison & Foerster's Corporate Department

The Tech M&A Leaders’ Survey is a joint effort by Morrison & Foerster and 451 Research to take the temperature of company executives, corporate development officers, lawyers, bankers, and other dealmakers focused on the technology sector. The mission of this annual survey is to dig into pertinent M&A-related issues with thought leaders and to spark a healthy dialogue about their topics of interest.

According to our December 2020 survey, two-thirds (66%) of respondents anticipate an increase in M&A activity for the companies they advise in the next 12 months, with only 6% expecting a decrease. By contrast, in our previous survey in November 2019, 40% of respondents predicted an increase.

As noted in the press release, the survey also highlights the immediate and long-lasting impacts of the COVID-19 pandemic on dealmaking, with 53% of respondents reporting delays in due diligence during the pandemic, and 66% anticipating that the post-COVID era will include a greater mix of virtual meetings in the negotiating process.

Download the whole survey report to read more predictions on timely topics, including:

  • The outlook for technology M&A deal activity and valuations;
  • COVID-19’s immediate and long-lasting impacts;
  • Private equity spending; and
  • The future of SPACs.

View the Report

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