Tech M&A Outlook 2020 Report
In Hampleton's Tech M&A 2020 Outlook report, we take a look at how tech developments contribute to the fluctuating M&A industry of today.
With high levels of investor confidence, a constant stream of innovation, relatively cheap capital, rapidly developing supporting technologies and a strong push to create earnings growth through acquisitions, one would expect technology M&A to continue to boom. However, overall trends have shown a correction from 2015’s peak volumes and total deal values to a low in 2017 and finally a slight rebound during the first half of 2018. This correction and rebound is indicative of M&A’s cyclical nature, however a strong 2H2018 may be an early warning-sign of investor sentiment being overly optimistic.
The report also includes:
- Trends and analysis of deal activity
- Deal geography
- Top acquirers
- Valuation metrics
Technology company performance and investor sentiment has generally had a strong correlation with disclosed tech M&A values since 2004.
Since Q12016 however, there was a growing disconnect between these two metrics until 1H2018 delivered good M&A performance and several high-value transactions.
Optimistic stock markets, low interest rates and indications of full M&A pipelines among investment bankers indicate that 2H2018 will follow the strong first half, causing a convergence back towards the NASDAQ. However, as the markets continue to go up, the risks of a coming correction grow.