Activists will be competing with PE dealmaking professionals more this year than last years in several categories of the technology M&A market, says Jeffrey Liu of Ernst &Young in an interview on Privcap. He says a lot more about trends in technology M&A but we know how busy you are so here are some of the key points that he expressed.
Tech M&A Trends in 2013
- Unrepatriated cash held abroad by large profitable tech companies will drive foreign acquisitions
- Take privates in the mid-cap with low performing stocks and thin margins
- Margin crunch and concentration on the core will lead tech companies of various sizes into divestment of non-performing consolidated divisions, improving supply of deals
- Take privates targeting cash-rich mature companies will be a trend. “They just may need a little bit of private time to get their products, divisions, margins in order,” said Liu.
- Need to scale drives consolidation in companies at the top end of the market
- Internet hotter than ever with cloud, data and analytics, mobility creating growth. (Image source: Privcap)