Taking a Little Private Time: M&A Trends in Technology in 2013


February 15, 2013

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)
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