This latest technology M&A research paper certainly reinforces some recent themes we witnessed in 2017 such as:

  • many well-known trade buyers are slowing their pace
  • private equity firms are making a record number of tech sector investments, offering as much competition as strategic buyers
  • tech-focused private equity firms have never had more money to spend
  • bridging valuation gaps is the biggest transaction-related headache
  • many corporate buyers are expecting Trump policies to spur M&A in 2018 (the “Trump bump”)

It will be interesting to see whether large trade buyers regain their position in the tech M&A landscape this year. Those that I have spoken with lately are certainly somewhat dissuaded by increasingly high company valuations. Will appetite levels from private equity investors continue to grow in 2018?