Tech M&A trends are positive

By October 14, 2010Exits

This chart from a recent GP Bullhound presentation augurs well for those of us working in/with technology startups.  It shows that the number of tech M&A deals has been steadily increasing since a low point in Q3 2009.  Note also that digital media exits have steadily increased throughout the period shown.

imageThis chart shows the number of transactions.  I haven’t seen information at this level of detail on the value of the deals, but the higher level data I have seen suggests value is on the same trend as volume.

In a later slide GP Bullhound identified the hot spots for M&A as digital content, online services and virtualisation.  Within digital media eCommerce and (social) gaming were the most important subsectors.

  • Interesting data point. There were some recent reports from Preqin which attributed the tech M&A as much to trade sales as secondary buyouts (which I always feel may be questionable in some cases from the LP’s perspective). Included a few charts here:

    And data from E&Y a few months ago which also emphasised PE tech transactions in UK rather than trade sales:

  • Hi Rhitu – I was looking at some data this morning which points to the same conclusion. I agree that secondary transactions between PE houses aren’t a good indicator of market health (one way or the other). Tks Nic