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.
This 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.