How has the COVID-19 pandemic impacted on tech M&A deals?

Covid-19 News | Mergers & Acquisitions | Reports | Technology

Hampleton Partners, the international technology mergers and acquisitions advisor, is running a series of webinars to support CEOs and senior management teams who need to understand the impact of COVID-19 on the M&A potential for their company.

The webinars cover the latest macro-economic and financial data, plus information on month-by-month deal volumes and valuations and marketplace and sector trends.

Miro Parizek, Principal Partner, Hampleton Partners, said: “Tech M&A deal volumes are healthy despite the extreme impact on business and society of the coronavirus pandemic. 264 deals were struck in April 2020 down from 286 in 2019.

“Significantly, the impact has hit the proportion of deals in the $1bn-plus range, which has collapsed from 19 per cent of the total in February this year to two per cent in March and April.

“We’ve also seen private equity buyers holding on to their vast reserves – €237bn at the last count – allowing strategic buyers to pick up the slack, up from 66 per cent of buyers in January to 77 per cent in April.”

“Executives are looking for advice about when to sell and how to manage the process. Generally, if your revenues are impacted, then you need to prepare carefully for a sale in 2021. If your company is experiencing an upturn in revenues, then strategic buyers are still looking for resilient businesses and as there are fewer businesses being sold, you may be able to attract more attention, so getting the process started now could be a good move.”

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