A Blog from Gerbsman Partners Board of Intellectual Capital on “Maximizing Enterprise Value” for technology, life science, medical device and cleantech companies and their Intellectual Property
2021 has been a banner year for M&A in the technology sector. In Q3 alone, according to 451 Research, there were 1170 technology deals for a total deal value of $341B. Even with Zoom pulling its $15B bid for Five9, the 2021 total tech M&A deal value is on track to reach $1 trillion by the end of October. With the high-tech transactions over the amounts of available capital, increased competition, and innovative technologies, elevated valuations and deal activities are expected to continue through the end of the year, at least. In 2011, many PE firms were focused on more traditional sectors outside of technology; fast forward ten years and PE firms are actively seeking platform and add-on investments in tech. In 2011, one in ten technology deals involved a PE firm or a PE-backed portfolio company; thus far, in 2021, one-third of deals have involved a PE firm. Buyout shops and their portfolio companies have announced over 9,100 transactions in the last decade. In addition, with the need for PE firms to put their record amounts of capital to work, combined with some of the most receptive loan markets, Q3 tallied the most PE deals in history, with PE firms expected to continue as influential candidates in all tech M&A discussions.
Q3 2021 ViewPoint Released
Our Quarterly ViewPoint for the quarter ended September 30, 2021, has been released. The ViewPoint is a summary of trends, stock index performances, public valuation multiples, and relevant M&A activity in the services, software, and communications sectors.
Andy Agrawal Managing PartnerDecisionPointo: 704.759.6162 f: 704.973.7800
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