Signs of life in the technology M&A market

With enterprise capital totals depressed world wide and the IPO market simply beginning to poke its head out from hiding, who’s shopping for startups as of late? The reply is fewer folks than earlier than. However whereas combination M&A deal quantity in startup-land is a little bit of a bummer in response to a brand new report from CB Insights, there are a variety of optimistic knowledge factors that ought to decrease cortisol ranges amongst startup founders struggling to shut a brand new tranche of personal capital.

In the present day we’re taking a look at the place offers are getting completed from a geographic perspective, contrasting the European market with what we noticed in the US within the second quarter. We’ll additionally discover how median sale costs are altering, and what kind of return these exits would possibly generate for private-market traders.

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That knowledge is basically bereft of Massive Tech exercise. Apple was the one firm amongst tech’s most dear to really purchase a smaller firm in Q2 2023: the Mira deal, chances are you’ll recall. Which means after we are taking a look at second-quarter tech M&A exercise we’re discussing a pattern set that’s practically freed from the affect of tech’s greatest, and wealthiest, gamers.

From a trailing perspective, that’s not encouraging. From a ahead perspective, provided that sure M&An information factors improved within the second quarter with out the assistance of the deepest pockets within the business, we may permit ourselves a little bit of bullishness in relation to M&A totals that we may see subsequent 12 months.

Europe vs. the US

Europe noticed extra tech acquisitions than the U.S. within the second quarter of the 12 months: 812 in comparison with 632 within the U.S. That is noteworthy as a result of by now we all know it’s not only a blip within the knowledge; it’s been the case for six quarters in a row.

Deal quantity is one factor, however main within the variety of offers completed doesn’t imply that Europe is house to the biggest M&A transactions. The U.S. is the nation that sees essentially the most offers value greater than $100 million. That’s 28, or 41%, of all such offers in Q2.