Tech M&A Q3’23 Report
Tech M&A activity remains subdued, but valuations are rebounding amid a cautious market.
Tech M&A activity remains subdued, but valuations are rebounding amid a cautious market.
Despite signs of recovery, “risk-off” tech buyers are still more wary of making large acquisitions ($100M+) than they were historically.
Tech M&A buyers in Europe were behind nearly half of the world’s cross-border deals in Q2'23.
After an extended drop, buyers started to pay more per employee in tech M&A deals in Q2’23. However, they are still paying significantly less than they did in 2021.
After 2 quarters in the red, institutionally backed M&A targets are now exiting at stronger prices than their previous valuations.
The economic and regulatory climate has brought big tech M&A activity to a near halt, with acquisitions reaching an 18-quarter low in Q2’23.
Europe has led global tech M&A since surpassing the US in Q1’22. However, the US is still the undisputed champion of M&A deals worth $100M+.
Strategic tech M&A deals have tumbled by 30% since peaking in Q4’21. However, acquisitions by strategic buyers still account for more than 90% of M&A transaction activity.
Global tech M&A deal volume falls to its lowest level since 2020's Covid lockdowns as risk-off strategic acquirers pull back.