Among the few exceptions to the dealmaking slowdown in much of 2020 was the technology sector, where deals proliferated throughout the rocky spring and summer seasons. So far in 2021, the momentum has continued with record-setting valuations amid low interest rates and Covid-19 vaccine hopes. Now, though, top industry advisers are beginning to wonder how much runway is left.
Does the frothy tech M&A market have more room to grow? Will virtual dealmaking continue even after much of the population is vaccinated? If so, does the tech industry have a natural advantage in operating in this environment? And how will the proliferation of SPACs affect the market and change the dynamics of buyers and sellers? If the tech stock sell-off continues, meanwhile, will the number of strategic buyers diminish? Or will we continue to see strategic dealmaking as cross-border M&A surges?
Christina Pearson, the head of Pillsbury’s Silicon Valley Corporate and Securities group, represents companies in every stage of their life cycle, from start-up to maturity, and counsels her clients through liquidity transactions such as venture capital financings, mergers and acquisitions, and initial public offerings.
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In September 2022, the deals and dealmakers shaping the Deal Economy will be celebrated in the latest installment of The Deal Awards. In line with its mission of providing forward-looking intelligence across mergers and acquisitions, private equity, activism and restructuring, the Awards seek to recognize and celebrate the advisers, firms and banks driving the market forward.