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.
Please fill out the form to watch the video replay of the webcast on demand.
Will the market start to see an increase in distressed M&A? While distressed transactions come with greater risks than “healthy” acquisitions, the benefits of lower costs and legal protections for the buyer could outweigh the risk.
ESG and Sustainability concerns are now playing a prominent role in how companies around the world operate, and how investors allocate their capital.