Palo Alto – December 13, 2022 – Woodside Capital Partners is pleased to share our Tech M&A December 2022 Newsletter, covering the following, and more.
- Despite deflated equity prices, cost-cutting, hiring freezes and other challenging adjustments undertaken by tech companies in 2022, most companies, say that in general, they are cautiously optimistic about 2023.
- Some tech leaders note that multiple key economic indicators look quite good. Household balance sheets are strong, consumers are flush with cash.
- Tech leaders’ opinions about the tech funding market are split – well-funded companies with long cash runways appear to be behaving less-conservatively, while companies with tighter funding say they are running operations leaner than ever.
- In the wake of stock price markdowns earlier this year, as well as high profile governance issues related to Theranos and FTX, executives say that investment leverage is swinging from founders, back to investors.
- Founder-CEOs that are leading bootstrapped companies generally say that they are well-situated because their companies typically have kept expenses below revenues.
- Most executives who are in charge of acquisitions – either at acquiring companies or at PE firms – said that they are continuing to look for compelling acquisitions, but they are being more selective, and they are more focused on mitigating risk.
- Despite the many challenges endured in the tech industry in 2022, most executives we’ve spoken with believe that the industry is better positioned entering 2023 than in many years past.