Palo Alto – November 29, 2022 – Woodside Capital Partners is pleased to share our Tech M&A November 2022 Newsletter, covering the following, and more.
- In November 2022, trendlines for M&A activity are following larger trendlines for the global economy they’re down compared to a year ago, given an economic brew of high inflation and interest rates, challenged quarterly earnings, a 30%+ tech stock decline, geopolitical uncertainty, and acquirers’ opaque visibility into future earnings.
- A bellwether for the tech M&A market are transactions involving a private equity-backed company, of which there were 56 transactions with aggregate announced deal value of $22 B in Aug-Oct.
- Strategic acquirers are still looking to fill essential gaps in their product roadmaps, and in many cases, they are continuing to look to emerging growth companies to fill those gaps. Additionally, smart strategics with healthy balance sheets are using the current market to shop for relative bargains.
- We’re also seeing an increasing number of larger companies using M&A defensively to divest of non-core assets.