Executive Insights

Fall 2022 Software & Technology M&A Market Update

Tech M&A volume remains resilient with +1,400 transactions completed in Q3, representing a 20.7% QoQ decline. We continue to see both financial and strategic buyers retrench around cash flow security and by pursuing less transformative M&A at lower prices, as evidenced by a +48% YoY decline in deal value. Unsurprisingly, some strategic buyers have discontinued M&A programs in light of market volatility.

The Business of Private Capital

We believe the business of private capital is here to stay – with 56% of 2022 M&A deals coming from private equity investors or their platform companies. Historic levels of capital availability continues to drive elevated bidding dynamics while opportunistic PIPE and take-private deal making has taken hold with compressed public equity valuations. Madison Park Group has tracked over $88 billion in take-private deals so far in 2022, up +35% over full-year 2021. We have also noted several large venture investors taking new positions in public equities – outside of existing portfolios of public equities.

Madison Park Group actively monitors M&A market activity across a range of technology sectors. In our Fall 2022 Software & Technology M&A Market Update Report readers will find insights and transaction data relevant to the following sectors:

  • Corporate & Business Solutions: Accounting & Fintech, Communications & Collaboration, Compliance & Legal, Content Management, Global Diversified, Human Resources & Labor, Marketing & Advertising, and Verticalized Platforms
  • Industrial Software: Commerce & Supply Chain Management, Engineering & Design, Industrial & Manufacturing, and Location & Telematics   
  • Healthcare & Life Sciences: Life Sciences Software, CROs & Life Sciences Services, Healthcare Software & Data, and Healthcare Services
  • Business Infrastructure Solutions: Business Intelligence & Analytics, Data Solutions & Infrastructure, Payments, Security Software
  • IT Services: Business Process Outsourcing, Large Cap IT Services, Small Cap IT Services

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