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