Will You Be Acquired, and Then What Happens?

A common misconception from companies contemplating an exit is that M&A has dried up as the venture and IPO markets have. This is not to say that M&A hasn’t been affected by the current market conditions, but dried up? No. Case in point, 2008 technology-centric deal volume was down 22% from the previous year, but taking into account the absence of private equity buyers, whose deal volumes dropped by over 70% during the same period, quickly explains a primary factor for this modest decline. Even though private equity buyers have taken a step back, their portfolio companies and the robust strategic buyer community remain active as M&A continues to be a predominant component of most strategic growth strategies. This propensity to acquire, at a minimum, should sustain current M&A volumes which are comparable to levels seen in 2005.

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