PRINT THIS PAGE Technology Sector M&A Overview 2007
06/02/2008. Source:ICON Corporate Finance. Brian Parker
In football parlance, 2007 was a 'game of two halves'. While the worldwide M&A feast of 2005/6 carried on until halfway through 2007; the second half was a disappointment as the credit crunch drained liquidity from private equity buyers and reduced confidence worldwide. The technology sector has felt the slowdown too, but with lower interest rates, ongoing technological change and increasing cross-border activity, the game is far from over, writes Brian Parker of ICON Corporate Finance. The tech M&A market
In the UK, the number of Technology M&A deals fell last year by a significant 21% to 482 deals. After the buoyant conditions of 2005/6 that makes 2007 the lowest number of deals since 2002. This wasn't mirrored by our business which was very busy, particularly in the last quarter, once Gordon Brown and friends decided to rewrite the CGT tax laws. This will ensure that at least the first quarter of 2008 is a good one for UK private M&A. The other trend from the chart is that the number of UK cross border deals rose again last year to 53% and remains remarkably steady, despite the reduction in volume and significant weakness in the dollar which impacts US buyers.
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Note: The information and opinions in this report were prepared by ICON Corporate Finance Ltd. The data was provided by Zephyr, a Bureau Van Dijk database product and public sources. We have endeavoured to provide accurate and timely information but we cannot guarantee it. The brief sector overview is provided for information purposes only.
ICON is a UK-based firm of corporate finance advisors, focusing on companies and management teams in the technology sector.
For more information go to www.iconcorpfin.co.uk.
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