In Europe, M&A deal value nearly doubled to £586.3 billion year-on-year in the first half (H1) of 2018. This is the biggest surge since the 2008 financial meltdown. The number rose in spite of a decline in transactions by 18%, to a 13-year low of 6,201 deals made. The agility that the cloud enables gives businesses a chance to innovate and expand in an efficient, affordable way.
Cloud adoption is significantly driving tech M&A deals globally by enabling businesses to innovate and expand efficiently, positioning them for more and better acquisitions. A "cloud-first" approach fosters rapid organic growth, and the secure storage of data and operations in the cloud simplifies ownership transfer, making global sales easier. This trend contributed to M&A deal value in Europe nearly doubling to £586.3 billion year-on-year in the first half of 2018.
A “cloud-first” approach enables more rapid organic growth, positioning businesses for more and better acquisitions. When all of your data and essential operations are stored in a secure cloud, transferring ownership becomes easy and flexible. Suddenly, a sale to a purchaser on the other side of the world is no more challenging than one on the other side of town.
Billion Dollar Transactions
Record high M&A numbers are largely attributable to big deals in technology and digital media. By the end of the first half of 2018, global Technology, Media and Telecommunications (TMT) values had reached $371.1 billion and 1,693 deals, representing a 19% share of global M&A. The strong results nearly surpassed H1 2015 record high of $383 billion, which represented a market share of 21 percent, according to the latest worldwide market study by Mergermarket.
The total deal value in the overall TMT sector also marked a 107% jump, when compared to figures from H1 2017 ($179.4 billion), though the deal count fell by 53 transactions (from 1,746). The bidding war between Comcast and Disney to secure Rupert Murdoch’s Twenty-First Century Fox was a major player. The acquisition of Time Warner by AT&T was another huge deal.
Asia is another site for potentially record growth. Asia has seen a surge of M&A within the technology and digital media sectors. Beijing, Tokyo, and Bangalore are all nurturing vibrant start-up with the potential to attract global attention. There’s also increasing optimism in the UK and Europe.
Preparation is Key
There’s plenty of money to be made as part of the deal-making frenzy, whether you’re a small start-up or a large corporation hoping to purchase a platform. For sellers, being acquisition ready is key. That means:
- Streamlining processes and operations and establishing clear, efficient protocols for running the business.
- Trusting a strong management team to run the business. Owner-dependent companies are less viable.
- Getting the books in order so that they support a positive story about the business and are well organized and supported with credible back up.
The same strategies that can support long-term growth can also make you a more attractive acquisition. So consider speaking with an Investment Banking professional now. They can offer you actionable steps for getting your business sale-ready. So if an enticing offer appears on the horizon, you’ll be ready to take advantage of it.
About Solganick & Co.
As an investment banking firm specializing in Technology and Digital Media companies, Solganick & Co. offers an in-depth understanding of each industry sector including macro and micro drivers that lead to a successful transaction. Experienced involvement with industry deals gives Solganick’s expert investment bankers an accurate depiction of current M&A trends and the present deal-making climate. We provide mergers and acquisitions (M&A) advisory services to CEO’s, company founders, board of directors, private equity firms and majority control shareholders.
For more information go to: Solganick.com