Tech M&A: Not Dead, Just Resting

The number of tech mergers and acquisitions fell precipitously in the fourth quarter of 2008, giving rise to fears that the market for software companies would dry up in 2009. But one investment bank says those worries are unfounded.

Despite the downturn, Software Equity Group, an investment bank and M&A advisory firm serving the tech sector, expects deals to get done at the same rate as 2008. That opinion is based partly on the firm’s own analysis and partly on a survey that asked tech companies about their M&A plans for the coming year. (And, yes, companies like Software Equity Group make money every time they match a buyer and a seller.)

On the surface, it looks like a bad time for deals.

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comments so far. Add yours.

  • http://www.frankthinking.com Frank Reed

    This is the perfect time to sit back and wait for the bargains to develop. As things progressively get worse for smaller players (despite great technology etc) they will have to turn to other options rather than trying to go it alone with terrible cash flow.

    Unfortunately, this downturn may do considerable damage to the small entrepreneurial creators because they will not be able find funding to even get off the ground. Just my opinion of course.

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