What’s The Forecast for Tech M&A?

2024 Tech M&A Survey

Morrison Foerster is pleased to share with our clients and friends the results of our 2024 Tech M&A Survey, published in conjunction with Mergermarket. Mergermarket surveyed 300 dealmakers from around the world in order to gain valuable insights into the future of technology-related M&A.

According to the findings:

• 54% of respondents expect deal volumes to increase over the next 12 months, including 57% of private equity (PE) firms and 51% of corporates
• 53% of respondents note cybersecurity as the top subsector for future dealmaking opportunities, marking the second year in a row that the sector has topped the list
• 47% of respondents believe AI/machine learning targets offer the greatest opportunities, with 45% citing increasingly strict regulation as a primary obstacle for the sector
• 80% of private equity respondents expect to explore minority investments over the next 12 months, while 78% of corporate buyers will use earnouts or contingent considerations

The report is released against the backdrop of 2024 deal activity, which has seen aggregate deal value surge during the first nine months of the year by an impressive 39% to reach $483 billion, while deal volume has remained steady at 6,500 deals.

Read the report to learn more about these and other deal trends.

“We’re seeing a renewed appetite for big-ticket tech M&A, driven by improved buyer sentiment and a rally in key tech stocks. The tech M&A market is reawakening, marked by a trend towards fewer but heftier transactions. This energy is a decisive shift from last year’s retreat, laying the foundations for a recovery in 2025.”

- Brandon Parris, co-chair of Morrison Foerster’s global M&A practice