Reintroducing The Technology Industry Report
In this Technology M&A Industry Report, we explore the M&A activity from 2024 and projections for 2025 and beyond across our select areas of expertise within the Technology industry. Our Technology Practice Group experts share their insights on the current state of the Tech M&A market and look at the factors influencing the broader Tech industry.
Select Insights:
- Investors Shift Focus From Growth to Profit: Growth has become more challenging to achieve and has declined across cohorts. Although unprofitable companies show higher revenue growth, investors are focusing on profitability, valuing predictability over costly growth. However, as interest rates decrease, investor preferences will shift back toward growth-focused companies, consistent with historical trends.
- AI and Machine Learning Take Center Stage: Advances in generative AI and other technologies created opportunities for dealmaking in the technology, media, and telecommunications sectors during the second half of 2024. This focus reflects the industry’s commitment to innovation and addressing evolving technological demands.
- Private Equity Is Driving the Tech Revolution: Private equity firms continued to be pivotal in the U.S. software M&A landscape, focusing on acquiring software assets with high levels of recurring revenue and strong margins. This trend underscores private equity’s influence in shaping the software industry’s structure and growth.
- Accelerated Deal-Making: Intense competition for software assets highlights growing investor enthusiasm, with deals closing faster and often involving all-equity financing. Rising deal preparation activity suggests a busier-than-usual summer for software M&A, signaling positive momentum in the market.
- Rise of Embedded Finance in Vertical SaaS: Many vertically focused SaaS platforms are integrating embedded financial services such as payments, lending and insurance directly into their software. This allows businesses in industries like healthcare, construction and logistics to streamline financial operations without relying on third-party providers. For example, construction SaaS platforms now offer built-in project financing and payment processing, improving cash flow management.
To read the full Technology Industry Report, download below
If you are interested in discussing any of the analysis from this report, or if you would like to discuss your own transaction goals contact Thomas Lin, Director, of our Technology Practice.
Disclosure
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
