Technology sector leading in cross-border M&A activity

The technology sector is poised to take the lead in the realm of cross-border mergers and acquisitions (M&A) over the next half-decade, as indicated by the most recent Dealonomics report from Taylor Wessing law firm and Bayes Business School. The report forecasts that the US will spearhead both the quantity and value of deals, closely followed by the UK. Despite the geopolitical challenges and trade barriers instated by the former US President in early April, a staggering 74% of global dealmakers express optimism regarding the outlook for M&A activities in the forthcoming year. This sentiment is even more palpable in the UK (92%) and the US (99%).

Professor Scott Moeller, who serves as the Professor in the Practice of Finance and as the Director of the M&A Research Centre at Bayes Business School, finds the high confidence levels among the 850 surveyed dealmakers quite expected. Prof. Moeller highlights that M&A transactions remain a vital growth driver not only for individual companies but also on a broader national scale. The recent slowdown in deal-making has amassed a surplus of capital among potential acquirers. When the floodgates finally open, there is likely to be a surge in deal activity as companies strive to deploy these amassed resources effectively.

The UK emerges as the second most alluring market for cross-border M&A deals, trailing closely behind the US. A significant 57% of participants in the survey express a “very positive” outlook on the UK’s market for such deals. With the abundance of available opportunities in both the UK and US, companies are poised to capitalize on the resurgence of deal activity in the near future.

The tech industry stands as a beacon of resilience in navigating the intricacies of cross-border M&A, showcasing an unwavering determination to forge ahead in the face of uncertainties. As companies strategize to harness the potential opportunities that lay ahead, the tech sector’s steadfastness in embracing mergers and acquisitions continues to underscore its pivotal role in shaping the landscape of global business transactions.