The Importance of Pre-deal Planning
As the pace of technological innovation quickens, mergers and acquisitions (M&A) can provide a good solution for accelerating product roadmaps, gaining access to new technologies and markets, and fending off competitors from both inside and outside one’s industry.
This strategy is especially evident in the technology, media, and telecommunications (TMT) sector which in 2017 recorded an all-time high of 3,389 M&A transactions globally, worth a total of $498.2 billion. Closer to home, Ireland’s TMT sector continues to attract global interest, and has become the global technology hub of choice when it comes to attracting the strategic business activities of ICT companies. Ireland has the second highest concentration of ICT multinationals in the world, second only to Silicon Valley. This is according to William Fry's Mid-year M&A Review 2018, which found that Irish TMT saw a clear increase in its share in overall Irish M&A volume year-on-year, now accounting for 20% of overall activity.
Two broad types of transaction are common across the TMT sector:
- The acquisition of larger, established firms who have become significant players in their own right; and
- Smaller deals focussed on growing or start-up firms who remain sub-scale from an international viewpoint but bring a specialism or IP which is unique.
In this article we discuss M&A trends in the TMT sector and outline a checklist for M&A success. This piece was written in partnership with William Fry.