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‘Nagging’ concerns over U.S. economic growth temper tech M&A market: Survey

A more subdued picture emerges from the latest survey of technology dealmakers conducted by global law firm Morrison & Foerster and syndicated technology research and advisory firm 451 Research. The percentage of technology insiders...


October 31, 2012  


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A more subdued picture emerges from the latest survey of technology dealmakers conducted by global law firm Morrison & Foerster and syndicated technology research and advisory firm 451 Research. The percentage of technology insiders reporting an increase in M&A activity during the previous six months fell sharply compared to the inaugural survey in April, the firms report.

Newly released data from the M&A Leaders Survey shows that the number of tech industry executives reporting a recent jump in deal-making — 39% — was nearly identical to those experiencing a decline — 37%.

“Most dealmakers cite uncertain prospects for the U.S. economy as the prime cause of their reluctance to execute transactions,” the firms said. “More than 70% of the 300 respondents participating said doubts about the sustainability of economic growth in the U.S. have been a significant drag on M&A activity in 2012.

“Despite the increased pessimism, there are clearly pockets of positive sentiment among technology’s dealmaking community. For example, the 49% of respondents who say they expect acquisition activity to increase in the next six months is nearly three times the 17% who anticipate a drop-off in deals.

The M&A Leaders Survey, conducted semi-annually by MoFo and 451 Research, is designed to take the pulse of tech industry insiders on the dealmaking market.