Corporations scooped up a record-breaking 2,484 tech companies in a single quarter during the height of the pandemic-driven tech boom, but transaction activity has fallen 30% from this high seen less than 2 years ago.
The CB Insights Tech M&A Q2’23 Report highlights that the number of M&A transactions by corporations has eroded in the quarters since — hitting just 1,728 in Q2’23 as economic uncertainty and rising interest rates have driven corporations to become firmly risk-off when it comes to tech M&A.
For those in corporate development, venture capital, or private equity, you can dig into more acquisition data and trends — from valuation per employee to cross-border M&A activity — in our full Tech M&A Q2’23 Report.
Despite the overall decline, the proportion of tech M&A deals done by strategic buyers vs. financial sponsors (private equity) has actually climbed since 2019. In Q2’23, 92% of all tech M&A transactions were done by strategic buyers.
However, while strategic buyers comprise a growing share of total M&A activity, financial sponsors are behind nearly 1 in 4 tech M&A deals worth $100M+.
To dig into financial sponsor and strategic M&A trends and data, download the entire Tech M&A Q2’23 Report.
