High-quality SaaS, e-commerce and content businesses with solid growth trajectories are in high demand. The pandemic accelerated tech adoption and will likely drive more acquisitions in 2022 and beyond, according to a new report by M&A advisor FE International (FE).
NEW YORK, Aug. 4, 2022 - Buyers and sellers in mid-market M&A posted record deal flow in 2021. This growth was evidenced across the entire technology M&A spectrum, and particularly in SaaS, where acquisition volumes doubled compared to 2020. Despite the current weaker macro-economic landscape, there are ample opportunities on both sides of transactions.
At FE, we're seeing strong demand for high-quality businesses with solid growth trajectories, especially as more capital flows into strategics and private equity firms with investors seeking shelter from the stock markets and other vanilla investment classes.
In our newly published Mid-Year Reports, FE outlines the current state of the market and where we're seeing exponential growth.
Key FE Data 1H' 22:
59% increase in value of closed deals in the first half of 2022, compared to the first half of 2021
Buyers in our network represent nearly $41 billion in capital in mid-2022 – a number that is consistently growing (it was just under $39 billion at the end of 2021)
In the first half of 2022, the total value of e-commerce closed deals is nearly triple that of the first half of 2021
In the content vertical, we're seeing growth in the education space, which represents almost 25% of our deals so far in 2022 in this sector
One thing is clear: the pandemic has accelerated tech adoption and will likely drive more acquisitions in 2022 and beyond. Companies are consolidating, growing scale and aggressively pursuing business transformation through M&A.
For an in-depth look at the current M&A landscape for technology businesses, including the latest market projections and unique FE data, download our Mid-Year Reports for 2022.
About FE International
Founded in 2010, FE is known for its extensive network of pre-qualified international investors. Its team includes experts in exit planning, valuation, accounting, legal and more.
FE serves clients worldwide with headquarters in New York and regional offices in Miami, San Francisco and London. It was named one of The Americas' Fastest Growing Companies in 2022, 2021 and 2020 by The Financial Times and is also a three-time Inc. 5000 company.
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SOURCE FE International
