26 June 2014
A comprehensive new report from BDO has, for the first time, shed light on the scale of deal activity within the burgeoning global tech industry.
BDO Corporate Finance Partner in Australia, Sebastian Stevens, indicates that international private equity investment into Australian technology businesses is increasing with the market rebounding strongly, seeing a significant increase in IPO’s over the last six months and activity levels not seen over the last four to five years.
BDO’s inaugural TECHtalk report has uncovered the health of activity within the sector, revealing two separate indicators.
Global economic positivity has resulted in buoyed confidence for tech entrepreneurs, with M&As; reaching a 14 year high. 211 technology related transactions closed in Q1 2014, totalling more than $54 billion – the highest total value for an opening quarter since 2000.
Despite initial indicators signalling a robust first quarter for global technology IPOs, fears of a second dot.com bubble and rising geopolitical instability in Ukraine resulted in nervous investors pulling out of investments in tech IPOs. At the start of 2014 company valuations soared, with the average IPO up almost 25% from its offer price, however by the end of the quarter, all of the software stocks which launched in Q1 finished below their debuts.
Seeking the right advice at the right time, has never been more important for those companies looking to thrive in the tech sector, and to ensure they are able to adapt quickly to the fast changing marketplace.
Read the Global TECHtalk Report and for more information please contact your local TMT Adviser.