Dr. Jens Kengelbach

The M&A market for software companies has been booming. The cumulative value of software M&A deals soared to an all-time high in 2020 even as overall M&A activity decreased. And the volume of software deals has continued to grow, approaching the record level of the dot-com bubble. Nontechnology companies and financial sponsors are helping to fuel the hot market, as they increasingly join traditional technology players in pursuing software targets.

The 2020 M&A Report takes stock of an eventful first nine months of the year and looks ahead to how the COVID-19 crisis might shape a new reality for M&A. In this context of disruption and uncertainty, we examine the increasing popularity of alternative deals. In these deals, rather than acquiring control of and integrating a target, companies acquire minority stakes or establish cooperative arrangements—such as through joint ventures, strategic alliances, or corporate venture capital… Mehr anzeigen

The 2020 M&A Report takes stock of an eventful first nine months of the year and looks ahead to how the COVID-19 crisis might shape a new reality for M&A. In this context of disruption and uncertainty, we examine the increasing popularity of alternative deals. In these deals, rather than acquiring control of and integrating a target, companies acquire minority stakes or establish cooperative arrangements—such as through joint ventures, strategic alliances, or corporate venture capital investments. Companies can use alternative deals to gain access to capabilities that help them address not only the pandemic-induced crisis but also ongoing trends such as technology-driven disruption and the convergence of industries. Weniger anzeigen

The COVID-19 crisis has amped up the complexities and stress of M&A more than ever. Many buyers and sellers have postponed, frozen, or aborted deals: in fact, 73% of respondents in a recent BCG M&A Pulse Check survey said that they had seen deal valuations being renegotiated. What’s more, dealmakers expect the economic crisis to keep M&A deal volume low and prices depressed for a prolonged period.

Even before the coronavirus pandemic erupted around the globe, the easy period of economic expansion in the Asia-Pacific (APAC) region was coming to an end. The US-China trade war and broader economic uncertainty had already slowed organic growth—and M&A deal activities began to pick up speed in the region as companies sought growth through inorganic means.

Dealmakers should anticipate that the COVID-19 crisis will add to the complexity of regulatory approval. They should prepare for a slower clearance process in the near term and expanded regulatory scrutiny of deals over the long term. The pandemic has, understandably, affected the operations of regulatory authorities.

Throughout January and February, financial markets seemed to be resilient against the fallout from COVID-19, the disease caused by the novel coronavirus. Some market participants thought that the virus could be confined primarily to China or that countries with a strong health care system would not be hit as hard.

This article—the third in a series exploring the practicalities of going public—looks at what’s necessary for a successful IPO in today’s market, particularly when seeking new capital. The first publication, “Anatomy of an Ideal IPO Candidate,” examines how companies can overcome the barriers to going public and survive the scrutiny of the capital markets. The second, “What Really Matters for a Premium IPO Valuation?” analyzes some of the tools that companies can use in the effort to yield a… Mehr anzeigen

This article—the third in a series exploring the practicalities of going public—looks at what’s necessary for a successful IPO in today’s market, particularly when seeking new capital. The first publication, “Anatomy of an Ideal IPO Candidate,” examines how companies can overcome the barriers to going public and survive the scrutiny of the capital markets. The second, “What Really Matters for a Premium IPO Valuation?” analyzes some of the tools that companies can use in the effort to yield a higher IPO listing price. Weniger anzeigen

The 2019 M&A Report examines how dealmakers should think about M&A activity in a downturn. Our recommendations are based on a study of the returns of dealmaking throughout the economic cycle. Simply put, our research shows that downturns can be excellent times for dealmaking. But success requires careful preparation, thorough execution, and, especially, bold decision making.

Many multinational companies have used M&A to establish a presence or expand operations in the world’s second-largest economy. But many more have not, especially in recent years. According to Thomson Reuters, inbound transactions represented only about $75 billion of the $287 billion in total M&A volume in China in the first three-quarters of 2014 (although it should be noted that $75 billion is double the levels seen in the previous ten years). And fewer than 50 out of some 2,500 deals since… Mehr anzeigen

Many multinational companies have used M&A to establish a presence or expand operations in the world’s second-largest economy. But many more have not, especially in recent years. According to Thomson Reuters, inbound transactions represented only about $75 billion of the $287 billion in total M&A volume in China in the first three-quarters of 2014 (although it should be noted that $75 billion is double the levels seen in the previous ten years). And fewer than 50 out of some 2,500 deals since 2009 have been acquisitions by multinational corporations valued at more than $100 million in which the buyer has taken ownership of 30 percent or more of the target (not including pure financial investments such as private-equity acquisitions or asset restructurings). Weniger anzeigen

The years since 2016’s seismic political events on both sides of the Atlantic have been surprisingly ordinary for the M&A market. Despite persistent uncertainty and a less favorable regulatory environment in the US, deal activity—in terms of both value and volume—remained fairly steady in 2017 compared with 2016. And the first half of 2018 brought abundant reasons for anxiety, as many feared that dizzying market plunges and escalating trade wars would suppress deal making. But a pullback did… Mehr anzeigen

The years since 2016’s seismic political events on both sides of the Atlantic have been surprisingly ordinary for the M&A market. Despite persistent uncertainty and a less favorable regulatory environment in the US, deal activity—in terms of both value and volume—remained fairly steady in 2017 compared with 2016. And the first half of 2018 brought abundant reasons for anxiety, as many feared that dizzying market plunges and escalating trade wars would suppress deal making. But a pullback did not materialize. Deal value in the first half of 2018 exceeded the first-half average for the period dating back to 2009. Somehow, dealmakers have not let themselves be diverted from their core pursuit. Weniger anzeigen

Many multinational companies have used M&A to establish a presence or expand operations in the world’s second-largest economy. But many more have not, especially in recent years. According to Thomson Reuters, inbound transactions represented only about $75 billion of the $287 billion in total M&A volume in China in the first three-quarters of 2014 (although it should be noted that $75 billion is double the levels seen in the previous ten years). And fewer than 50 out of some 2,500 deals since… Mehr anzeigen

Many multinational companies have used M&A to establish a presence or expand operations in the world’s second-largest economy. But many more have not, especially in recent years. According to Thomson Reuters, inbound transactions represented only about $75 billion of the $287 billion in total M&A volume in China in the first three-quarters of 2014 (although it should be noted that $75 billion is double the levels seen in the previous ten years). And fewer than 50 out of some 2,500 deals since 2009 have been acquisitions by multinational corporations valued at more than $100 million in which the buyer has taken ownership of 30 percent or more of the target (not including pure financial investments such as private-equity acquisitions or asset restructurings). Weniger anzeigen

Many multinational companies have used M&A to establish a presence or expand operations in the world’s second-largest economy. But many more have not, especially in recent years. According to Thomson Reuters, inbound transactions represented only about $75 billion of the $287 billion in total M&A volume in China in the first three-quarters of 2014 (although it should be noted that $75 billion is double the levels seen in the previous ten years). And fewer than 50 out of some 2,500 deals since… Mehr anzeigen

Many multinational companies have used M&A to establish a presence or expand operations in the world’s second-largest economy. But many more have not, especially in recent years. According to Thomson Reuters, inbound transactions represented only about $75 billion of the $287 billion in total M&A volume in China in the first three-quarters of 2014 (although it should be noted that $75 billion is double the levels seen in the previous ten years). And fewer than 50 out of some 2,500 deals since 2009 have been acquisitions by multinational corporations valued at more than $100 million in which the buyer has taken ownership of 30 percent or more of the target (not including pure financial investments such as private-equity acquisitions or asset restructurings). Weniger anzeigen

One of the early casualties of the financial crisis that began in the autumn of 2007 was the global market for initial public offerings (IPOs). The number of companies making their debut on public stock markets plummeted in 2008, falling even below the depths plumbed during the dot-com bust in the early years of the decade. The average value of IPOs also fell sharply as confidence ebbed and stock prices fell.

Book