What Would an Economic Downturn Mean for Technology M&A Activity, and How Should Buyers and Sellers Get Ready for the Coming Cycle?
Foley & Lardner – Starting with a sell-off in public technology stocks (trading “FAMMGA” is no longer a winning strategy), the outbreak of war in Europe, upcoming midterm elections in the US, out of control inflation, rapidly rising interest rates, rotating COVID19 shut-downs in China rippling through the supply chain, escalating prices at the pump, threats of war in the Taiwan straits, and increasing regulation by enforcement, all while the world has otherwise seen a return to “in real life” activity after two years with minimal in-person events, have had sweeping effects from the gas station to the grocery store to capital markets to technology M&A activity. How is this impacting tech M&A activity? Common sense would tell us that with falling tech valuations, tech acquisitions would be on the rise. But is that actually the case?