M&A market is rebounding, thanks to financial and IT spending

BVWireIssue #108-1
September 14, 2011

M&A activity in the U.S. increased 8% in the first half of 2011 compared with the same period in 2010, reports Ari Goldschneider (Grant Thornton) in Dealmaker (Summer 2011). Activity from financial buyers accounts for 40% of overall growth in M&A activity.   “Finding a willing financial buyer is becoming more feasible as funds keep chipping away at their large quantities of uninvested capital and the debt market for sponsor-based deals remains stable,” says Goldschneider.

According to the Q2 2011 Software Equity Industry Report, “public software, Internet and software as a service (SaaS) market valuations benefited from the rebound in IT spending, record levels in Internet retail sales, and sharply higher online advertising spending.”  

Valuing a software company? BVR has just added “Software Firms: Update on Industry Information” as a free download here.

Please let us know if you have any comments about this article or enhancements you would like to see.