We get it. The headlines are scary—VCs getting killed, stock prices, new offerings tanking, inflation, etc. But what's happening in the trenches with private companies tells a different story.
The reality is that in tech M&A, "the beat goes."
Corum's perspective is unique. The industry's largest research database, combined with the fact that we've sold more tech M&A companies than anyone, has helped us build the industry's definitive tech M&A knowledge base. We host over 240 events annually, getting fresh input every 36 hours. We're tracking 120,000 companies.
The point is that no one knows more than we do. We continue to see a strong pace despite all the doom and gloom. In fact, our Mid-Year Global Tech M&A Research Report indicates that 2022 is even better than last year.
Since the start of the pandemic in February 2020, we've set records for most new clients and most deals closed each calendar year. Especially gratifying is the new and unique companies as well as repeat companies attending our M&A educational events. Record attendance at all of Corum's events.
More great technology companies have chosen to start a global auction process to sell this year than the previous 37 years. Our clients are experiencing bigger, better, stronger growth financially at this mid-year point versus their original forecasts, with continued strength into the remainder of 2022, and even well into 2023. Our view is this is still a strong seller's market.
With all the doom and gloom from the venture capital investors, with dire warnings about scaling back the "rapid growth at all costs" (losing money), those companies have absolutely been hammered valuation-wise! Over 37 years in the tech M&A market, we've seen this movie before, know how it plays out, and we like our market perspective and approach better than theirs!
Corum has never had so much buyer activity per engagement, per market sector, at any time in our history. If you aren't actively buying or selling, you are missing one of the best times ever. I've been in technology since 1982 professionally and have experienced the peaks and troughs of markets. This current market is similar in tone, but never has there been SO MUCH MONEY chasing technology deals, never this much! The mandate is to buy intelligently, which means "BOLT-ONS"! A few months back, we featured add-ons/bolt-ons in our monthly Tech M&A Monthly webcast, and since then, many reports have come out from other luminaries espousing the same! Mark Twain said, "history doesn't repeat itself, but it often rhymes," and this tech market has similar characteristics to other corrections, but this market is stronger and will remain so for 18-24 months! As long as you deliver value, have good customers, are growing, profitable, and choose market expansion opportunities wisely, I don't think even a recession will impact the tech M&A market that greatly!
As a tech company, you must be unique in your value proposition. Do you map to one of Corum's Top 10 Disruptive Tech Trends, where the investment and acquisitions are? If so, you can sell and probably should consider going to market sooner rather than later. In correction times, the zombie companies disappear, market consolidation happens, the best get acquired first, and eventually, enough consolidation happens whereby unless you have been rolled up, it may not happen. Your main competitor is part of a bigger, better-financed entity, and you will have challenges.
But, be scared, be smart, be cautious. It is time to act. We've seen a 12-year bull market come to a screeching halt. Things can change fast—not for the better—you don't want to lose your window.
A recent CEO conference attendee comment echoes what all baby boomers should be worried about—"I don't want to die at my keyboard."