Managing Unsolicited Offers: Why Work with an Advisor?
January 24, 2023
We are hearing a lot of differing opinions on what is to come for the broader economy in 2023 and the impact this will have on M&A in the technology sector. Although we are only a few weeks into the year, most tech M&A advisors are cautiously optimistic. There is still a ton of capital available and buyers haven't pulled back on their acquisition strategies. However, buyers have become more cautious amid today’s uncertain environment and are even more focused now on decreasing their risk and willing to wait for the “right” acquisition target. Although the metrics that were important at the height of the market in 2021 and 2022 remain key (revenue growth, high gross margins, strong customer retention, large TAM, etc.), we are now seeing more emphasis on profitability. The message we are hearing from buyers and investors is no longer “growth at any cost” but has shifted to profitability or path to profitability.
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