The IT industry is complex and operates in a rapidly growing digital landscape, which results in higher valuation multiples compared to other businesses. To stay competitive, it’s crucial to have a good understanding of consulting, mergers, and acquisitions (M&A). To make sound investments or get a premium price while selling, companies need to keep up with the latest technological advancements, market opportunities, and industry trends. Today, we will take a closer look at M&A deals and multiples in Europe in 2023.
What does an M&A and corporate finance report cover?
For a comprehensive insight into IT Consulting & IT Services, it is advisable to download and analyse the M&A and Corporate Finance reports, to be kept up-to-date with a wide range of topics. The report by KP Tech M&A Boutique gives business owners an overview of the situation of IT Consulting and IT Services.
There has been a surge in merger and acquisition (M&A) activities across Germany, Austria, Switzerland, Europe, and globally throughout the year. Notable transactions took place quarterly in both Europe and the USA, with a focus on six outstanding acquisitions in the sector during the first half of the year.
Significant deals involving strategists and private equity firms, shaping the industry’s landscape are also worth mentioning. The reflection of the evolving market dynamics was the changes in CM&A multiples within IT Consulting and IT Services observed. Additionally, the performance of listed IT Consulting and IT Services companies in Europe was tracked and divided into subsectors. The development of share prices and EV/Revenue & EV/EBITDA multiples by subsector in Europe providing insights into the sector’s growth and valuation trends.
The overview of M&A deals
The report from KP Tech provides an overview of the M&A activity, highlighting the diversity and high level of changes in the market. Towards the end of 2022, there was a noticeable trend of a slowdown in deal activity, which continued into 2023. This year was marked by a dose of uncertainty in global politics and macroeconomics. This will lead to a swift change in the strategies of both buyers and sellers.
Upon closer inspection of the DACH region, one can easily observe a 24% decline in deal volume. High interest rates had a significant impact on M&A activity in the IT Services industry, making M&A deals more expensive. The deal valuations and transaction dynamics were also modified due to the unfriendly credit environment. However, the second half of 2023 was quite positive for deal closures, with a considerable rise experienced.
Why can you trust KP Tech specialists?
The professionals at KP Tech recognize the crucial significance of thorough report preparation, which can greatly influence investment decisions. The company specializes in a few areas, including company acquisition and sale, company succession, company valuation, and private equity. KP Tech has an impressive transaction volume ranging between USD 5 million to 200 million.
The company’s effectiveness is proven by its success in over 800 technology transactions. Over 80 of them involving companies from Germany, Switzerland, or Austria. KP Tech is a well-known M&A Boutique, providing expert advice throughout the entire corporate finance process with finance advisors who have more than 20 years of experience in M&A, as well as experience in technology companies.