By creating a mergers and acquisitions integration strategy and identifying value drivers early, tech firms can overcome potential headwinds.


Questions to ask
  • What can technology companies do to realize successful dealmaking in the current economic and regulatory environment?
  • What factors are affecting private equity dealmaking in the technology industry?

While 2023 was the year of efficiency, 2024 is shaping up to be the year of growth, with artificial intelligence (AI), cybersecurity and data analytics poised for significant tech mergers and acquisitions (M&A) activity. Buyers are incorporating integration strategies and identifying value drivers much earlier in in the dealmaking process to achieve value realization. However, geopolitical issues, delayed interest rate cuts and an aggressive antitrust environment pose challenges to tech M&A, necessitating careful planning to navigate them.

Elizabeth Kaske, EY Americas Strategy and Transactions Buy & Integrate Leader, and James Brundage, EY Americas Technology Leader, discuss what companies can do to plan for successful M&A in the current environment.

Watch our video to learn more about M&A in the tech sector.

Summary 

Flat interest rates and moderated inflation may help boost tech M&A later in 2024, with technology businesses focusing on growth through acquisitions. Geopolitical tensions, interest rate uncertainty and strict regulations present significant challenges, so early strategic planning — especially regarding due diligence, determination of value drivers, and M&A integration—is vital for successful dealmaking.

About this article

Authors

Related articles

M&A outlook signals rebounding US deal market in 2024

Based on economic and market indicators, the latest EY-Parthenon Deal Barometer predicts a rise in deals in the 2024 M&A outlook. Learn more in the report.

Macro Bites: How is M&E navigating the streaming services revolution?  

Learn how media and entertainment (M&E) companies are navigating the streaming services revolution in an unbalanced environment.

Energy M&A Quick Takes: How companies are transforming deal structures

In the Energy M&A Quick Takes video, EY leaders discuss oil and gas consolidation, and integrations that require more due diligence.