M&A Update Technology Sector | Q4 2023

M&A market developments and valuation environment in the fourth quarter

European M&A activity in the fourth quarter of 2023 continues to be subdued. Nevertheless, there is a positive trend in the valuation level across several subsectors, indicating an increase in valuations.

After a surge in transactions in the tech market in Q3, M&A activity in Europe has experienced a slight decline once again. The trend towards domestic transactions in both Europe and Germany continues to strengthen in 2023. Presently, nearly 50% of transactions are domestic, with almost 90% being carried out by strategic buyers. The count of European transactions decreased from 429 in Q3 to 334 in Q4.

Challenging macroeconomic factors continue to impact the operational aspects of the business, along with the prevailing interest rate environment. Valuation levels suggest a modest recovery, showing an upward trend in certain subsectors.

In our M&A update, we analyze the current valuation environment of the tech sector, focusing on the following developments in particular:

- The European M&A activity as well as background information on selected transactions

- The current valuation level in Europe and Germany

- Various sub-segments in the Tech stock market

Additionally, we showcase one of our recent tech deals in Germany: the acquisition of Seniovo GmbH by HORNBACH Baumarkt AG.

We hope you enjoy reading the report and look forward to exchanging ideas with you soon.