Jonathan Simnett, a director at Hampleton Partners, explains how tech entrepreneurs can prepare for M&A.
In today’s economic climate, mergers and acquisitions (M&A) activity is an integral part of the normal business cycle.
For technology businesses, it’s not only integral but essential as tech marches to its own globalised, highly competitive tune driven by unprecedented rates of fragmentation, consolidation and high expectations of growth.
Failure can come quickly in such a disruptive environment. Larger or fast-growing companies, which may have not existed a few years ago, have limited ability to innovate from internal resources. They often need to acquire to ensure they are not left behind in the race for technological change.
M&A is the new R&D
It’s generally not appreciated that tech giants like Amazon, Microsoft and Google have been built mostly on the technology innovations of others....