|
|
|
26 Jan 2010
Comments:1
The UK technology market is ripe for a flurry of merger and acquisition (M &A) activity in 2010, following a six-year low in deals last year.
According to PricewaterhouseCoopers LLP (PwC), the number of completed deals in the sector fell from 66 to 23 in 2009 – the lowest number since 2003. Deal volumes fell from €6.8m (£5.9bn) to €3.3bn (£2.9bn).
Just seven deals were backed by private equity, compared with 19 in 2008.
Further reading
IT services giant Capita Group completed two of the 10 biggest deals, buying networking and managed services specialist Synetrix for €84m and Cisco Gold partner Carillion for €41m. Distributor Avnet’s €140m purchase of Abacus was the third-largest deal.
However, according to PwC, the UK tech M&A market has now “awoken” following a period of “deep sleep”.
Andy Morgan, partner, PwC, said: “Recovery in UK tech M&A appears less pronounced than in the US where mega-deal announcements have provided momentum.
“However, the right conditions appear to be in place to mean a tipping point into the next stage of the deal cycle and local confidence is starting to return.”
Related articles
In this video find out about the fast-growing Chinese vendor's plans for market domination and how the channel is its route of choice
Find out what gifts Acer has in store for partners for 2012 in this exclusive roundup of its recent conference
CRN's premier networking event is back on 17 May at the Ricoh Arena
Date: Thu 17 May 2012
Channel fighters preparing to square up once more on 24 May
Date: Thu 24 May 2012
The proliferation of endpoint devices within the enterprise has highlighted the shortcomings of one of the traditional approaches to data security
This Forrester report compares the costs and benefits of legacy email and productivity software with Google Apps
Dave discovers that rozzers are seemingly living in the technology dark ages
Mark Needham, founder of distributor Widget, argues that John Browett leaves for Apple with Dixons in better shape than when he arrived
|
|
|
Do you agree?
Understanding asset value
The mergers and acquisitions market may be showing tentative signs of recovery, but poor asset management could be compromising corporate value and potentially jeopardising planned mergers and acquisitions.
While many UK organisations appear highly confident of the value of their corporate assets, claiming 95 per cent accuracy of the asset register, in reality at least 20 per cent of assets no longer exist and another 40 per cent are so poorly described that they can't be matched to any physical asset.
With such a lack of robust information how can any organisation undertake due diligence on behalf of shareholders?
Without accurate records, potential acquirers will struggle to put a correct figure on asset value. Without access to a consolidated asset register that also records asset maintenance, it is extremely difficult to ascertain an asset's longer term value to the business.
Organisations cannot blithely accept the figures in the asset register as a true indicator of corporate value; a full asset audit is essential to ensure due diligence.
Posted by Karen Conneely | 26 Jan 2010
Have your say