Tech PE funds dominate the deal activity in early 2023 with 62% of all deal value for announced deals in the first quarter. Eight of the ten largest tech deals had PE buyers. Those eight deals were all take-privates with a median enterprise value of $1.4B and a median revenue multiple of 5.5x. Annualized deal values for the quarter have plummeted from $800B in '21 to $185B. While the annualized number of deals getting done is inline with '21 and '22, the deals are much smaller, with 63% of the selling companies having fewer than 50 employees. With strategics remaining cautious maybe due to the economy or possibly the FTC's recent aggressive posture, IPOs shutdown, and SPACs buried alive, the easiest path to liquidity has become the PE or the PE portco. There are now over 300 global tech PE funds with $1.5T in AUM and 4,500 portcos.
© In the U.S., America’s Growth Capital, LLC dba AGC Partners, member FINRA/SIPC. In Europe, America’s Growth Capital Europe, LLP (Appointed Representative Alternatives St. James, LLP which is authorized and regulated by the Financial Conduct Authority). America’s Growth Capital Europe, LLP is a Limited Liability Partnership incorporated in England and Wales (OC368580). Its registered address is 6th Floor, 9 Appold Street, London EC2A 2AP. The testimonials contained herein may not be representative of the experience of other customers or clients. Testimonials are no guarantee of future performance or success. Deals marked with an “*” are non-AGC deals.
