writes Ian Barton, partner, corporate finance.
The relentless pace of technological change has meant that growth in the UK’s technology sector continues to outstrip that of the economy as a whole. By the end of last year, the digital sector was worth £184 billion, up by 8.2% from the previous year.
The positive health of the technology market, which comprises of clusters of balanced, scale-up and start-up companies in the UK, together with a proactive investor and acquirer market, is indicative of increasing M&A activity.
The opportunities presented by the accelerating technological evolution are far-reaching and include the generation of both employment and investment opportunities. However, the rapid growth also brings with it significant challenges. Although many companies wish to recruit heavily over the next few years, they are unable to do to so due to lack of existing funding and appropriate talent available to recruit. This has led to a boom in acquisitions and private equity (PE) investment in this space to fill corporate demands in the sector.
So, what does this mean for technology businesses?
For many non-tech companies, harnessing the pace of rapid technological change can be best achieved by making strategic acquisitions of smaller, innovative technology players and then applying their developments to their own business offerings.
This situation represents real opportunities for smaller players to realise substantial value and for larger players to consolidate as well as differentiate their position in the marketplace.
Some of our recent successes
Having successfully completed a range of deals in this sector, the corporate finance team at Quantuma are in an optimal position to help you understand the market and achieve your ambitions. We can work with you to identify acquisition targets, support you in raising funds, or help you if you are looking to exit and maximise your returns.
If you are an ambitious, entrepreneurial business looking to explore growth opportunities in this sector we would be delighted to share our expertise and experiences with you.