Deloitte’s biannual survey of UK technology companies shows heightened optimism for mergers and acquisitions in the year ahead, with cloud services and mobile apps amongst the hottest sectors.
But, despite a growing number of planned tech stock flotations, Deloitte warns: “Following a difficult 2010, few technology leaders believe that the next 12 months will prove a good time to float a UK technology company.”
The number of tech companies expecting increasing investor appetite for tech IPOs has halved from 33 percent to 16 percent.
Deloitte’s capital markets partner John Hammond: “Well publicised details of eleventh hour valuation revisions and pulled flotations (across all sectors) have not been conducive to building management confidence in new listings. Nevertheless, a compelling growth strategy and good timing may allow some companies to buck this trend.”
Technology partner Conor Cahill: “M&A valuations are expected to increase in the next 12 months as auctions become more competitive. The favoured sectors that will attract a premium are those that support and embrace cloud based solutions, while diagnostic software is particularly important to understand changes in customer behaviour.”