No assessment of future M&A activity would be complete without considering tech, which for so long has been the biggest sector for deal value and volume.
Despite tech stocks taking a hit in 2022 after a stellar run through the pandemic, we expect appetite for the most sought-after assets – including semiconductors and software – to continue, not least because strategic buyers remain well-capitalised.
Crypto trading platforms set to be active buyers
One interesting area to watch in 2023 will be deal activity around crypto assets, the Metaverse, NFTs and Web3.
In North America, crypto-related M&A volumes in 2022 remained strong – not quite reaching their 2021 peak but higher than in 2020 – and despite the collapse of FTX we expect trading platforms to be among the most active buyers in the months to come.
We are also seeing strong interest from outside the sector with consumer businesses looking to copy the success of brands such as Nike, which has leveraged its acquisition of digital asset developer RTFKT to drive deeper engagement with its customers by packaging virtual sneakers with the sale of physical products.
NFTs continue to interest consumer brands
The desire to replicate these sorts of innovative business models will generate future M&A activity as brands buy in new capabilities, while we also expect tech companies to continue targeting systems integrators who are developing ways to port digital assets between platforms.