HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 61
SOFTWARE CONTINUES STRONG PERFORMANCE Within TMT, technology is clearly the most active space. Deal volumes for
changing market conditions, increasing inflation and interest rate hikes. One reason is that digital transformation remains top-of-mind for companies and organisations. TMT companies are providing much of the necessary infrastructure and solutions. Simultaneously, supply chain stresses and Russia’s invasion of Ukraine encourage further investments in digital solutions to build out resilience.
telecoms remain steady, while the recent dip in M&A deals within Digital Media and E-commerce has continued into 2022. Software remains the prime deal driver within technology, accounting for 79% of all TMT deals in 2022 Q1. Overall, the results illustrate TMT companies’ ability to continue performing and remain attractive to investors under
TMT MIDMARKET DEAL ACTIVITY SPLIT BY INDUSTRY SPACE 2020 Q1 2022 Q1
2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1
0
200
400
600
800
1000
Technology
Telecom Digital Media & E-commerce
Data: Mergermarket. Graph: BDO Global
CYBERSECURITY IN A PERFECT STORM Increased digitisation also means broader attack surfaces for cyberattacks. Work
As a result, companies and organisations have more demand for cybersecurity software and services. It acts as an industry tailwind, attracting capital to companies addressing these areas, bolstering the already strong performance of cybersecurity. According to Gartner, global cybersecurity spending exceeded USD 150bn in 2021. It is projected to reach USD 346bn by 2027, according to a study by Astute Analytica. Funding is also on the rise. Last year saw a record USD 21.8bn in venture capital injected into cybersecurity companies, according to Crunchbase data.
from home initiatives, growing use of cloud infrastructure and diverse solution ecosystems all increase risks. Simultaneously, attacks are becoming more sophisticated – and costly. 2021 set a seven-year high for average total data breach costs, according to an IBM study. Rising geopolitical tensions drive increased frequency and severity of attacks and loss of confidential and competitively sensitive data (between companies and countries). Governments, regulatory bodies, and industries themselves are introducing new /stricter data governance and compliance requirements for the protection and handling of personal data.
Made with FlippingBook HTML5