Who the blogs on No Monkey Business, know what the merger and acquisition market for technology companies was like before the summer. And, cliff hanger, that situation is… unchanged. There is economic uncertainty due to high inflation and the war in Ukraine. Due to this uncertainty, buyers have become more critical in recent months, for example when it comes to the profitability of a potential acquisition candidate.
However, I am anything but pessimistic. Because while that uncertainty has put a brake on merger and acquisition activity in some sectors, this applies to a lesser extent for technology companies – and certainly in the Netherlands. what I see (and many with me), is that tech companies are in constant demand. Such as, for example, with strategic parties that now more than before see the need to digitize.
Purchasing power issues and recession fears
What will the rest of the year bring? The Dutch economy running surprisingly well until further notice, the Central Bureau of Statistics (CBS) released at the beginning of August. Year-on-year growth is no less than 5.6 percent in the second quarter – and 2.6 percent growth on a quarterly basis.
The question, however, is whether that party will last. I just wrote it: the war in Ukraine, high inflation and extreme gas prices lead to uncertainty and purchasing power issues. In Eastern Europe in particular, there is now talk of economic contraction.
A well-prepared entrepreneur…
What to do as an entrepreneur For entrepreneurs who are considering bringing an investor on board for a next growth phase, or who are considering selling their business (or both), it is very important with the above trends in mind to as tight as possible company to put down.
I also recommend setting up a top company during peak times, but it is all the more important now. A critical buyer, even if he really wants to buy, needs more conviction in uncertain times to – put plainly – deep into their pockets.
Concrete advice: pay attention to more than just growth
My advice for this fall is therefore: don't just work on the growth of your company. Of course, growth is and remains mega-important, especially in the tech sector. But there are so many other aspects that matter.
No Monkey Business distinguishes 16 themes that you can pay attention to in order to be able to sell your company optimally. We publish an ever-expanding series of articles about those 16 Numbers a, two, three and four are already online – the remaining 12 are in the works.
Reason enough to visit our site every now and then nomonkeyubusines.eu to visit. Or… just get in touch. For entrepreneurs who want to look beyond the current market and / or have a dream exit in mind, the coffee is always ready with us.