Axial Network Report: 2011 Technology M&A / Deal Activity Summary

Since January 2011, 978 advisors have researched and brought to market over 2,900 companies through the Axial network. This report takes a closer look at the activity within the Technology sector on the Axial network during that time.

Through the third quarter of 2011, Technology was the second most active sector on Axial representing 18% of all opportunities. 522 companies came to market within the Technology sector, ranging in company size from $0 to over $528 million in revenue, both within the United States and abroad.

Technology M&A activity insights include:

• IT Consulting represented 6.7% of the Tech opportunities (second highest), yet only received a 5.6% Pursuit rate (second lowest), showing an oversupply of opportunities.
• Internet Software & Services was the only subsector ranked in the top quartile by opportunity to also have ranked in the top half by Pursuit Rate.
• Semiconductors and Office Electronics represented the largest deals by both Revenue and EBITDA, perhaps due to the maturity of these subsectors.
• The Mountain West region sputtered from Q1 when it made up 13% of deal flow to Q3 when it made up only 7%, roughly halving in relative share.