Brenon Daly oversees the financial analysis of the Market Insight and KnowledgeBase products at 451 Research, a part of S&P Global Market Intelligence, having covered more than a quarter-trillion dollars' worth of deal flow for both national publications and research firms.
Brenon began his career in 1991 as one of the initial reporters at Prognosis, the first English-language newspaper in the former Eastern Bloc. While there, he covered the Czech Republic's transition to a market economy, as well as larger financial stories across the region. Brenon moved to Vienna in 1995 to run the local bureau for United Press International. In addition to reporting extensively on Austrian politics and economics, he also coordinated and edited EuroBusiness stories from correspondents in Slovakia and Hungary. After UPI, Brenon moved to an analyst position with the Economist Group, where he researched and wrote reports for The Economist Intelligence Unit and the regional publication of The Economist.
Returning to the US in 1997, Brenon helped establish the editorial voice in the early days of financial news site CBS MarketWatch. During his time there, he helped launch OptionsWatch, covering options trading, and MarketPulse, a minute-by-minute report on stock activity licensed primarily to brokerages. Since 2000, Brenon has focused his reporting on M&A as a reporter for The Deal. During that time, he also sharpened his analytical skills, writing reports for TechDealmaker (since acquired by 451 Research) and the boutique research firm Intellectual Capital Associates.
After finishing 2022 with the largest ever year-over-year drop in M&A dollars spent, tech dealmaking is starting 2023 even weaker. The value of tech acquisitions announced globally in January slumped to the lowest monthly total since the pandemic. Even the recent "relief rally" for tech on Wall Street hasn't been enough to get big corporate buyers acquiring again.
After dialing for dollars in information security, a pair of telecom giants may be hanging up on those M&A-backed initiatives. 451 Research has learned that two communications behemoths are looking at divesting the sizeable security businesses they acquired in a pair of deals that, collectively, cost them more than a billion dollars.
What if tech isn't all that special? What if companies aren't automatically worth the inflated birthright premiums lavished on certain markets? What if the recent "digital transformation" trend that blew out the top line of tech vendors turns out to be more marketing than mandate? What would that mean for M&A?
After years of soaring above the economy, tech got dragged down in 2022. Growth stalled, markets sputtered, stocks plunged. Last year snapped tech's decade-long up-and-to-the-right trajectory, which had helped fuel a record run for M&A in the sector. The once-exceptional "new normal" for tech dealmaking now looks a lot more normal than it has for some time.
After years of soaring above the economy, tech got dragged down in 2022. Growth stalled, markets sputtered, stocks plunged. Last year snapped tech's decade-long up-and-to-the-right trajectory, which had helped fuel a record run for M&A in the sector. As we head into 2023, the once-exceptional "new normal" for tech dealmaking now looks a lot more normal than it has for some time.
Along with the rest of tech, deals got discounted last year. Prevailing pricing for tech acquisitions dropped by about one-quarter from recent record highs, although valuations are still lofty compared with historical averages. The market's munificent multiples may be coming down even more in 2023.
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