Prepping for HCTS – Q&A with Research Vice President Brenon Daly

Research Vice President Brenon Daly, who oversees the financial analysis of 451 Research's Market Insight and KnowledgeBase products, will be at the 14th annual Hosting & Cloud Transformation Summit this year. He'll be joined onstage at our Tech M&A Breakfast by Chris Moon, Managing Director at ING, to discuss broad-market tech M&A.

Q: Has there been a M&A breakfast at previous summits?
A: We haven’t hosted a tech M&A breakfast in four years, at least not one that focuses on the overall tech market. During the more-recent summits, we held M&A Breakfasts that focused exclusively on the hosting and services market. We’re bringing back this former favorite because the activity this year is calling for it. The value of tech transactions this year is tracking to the second-highest annual total since the internet bubble burst. Given the almost unprecedented resurgence of acquirers from all tech sectors, we’ll be expanding our look at the market. Spending on tech deals in 2018 has already eclipsed full-year 2017, while the number of acquisitions is rebounding after dropping almost uninterruptedly since mid-2015. It’s a more-robust tech M&A market than any recent year – we have a lot to talk about.

Q: What was your biggest take away from any previous HCTS?
A: My biggest take-away is no transaction happens in a vacuum. Buyers and sellers – regardless of whatever sector they operate in – need to pay attention to the overall M&A market because the current trends – even seemingly unrelated ones – can have a direct impact on the pricing and timing of their transactions.

Q: What can we expect at the M&A Breakfast?
A: We’ll start with a look at spending and volume in the overall tech M&A market. We’ll also surface a number of key trends that are driving activity including a record number of big prints, with the current pace running at two $1bn+ transactions announced each week; the continued acceleration of PE buyers, who are accounting for one-third of all tech acquisitions; and some recent developments in the exit environment for VC-backed companies, where liquidity is drying up.

Q: What can HCTS attendees hope to gain from the breakfast?
A: In addition to the trends I have mentioned, I’ll also have some insight around M&A valuations, which is always a key concern for anyone looking to buy or sell a company. There are a number of dynamics, including renewed confidence at corporate acquirers and unprecedented competition among PE firms, that have driven valuations for both buying groups to their highest-ever level.

Q: Why are you excited to attend this year’s HCTS?
A: I look forward to opening the aperture and including the broader tech market into our discussion of M&A. Understanding how the themes from HCTS figure into acquisition activity – and, more importantly, valuations – is something I’m looking forward to exploring while at the event.

Be sure to connect with Brenon at HCTS to discuss Tech M&A with him, and meet with all of our speakers, at the Bellagio in Las Vegas, September 24-26, 2018. Check out some of our previous Q&As with speakers to learn about all the upcoming topics including the previous Q&A with Aaron Sherrill.
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