Transaction professionals expect middle-market M&A in the technology, media and telecommunications (TMT) sector to continue expanding in 2015, according to Mergers & Acquisitions' Mid-Market Pulse (MMP), a forward-looking sentiment indicator derived from monthly surveys of approximately 250 executives and published in partnership with McGladrey LLP. (See related charts.)
The 3-month score of 83.2 for TMT beat the score of 77.5 for overall M&A in the short term, and the 12-month score of 82.4 for TMT trumped the 72.7 score for overall M&A in the longer term. Expectations for the sector have been rising. In mid-2014, the sector yielded a 3-month composite score of 79.1 and a 12-month score of 79.5.
Among the six fast-growth industries measured by the MMP, TMT came in second place in the 3-month forecast, ahead of manufacturing, energy and consumer goods and retail but behind health care, and second in the 12-month view, behind the financial services, insurance, and real estate (FIRE) sector. Cloud computing, data analytics, mobile devices and e-commerce are among the underlying advancements fueling M&A in TMT.