While the outlook for overall M&A over the next 12 months is less robust than it is over the next three, the opposite is true for the technology, media and telecommunications (TMT) sector, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). (See related graphic).
The 12-month composite score of 63.7 for overall M&A is significantly lower than the three-month score of 70.5, a sign that the momentum of 2014 and the first half of 2015 may slow down soon. But sentiment about TMT is the reverse.
The 12-month TMT composite score of 85.3 is higher than the 79.9 three-month outlook. Among the six high-growth sectors featured in the MMP, the two considered most likely to withstand a downturn are health care and TMT, according to our survey participants.
The MMP is a forward-looking sentiment indicator derived from monthly surveys of approximately 250 executives published in partnership with McGladrey LLP. Previous sector forecasts include manufacturing, health care, energy, consumer goods and retail and financial services.
Various tech companies have been acquisition targets recently. Eaerlier in July, the Match Group, the owner of Match.com and Tinder, agreed to buy dating website PlentyOfFish. In May, Google Inc. (Nasdaq: GOOG), purchased Timeful, a scheduling application. Under Armour Inc., in February, bought applications MyFitnessPal and Endomondo for $560 million.