Among the few exceptions to the dealmaking slowdown in much of 2020 was the technology sector, where deals proliferated throughout the rocky spring and summer seasons. In 2021, the momentum has continued, even as veteran market watchers draw a comparison between today’s environment and the dot.com bubble of the 1990s. But as record-setting valuations persist amid low interest rates and Covid-19 vaccine hopes, top industry advisers are beginning to debate whether or not they will have their foot firmly placed on the gas for much of the year.
Does the frothy tech M&A market have more room to grow or will the industry’s pace begin to sputter as Covid recovery plans are realized in 2021? Will virtual dealmaking continue even after much of the population is vaccinated? If so, does the tech industry have a natural advantage in operating in this environment? Finally, cross-border M&A boasted its highest volume and dollar amounts in several years in 2020. Does this trend continue in 2021, or was this a pandemic-fueled blip?