There has already been over $800B in acquisitions this year. An incredible amount of money and stock is changing hands, with price tags that will boggle your mind.
M&A has been changing. Huge deals are becoming the norm. If you thought a $5B valuation was big, that’s now just play money. We’re also seeing some notable deals emerge as incumbents reshape their entire DNA and startups go on buying sprees of their own to supersize themselves.
Here are some of the companies doing acquisitions to watch now
Google is not only the big dog on the block in search, but continues to prove it’s buying power.
Between the recent $1.1B acquisition of HTC’s design team, billions spent on offices in NYC, and new $2.6B purchase of analytics platform Looker, you’d think $1B was the new minimum price tag for anything to catch their eye.
From a startup’s perspective, Google is not only an active acquirer but a very desirable partner in an exit. Of all the founders with great exits that I’ve interviewed on the DealMakers Podcast, those that have sold to Google continually praise it for how fast, professional and organized they are. That can be just as valuable the price you are offered.
When getting acquired by a company like Google storytelling is critical for a transaction to happen and having a solid acquisition memorandum that captures the essence of the business is key. For a winning acquisition, memorandum template take a look at the one I recently covered (see it here) or unlock the acquisition memorandum template directly below.
Not the biggest deal of the year, but McDonald’s recent $300M acquisition of Dynamic Yield, followed by taking a 10% stake in Plexure is notable.
Their purchase of Dynamic Yield is the largest they’ve made in 20 years. The deep dive into app development, AI and machine learning show they’re serious about staying relevant and modern business.
Salesforce is a force to be reckoned with when it comes to acquisitions.
They’ve already been involved in at least eight deals since 2018. These include, CloudCraze, Mulesoft ($6.5B), MapAnything, Rebel Mail, and Griddable.
The most recent is the acquisition of data firm Tableau. A deal worth $15.3B.
IBM’s acquisition of Redhat is is a big deal for two reasons. One the size, at $34B. Secondly, the fact it paid a 63% premium. Still, IBM’s CEO seems excited at the deal, citing the huge opportunity that only 20% of enterprise-level workloads have moved to the cloud so far.
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