Global Practice Guides Web Summit: Tech M&A Trends and Expectations for 2023
In this web summit, held to mark the publication of the Chambers Technology M&A 2023 Global Practice Guide, George Casey, global managing partner of Shearman & Sterling, moderates a panel discussion featuring Ilya Tkachuk of Integrites, Don Suh of Kim & Chang and Harald Selzner of Noerr, which focuses on trends in technology mergers and acquisitions.
Harald Selzner discusses the aftermath of the pandemic in Germany, political conflicts, and economic challenges in Europe. He notes the continuing high market activity in the TMT sector despite overall market challenges, with the UK and Germany being the most active markets.
Don Suh observes that market trends in South Korea, and across the broader Asia-Pacific, reflect global patterns, with a robust start in 2020–2021 and a subsequent decline. There is a focus on the emergence of Korea as a tech hub and the diversification of its tech sector.
Ilya Tkachuk, discussing Ukraine, emphasises the resilience and growth of the IT sector in the country despite the war, with the ongoing adaptation of technology for military and civil defence purposes.
Challenges and Opportunites
The panel considers the financing challenges for start-ups and the shift in funding sources due to market conditions, the role of government initiatives and foreign investments in supporting the tech industry in various regions, including South Korea and Ukraine.
Harald Selzner notes the emphasis on innovation and funding in Germany, highlighting the necessity for technological advancements and the challenges in integrating new technology into established businesses.
Predictions for 2023
There is a broad consensus that M&A in the tech sector will pick up in 2023 for various reasons, including the need for cash and strategic defensive moves by companies. There is also discussion of the types of deals expected in different regions, given the current economic and geopolitical landscapes.