M&A in technology industry
M&A and alliances have become important for technology companies in the face of disruptive innovation. M&A activity in the tech industry hit record highs in 2020 as companies increasingly turned to dealmaking as a strategic means to fuel growth to cope with industry disruption. Corporate M&A and alliances have become the main means for technology companies to quickly acquire new technologies and business scale.
Key market issues
- Enhance business resilience amid global changes
- Establish flexible global supply chains
- Connect upstream and downstream to build total solutions
- Build multifaceted cooperation model to create an industrial ecosystem
- Corporate sustainability and ESG are becoming new industry issues
Enhance business resilience amid global changes
Due to global political and economic “black swans”, market volatility and technological changes are becoming the new norm. The technology industry is redefining key markets and strengthening operational resilience through resource consolidation and business concentration.
Establish flexible global supply chains
With the rise of protectionism, countries are looking to retain their advantages in key technologies. The technology industry is re-examining its business model and reshaping its supply chains with a "long chain" that focuses on hybrid global trade and a "short chain" that focuses on regional economies.
Connect upstream and downstream to build total solutions
Developing innovative technology is expensive. The technology industry is looking at how to integrate supply chains to consolidate its technological advantages, develop total solutions to connect with downstream brand customers, and establish business models to meet demand.
Build multifaceted cooperation model to create an industrial ecosystem
New applications are emerging. Cross-border, cross-domain "soft and hard, heterogeneous integration" is becoming a trend. Companies are building industrial ecosystems through equity and business cooperation to integrate talent and business resources from all aspects of the firm.
Corporate sustainability and ESG are becoming new industry issues
In addition to actively building their technological and manufacturing strengths, technology companies should integrate ESG issues, which are gaining international attention, and establish a system internally to achieve the goal of sustainable business operation.
Taiwan's technology industry is shifting from a competitive mindset to a cooperative one in order to build an ecosystem and participate at the international level. While international technology industry giants have established advantages in scale and resources through M&A, Taiwanese enterprises are relatively small with scattered supply chains, and they face the challenges of low demand for products in the domestic market, a relatively small capital market, and insufficient software talent resources. As a result, Taiwan's technology industry is gradually shifting from competition to cooperation. Through human resource integration, software and hardware technology alignment, reciprocal R&D investment, and product complementarity, companies are linking upstream, midstream, and downstream ecosystems to participate in international competition.
The challenges you face
You are looking for the perfect strategic partner to take your business to the next level in response to rapid global and technological changes in integration and competition
You are adjusting the global supply chain layout and need to dispose domestic and foreign investment companies or find domestic and foreign partners
You are looking for M&A targets or joint venture partners to create an ecosystem or to link upstream and downstream solutions to enhance the value of your company
You are seeking an appropriate exit timing or need to dispose of non-core businesses and assets due to corporate restructuring or strategic adjustments
You are looking to efficiently complete ongoing transactions with professional assistance
How PwC can help
PwC has long served the technology industry. Our financial advisors work with our audit, tax, legal and management consulting people to provide the highest quality professional services for accounting, merger and acquisition, legal and tax issues to maintain the competitiveness of your company.
With global resources, PwC’s Technology M&A team can help companies identify potential investment opportunities in the technology industry and complete strategies to achieve their goals.
We identify and evaluate appropriate M&A targets or joint venture arrangements, and work with our due diligence team to assess financial, legal, tax, operations, human resources, ESG, etc. We also help handle potential transaction risks, develop negotiation strategies and plan post-merger integration
Develop disposal strategies and feasibility assessments for non-core businesses or assets, and identify suitable counterparties to create maximum value from the disposal.
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