Thoughts on TMT in 2016
As you may know, tech IPOs had one of their worst years in 2015, and there are murmurs of a bubble in private tech valuations, esp. at the higher valued companies (unicorn-level). At the same time, M&A was at an all-time high in 2015.
I will be joining a TMT boutique for SA, and have no idea what to make of these two data points. Can any current TMT bankers comment on how TMT M&A might be affected, and how this might impact return offers?
I'm curious as well
i think this is a valid concern as we potentially enter into a downcycle in tech, however, i'd think that the long term benefits of being in TMT (and specifically tech) outweigh any short term negatives.
of course, i don't have a crystal ball, so not sure if I'm correct, but as a summer analyst, I think you should be primarily focused on developing the right skill set, and less concerned with the near term industry trends (especially since TMT is usually one of the more "in demand" groups at banks where the group is relatively strong).
Good luck! Patrick
Don't know about tech, but at least the telco and media part of TMT should be quite fine from a banking perspective. There is real structural change across the industry and a lot of legacy players looking for ways to compete in the future. Because of that and the fact that telco is a real scale business, you get a lot of market consolidation and some really significant deals coming out of that.
Also, TMT is one industry where industry experience and knowledge is quite valuable since it's quite specific and at times hard for new people to pick up on. Just look at the success of e.g. LionTree as a specialized TMT advisor.
TLDR: Tech - no idea. Telco/media - good place to be if you're looking for deals because of consolidation (which is structural, not so related to market cycles).
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