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?

Comments (4)

 
Feb 26, 2016 - 12:59pm

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

 
Feb 27, 2016 - 6:15am

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).

Start Discussion

Popular Content See all

This Fucking Sucks
+50OFFby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Why would any associate+ banker choose a BB over EB?
+39IBby Intern in Investment Banking - Mergers and Acquisitions">Intern in IB-M&A
You Did it Citi
+34OFFby 2nd Year Analyst in Investment Banking - Industry/Coverage">Analyst 2 in IB - Ind
Share a day that looked like a Suits/Billions episode
+31IBby Intern in Investment Banking - Generalist">Intern in IB - Gen
PE isn’t the best way to get into b-school
+28BSCHby 2nd Year Associate in Private Equity - LBOs">Associate 2 in PE - LBOs
Evercore Target Schools?
+22BSCHby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
What's Wrong with Warburg Industrial & Business Services?
+17PEby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A

Total Avg Compensation

February 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (31) $349
  • Associates (160) $231
  • 2nd Year Analyst (97) $151
  • Intern/Summer Associate (92) $144
  • 3rd+ Year Analyst (23) $145
  • 1st Year Analyst (369) $131
  • Intern/Summer Analyst (304) $82

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.5
2
Jamoldo's picture
Jamoldo
98.4
3
Secyh62's picture
Secyh62
98.3
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
frgna's picture
frgna
97.6
7
Addinator's picture
Addinator
97.6
8
bolo up's picture
bolo up
97.5
9
NuckFuts's picture
NuckFuts
97.5
10
Edifice's picture
Edifice
97.5