Hey, Canadian startups: 68% of American tech giants want to acquire you

Startups looking for an exit shouldn't underestimate how many large companies plan to acquire new companies, the results of a KPMG survey suggest.

When asked what the likelihood was of their company acquiring another within the next two years, 41% of American tech giant senior execs said it was "very likely" and 27% said it was "somewhat likely," with just 10% saying that they have "no plans" for acquisition activity.

What are these companies after? 69% are seeking access to new technology and products (hello, startups!) and 50% believe "product synergies" are improtant drivers of acquisitions and alliances. Also deemed key reasons were "access to employees with new skills and expertise" and "access to new geographic markets" (hello, Canada!). 

In terms of spending, R&D and new products or services got the most attention from the major U.S. technology companies interviewed, but a full 38% still said that they expect their companies to increase spending in "acquisition of a business" substantially over the next year.

What are some of the hot areas for driving revenue? If your startup is invovled in cloud computing, be excited. 65% of respondents believe that will be one of the top revenue drivers over the next three years. 45% felt mobile app development was also a key driver, and 43% believed the same about data analytics. Security and social media or "unified collaboration" tied for 4th with 20% each.

Toronto, Ontario, Canada

KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative (“KPMG International”). KPMG member firms around the world have 145,000 professionals, in 152 countries. The independent member firms of the KPMG network are affiliated with KPMG International, a... more

blog comments powered by Disqus

Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more

Who's Hiring

Recent Comments

Powered by Disqus