MAJOR UPDATE from James & Daniel + Conor McKenna, Partner at LUMA, on the state of M&A markets and what to watch for heading into 2025
Sep 4, 2024
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Join Conor McKenna, Partner at LUMA Partners, as he dives into the dynamic world of M&A markets in adtech and martech. He reveals how the upcoming presidential election and economic factors are shaping M&A activities. Conor discusses the resurgence of strategic transactions post-pandemic and highlights the implications of Google’s antitrust trial on the industry. With insights on navigating the complexities introduced by major tech players and shifting regulations, this conversation is a must-listen for anyone in the sector.
The podcast reveals a significant acquisition by the hosts, who will transition to advisory roles at VeriShop, highlighting a pivotal shift in their journey.
Conor McKenna discusses a resurgence in M&A activity, driven by renewed buyer confidence and strategic focus on innovative capabilities in adtech and martech.
Deep dives
Celebrating a Major Acquisition
The podcast highlights a significant milestone as the hosts announce their acquisition by the VeriShop group, which focuses on developing innovative technology for retailers and merchants. The founders of VeriShop include seasoned professionals, such as Kate Kahn, a former senior vice president at Amazon, and Amron Khan, who played a crucial role in taking Alibaba public. This acquisition marks an exciting new chapter for the hosts, who will serve as advisors, helping to integrate their AI technology into VeriShop's offerings. The break taken to celebrate this event signifies the importance of this transition as they prepare to resume regular episodes.
M&A Market Recovery in 2024
The discussion transitions to the state of mergers and acquisitions (M&A) in the current year, emphasizing a notable resurgence compared to the previous two years. In 2022 and 2023, M&A activity reached historical lows, largely due to rising interest rates and economic uncertainty, which led companies to focus inward rather than pursue acquisitions. However, as 2024 progresses, there's been a marked increase in deal frequency within the advertising and marketing technology sectors, surpassing previous totals. This revival aligns with a more optimistic outlook, where confidence in M&A is gradually returning, setting the stage for strategic deal-making.
Shifting Buyer Sentiments and Confidence
Noteworthy changes in buyer confidence and behavior are observed as potential buyers become more specific in their M&A conversations. The shift from vague inquiries to direct discussions about strategic opportunities indicates a renewed sense of confidence among buyers. Interest in areas such as connected TV (CTV), commerce media, and data and identity technology reflects a growing focus on acquiring innovative capabilities rather than merely expanding existing business lines. This evolving landscape underscores the critical role that market confidence plays in shaping future acquisition activities and determining the nature of anticipated deals.
The Impact of Antitrust and Interest Rates
The podcast delves into the implications of antitrust concerns and fluctuating interest rates on the M&A landscape and corporate strategies. High-profile companies like Google face scrutiny that affects their ability to engage in acquisitions, which could catalyze new M&A opportunities in the market. The current environment suggests that lower interest rates might enable companies to pursue more aggressive M&A strategies, depending on a potential recession's severity. As organizations reassess their positions, the willingness to navigate regulatory challenges while seeking growth through strategic acquisitions becomes more pronounced, particularly in the technology sector.
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During the intro James and Daniel share a big update about Market AI and the reason for the short break between episodes.
After the intro, Conor McKenna, Partner at LUMA Partners, rejoins the podcast to share what he's seeing in the M&A markets across sectors within adtech and martech, and what's driving that activity. Conor discusses the impact of the upcoming presidential election, the economy, and the potential M&A implications of the Google antitrust trial.