Mergers and acquisitions are common in the tech world. These business deals only seem to make their way into mainstream consciousness when big name companies are involved — such as when Yahoo bought Tumblr, or Google acquired YouTube. But the truth is that companies partner and merge to achieve their goals every day.
Most people don’t pay attention to these deals because they’re boring, obscure, or don’t seem to affect the vast majority of people. That’s unfortunate. Here are four reasons why M&A professionals like Cary Kochman believe that everyone should stay up on tech mergers and acquisitions.
1. Because technology is everywhere.
Like it or not, technology surrounds us and permeates our everyday lives. We, as a society, rely on it in countless numbers of ways. In addition to understanding the technology itself, understanding who’s running the show and the business deals that shape the industry is an important part of being an informed citizen of the Western world.
2. Because they’re responsible for your online safety and security.
As more and more of the world’s business is conducted online, cybersecurity services have become increasingly sought-after, especially after the recent uptick in cyber attacks. Companies that have been hacked are seeking to patch up holes, and companies hoping to keep their consumers’ information safe have been turning to companies like Coalfire Systems Inc. Coalfire just partnered up with the Chertoff Group, a business strategy and M&A advisory firm.
Maybe you’ve never heard of those names, but you’ve probably heard of some of Coalfire’s clients. In fact, they have a list of over 1500 clients that includes big names like Amazon and IBM. Deals like this are helping companies like Coalfire to keep the information you provide to third party companies safe.
3. Because they have shaped the world we live in by making the technology we use possible.
Arguably the two biggest technological acquisitions took place within ten years of one another: Apple’s acquisition of Steve Jobs’ NeXT in 1996, and Google’s purchase of Android in 2005. Both acquisitions led to the development of the two most common smartphone platforms, revolutionizing cellular technology and essentially creating handheld mobile computing. It’s hard to imagine what the world would look like without iPhones, Androids, and tablets, but it’s safe to say that almost no one saw it coming. Except, that is, for the people who paid attention.
4. Because these deals are informing our future.
Technology is growing and developing faster than almost any other industry in the history of humankind. It’s likely that within the next twenty years, we’ll see it change just as much as, if not more than, it has in the past couple of decades. Dealmakers are starting to become drawn to robot and drone makers. Does this mean that artificial intelligence will one day become as prevalent as smartphones? Or will the next big thing be something that no science-fiction writer could have ever imagined? The only way to keep up with the change is to keep up with the news, and to keep up with the deals.