Asian tech M&A works to bridge management and cultural gaps

Author: Karry Lai | Published: 19 Jun 2019

Technology companies in Asia are increasingly becoming targets of M&A deals from private equity (PE) funds and strategics. Knowing what is important to both is important for technology companies looking to sell their stakes. In-house counsel also share tips on post-merger issues, such as bridging management gaps, in technology deals.

One question that technology companies considering a sale have, is who is on the other side of the table. "For PE funds, the top issues they consider are: how do we exit, which part of the cycle are we in and who are the potential buyers? For strategic players, what is really important to them are synergies with the company," said Marcia Ellis, partner and co-head of Asia private equity, Morrison & Foerster.

When the owners of a tech company are considering a 100% sale, they tend to be mainly concerned with price and will sell to the...