NEW YORK, July 12, 2021 /PRNewswire/ -- E-commerce businesses led the technology M&A market in the first half of 2021 and are expected to do so again in the second half, according to a new report by online M&A advisor FE International.
According to the report, the total number of e-commerce businesses available for acquisition increased 100% over the first half of 2020, while the total value of e-commerce businesses available increased 30.4%.
Additionally, the firm saw a significant increase in the number and value of third-party Amazon sellers up for acquisition. These sellers, known as "Fulfillment by Amazon" – or FBA – businesses made up only 40% of deals in the second half of 2020, but 75% of all deals in the first half of 2021.
The shift in consumer behavior also benefits other technology businesses. The firm saw a 47% increase in the total number of SaaS deals in the first half of 2021, compared to the same period in 2020, and SaaS multiples are coming in at 5X to 8X. Content businesses have also benefitted from the shift, as multiples have risen to 3X-4.5X.
"Now is a great time for technology business owners to consider selling, especially those in the e-commerce space," said Ismael Wrixen, executive chairman of FE International. "These businesses have seen significant gains in both value and in buyer competition in the first half of 2021. Due to an unprecedented combination of external factors, e-commerce business sellers are getting more money than ever in exits in 2021."
For more information on technology M&A marketplace trends and expectations, download the full 2021 Mid-Year Report.
About FE International, Inc.
FE International is an award-winning global M&A advisor of SaaS, e-commerce and content businesses. It has completed acquisitions for thousands of founders, owners and acquirers, and is the preeminent valuation thought leader in the industry. Its team includes experts in exit planning, valuation, accounting, legal and more.
Founded in 2010, FE is known for its extensive network of pre-qualified international investors. With headquarters in New York and regional offices in Miami, San Francisco and London, FE is an international company serving clients worldwide. It was named one of The Americas' Fastest Growing Companies in 2021 and 2020 by The Financial Times and is also a two-time Inc. 5000 company.
Lindsay Patterson
FE International, Inc.
(800) 403-9067
[email protected]
SOURCE FE International
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