The exceedingly rare $1 billion exit

valuations 2
  • While there is much fanfare about billion dollar exits when they happen, they represent only 2.5% of all private tech company acquisitions.
  • 50% of Exits are Less than $50 Million.
  • Just 8 private companies were acquired for more than $1 billion in 2012 with 6 being US-based.

  • The Majority (76%) of tech companies acquired in 2012 had not raised institutional investment prior to acquisition.
  • Google and Facebook were the most active acquirers – the two tech behemoth acquired 12 private tech company¬†acquisitions between them in 2012.
  • Strategic buyers accounted for 94% of acquisitions.¬†Financial acquirers comprised a small 6% of deal volume.
  • On average, companies raised $25.4M and were acquired for an average of $172.0M.
  • There were 190 M&A transactions per month on average.

Sources:

Enterprise is Where the Exits Are: Only 16% of 2013’s Largest VC-backed Exits Have Been of Consumer Tech Companies.

https://www.cbinsights.com/reports/Private%20Tech%20Company%20M&A%20Report%20-%20CB%20Insights.pdf

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