As previously posted, Goldman Sachs released a 2010 Year in Review and 2011 Issues and Outlook summary. Below is a recap of Goldman’s predictions for 2011 in Tech.
- Growth Will Drive LBOs… – Goldman predicts a year of strong enterprise value. When coupled with an easier financing environment than in 2008-2010, Goldman predicts higher new issue volumes and more issuances in the M&A context.
- …And IPOs – Goldman also believes that the 2006-2008 wave of buyouts, when combined with a recovered IPO market, will result in companies seeking equity financing in public markets.
- Some Growth Companies Will Choose to Stay Private – Many growth-stage tech start-ups have raised private capital and may continue to delay going public. Goldman anticipates that valuation will be a key determinant for investors in the growth equity space.
- Opportunistic M&A Will Continue… – The combination of relatively cheap financing and cash on corporate balance sheets will mean that larger companies can and will find M&A opportunities.
- …Especially in Strategic Areas – Goldman expects M&A to be particularly strong in emerging markets (after the Euro Zone debt crisis passed) and in certain strategic sub-sectors like SaaS.
- Apple Will Continue Its Market Expansion – Goldman expects Apple to expand its efforts in the TV content area by expanding and revamping Apple TV, creating an opportunity for apps.
- Some Tech Trends Will Have Staying Power… – Goldman expects that social networking and online targeted marketing will produce a “new cadre of Internet titans,” including Facebook, Twitter and Groupon. Will we party like it’s 1999? Goldman seems to think these titans are made of stronger stuff.
- …While Others Will Not – Goldman expects a hop from semi-formed 4G networks to plans for the 5G model by the end of 2011 at the latest.
This post was authored by Caitlin Vaughn.