Goldman Sachs Year in Review – Predictions for 2011

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.

  1. 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.
  2. …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.
  3. 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.
  4. 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.
  5. …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.
  6. 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.
  7. 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.
  8. …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.

 
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