Big Law firms are bullish on the resilience of the tech sector, despite a recent cooling of mergers and acquisitions work and multiple layoffs in the tech industry. And while capital markets work has slowed down this year, corporate partners at Silicon Valley law firms predict work will shift to M&A activity in the coming months. Aly Simons, co-chair of the Technology M&A practice at Goodwin, agreed that opportunities are on the horizon, in part because of a primarily venture-driven environment for tech. “Venture-backed companies at some point need to exit—by either going public or selling,” Simons said. “It’s part of their lifecycle. Unfortunately for some of them, in a tough economy, they may not get the valuations they want, but it can still be the right move for the company and its investors. Given lower valuations, we may see more exits.” Simons noted that the firm actually saw an increase in deal volume in the first half of 2022. Read the The American Lawyer article here.
In The Press July 15, 2022