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Small technology companies are very much in growth mode this year, so expect more business combinations among
them. That's the word from PricewaterhouseCoopers' Technology Barometer survey of high-growth small businesses.
PWC says 59% of respondents expect to form a new strategic alliance this year. New joint ventures were
planned by 48% of small tech companies, up from 41% last year. As for actually going out and buying a business,
38% say they'll do it this year, vs. 31% a year ago. The buyers should have plenty to choose from, since fully a
quarter of small technology companies are contemplating selling all or part of their businesses, up from 20%
last year.
What's behind the surge? Probably the increase in margins that technology companies saw last year -- 38% of
the small tech company CEOs surveyed said their margins improved. In that kind of environment, it almost doesn't
make sense not to expand.
By
Margaret Popper
in New York
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