Capstone Partners reports sector M&A activity persists despite a struggling real estate market

The real estate technology sector has witnessed strong demand as services providers have increasingly relied on sector participants’ technology offerings to drive new revenue opportunities, make data-driven decisions, bolster operational efficiency, and enhance customer experience, according to Capstone Partners, a middle market investment banking firm, in its September 2023 Real Estate Technology Market Update.

While a slight uptick in mergers and acquisitions (M&A) and fundraising activity has occurred in year-to-date 2023, dealmaking remains quiet and will likely remain so until 2024. Management teams and company shareholders largely have remained patient and cautious regarding deal participation, as they continue to refine business models and go-to-market strategies, recalibrate to a new valuation and financing environment, and reset M&A priorities. To date, deal activity has been spurred more by companies facing urgent capital demands