In Q4 2023, the number of closed deals in the sector experienced a slight decrease of 5.6%, totaling 339 deals compared to 358 in Q3 2023. Despite this decline, the median multiple in the sector remained relatively consistent with the previous quarter. Notably, both median EV/EBITDA multiples and deal volume have largely reverted to and stagnated around pre-COVID levels over the last several quarters. There is speculation among analysts that deal volume might see a slight uptick in the upcoming quarters if the Federal Reserve opts to reduce interest rates.Heading into the new year, tech leaders must navigate the balance between global interconnectedness and self-sufficiency. The tech industry's expansive reach exposes it to the escalating risks stemming from geopolitical instability, supply chain disruptions, and regulatory shifts. To handle these challenges, leaders must diversify their supply chains and distribute operations across reliable regions.Generative AI presents a promising avenue for growth, with companies experimenting to enhance efficiency and productivity. However, amid the industry's excitement, providers must strategize which generative AI capabilities can be monetized and which models are cost efficient amongst rising chip demand.