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Archive for: June 28, 2019

Jun 28, 2019

What Is a Business Worth? Our June Report on M&A in the FinTech, Enterprise Data and Analytics Industry

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Dear Clients and Friends, A buyer’s rationale on the price paid for a business isn’t always so obvious. In January, Fiserv acquired First Data Corporation for around $22 billion, 2x revenue; in March, Fidelity National bought WorldPay for around $43 billion, 10x revenue. In April, Deutsche Börse and General Atlantic teamed up to acquire Axioma for around 8x revenue. It’s clear that FinTech, data and analytics companies trade at widely divergent valuation multiples. And yet, we keep hearing bankers try to apply the multiples achieved by one company to estimate the value of another. Many factors impact value, but, for…

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