Dear Clients and Friends:
Our latest report on the M&A values among the 11 sectors of the FinTech, Data and Analytics world that we follow, and sometimes lead, is HERE. And it looks pretty good.
Recently, we have been asked by many if now is the best time to buy, sell or raise capital given the strong m&a market – and if it will last. Founders, CEOs, Board members, among others, point to the current combination of low interest rates (which may not last), low tax rates (which will not last), high liquidity among strategics and financial players, strong transaction values, and business optimism as the global pandemic subsides in the US and Europe as favorable conditions. It’s hard to argue the logic. These are heady times. We are busy. At the same time, we know that trying to buy, sell or raise capital before a firm is ready can have adverse consequences.
It’s true that we see strong demand and strong values for FinTech, Data and Analytic firms with unique capabilities and strong growth. If that’s you, then you are lucky. If not, don’t panic. Yes, taxes are on the rise. So be it. Liquidity and desire among buyers and investors remain high; economies are recovering at rates faster than most expected. Demand for technology-driven products and services shows no signs of slowing. Most experts note there is little risk of significantly higher interest rates soon. We see little reason for diminished appetite by buyers or investors for strong FinTech, Data and Analytic companies any time soon. The only things in short supply are good companies to invest in.
The best time to sell is when you have your act firmly together – when your present is strong – and your future is bright. The macro-environment helps, but it is not determinative. As you will see in our latest REPORT, many firms are transacting in this market. But not all. When you are ready, we will be here to help. A few of the more interesting recent transactions include:
- Thoma Bravo acquired Proofpoint for $12.3bn (Capital Markets Tech)
- Ekata announced it has been acquired by Mastercard for $850mm (Regulatory Tech)
- Sentenial entered into a binding agreement to be bought by EML Payments for $110mm (Payments Tech)
- Ascencus announced it entered into a definitive agreement to be acquired by Stone Point Capital and GIC for $3bn (InsurTech)
- ActiveCampaign raised $240mm in a Series C round of financing led by Tiger Global Management (Information Services)
- CoStar Group acquired Homes.com for $156mm (Real Estate Tech)
See more in our report. We live in interesting times.
Kind regards,
Ken
