9 Feb 2022
Software & Technology
SOFTWARE & SERVICES
Software and services are rapidly merging into a single sector as the market moves from traditional perpetual licencing models to cloud-based/SaaS subscriptions. Valuations for business with subscriptions are far higher than those operating a perpetual model, though fast-growing, early-stage businesses can struggle to fund this preferred route. We work with clients to help them secure funding, unlock this value and ultimately achieve higher valuations on exit. The security of systems and data is increasingly important, as is interoperability with other providers’ software to help reduce manual intervention and access consistent data for analysis.
DATA & ANALYTICS
With the exponential growth in data production, there is a burgeoning requirement by business and government for data analysis, data mining and data integration. This relies on the quality of data, generally sourced from a multitude of disparate systems and much of it heavily duplicated. Larger multinationals such as Google Analytics, Oracle, Microsoft, Amazon and Accenture, as well as specialised businesses with backing from private investors and private equity, are investing huge sums in this attractive market. As AI accelerates the ability to establish points of difference, it will enhance value. We can help you position your business to maximise your value creation and reach the most appropriate international buyers and investors.
MEDIA & TELECOMS
Digital convergence is now. Deals are about data, infrastructure or content production, management or ownership. Data is no longer merely transported but is manipulated. Although TV is still the go-to device for viewing, the rapid decline in standard ‘live’ TV watching practices and a growth in bespoke online provision across multiple devices, especially amongst the younger audiences. The investors and buyers of market participants are always looking for firms which disrupt and facilitate the integration of data and its sources with content. The new global giants are no longer manufacturing but data businesses. This trend will only accelerate and valuations will reflect this.
DIGITAL MEDIA & INTERNET
Digital Media and Internet businesses include technology-driven companies with both subscription and transaction-based business models across all on-line subsectors such as gaming, marketing, customer research, content and communications. We work with more traditional business transitioning, from traditional models with manual processes to a digital presence using automated processes, be that fundraising or exit planning.
Across all areas of e-commerce (B2B, B2C, B2A, C2C, C2B and C2A), online transactional trading is growing fast. Businesses that provide solutions to enable secure transactions, fund transfers, investment, education, tax returns or replicate just about any type of interaction you have in the physical world can attract very high valuations. Often traditional businesses have built a system to enable trading or scalable systemisation. These systems can become more valuable than the original business. We unlock this value by positioning the business correctly with respect to potential buyers and investors.
Consulting and professional services are becoming rapidly automated. The international practices are often investing more in AI and automation than anything else. Human capital and efficiency will be enhanced by the rapidly developing systems. Though the cost of developing such systems may be high, investment inappropriately targeted automation can generate genuine IP and scalability and will turbocharge valuations and enable exits.