Operating at the Intersection of Technology and the Capital Markets
Tag: M&A
One of the most important elements when evaluating an M&A target is the target company's Product & Services portfolio. The ultimate Product question to be answered is: "Does it make more sense to build or acquire?" It is important for the acquiring company to answer a few key questions about the target company's product portfolio. … Continue reading Evaluating M&A Target Products & Services
We were critical of Adobe's (ADBE) acquisition of Figma for a few reasons. These elements can be applied to the analysis of any M&A transaction. Valuation: 50x revenue is a rich valuation no matter how you slice it. I don't care how unique Figma's product offerings may be or how competitive the deal may have … Continue reading Analyzing an M&A Transaction
Amazon (ticker: AMZN), has become more aggressive on the M&A front under new CEO Andy Jassy. We have seen this across the Entertainment, Health and Robotics sectors - each highly strategic in our view. Entertainment: Amazon recently closed its acquisition of MGM for $8.5 billion. The MGM acquisition onboards the James Bond franchise - a … Continue reading Amazon Ups Its M&A Effort
AWS, Azure and Google Cloud are poised to drive vertical M&A for years to come. By vertical M&A we refer to M&A transactions that would enable to AWS, Azure and Google Cloud to build a footprint at the application layer across various industry verticals. The obvious acquisition targets would be customers and partners of AWS, … Continue reading The Big 3 Cloud Giants Are Poised To Drive M&A
SS&C Technologies' (tkr: SSNC) preliminary approach about a potential offer for U.K.-based RPA ("Robotic Process Automation"), firm Blue Prism is detailed below. Read Blue Prism's deal press release HERE.SS&C's proposal values Blue Prism at approximately $1.6 billion. Blue Prism generated recurring revenue of approximately 154 million GBP in FY'20. Read Blue Prism's 1H 2021 investor … Continue reading RPA M&A: SS&C and Blue Prism
Tickers Mentioned: Roper Technologies (tkr: ROP); SS&C Technologies (tkr: SSNC); Verisk (tkr: VRSK) Private Equity has ramped its exposure to the Life Annuity Insurance industry over the past decade with PE-owned or PE-sponsored insurer's admitted assets growing from $67.4 billion in 2011 to $604.1 billion at year-end 2020 (per AM Best), a 9x increase. If … Continue reading Private Equity and Life Annuity Insurance
Tickers mentioned: Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Facebook (FB), Microsoft (MSFT) In May we wrote about Amazon potentially acquiring MGM. That deal was subsequently announced and will be reviewed by the FTC (per the WSJ) under new FTC Chair Lina Khan. We recently mentioned Ms. Khan as being tough on Big Tech. The FTC's … Continue reading Big Tech Firms Will Find It More Difficult To Execute M&A
Time is wasting away. If you are a big fan of a target company's management team, pay them the extra EBITDA multiple turn if that is what is required to execute your deal. I did not say "gift" them the incremental purchase consideration. Make the management earn it. Create a Management Incentive Plan ("MIP"), for … Continue reading Don’t Allow Pride To Scuttle Your M&A Transaction
We had a conversation with Ken Bisconti and Bob Petrocchi who together co-lead Intralinks, an SS&C Technologies (tkr: SSNC) company. Intralinks is perhaps best known for its Virtual Data Room offering - "VDRPro" - part of a larger product portfolio that customers primarily use to securely manage M&A and related transactions. We covered a variety … Continue reading TEK2day Podcast #419: Guests Ken Bisconti and Bob Petrocchi – Co-Heads SS&C Intralinks
An effective recipe for crowding out innovation consists of companies taking on massive amounts of leverage coupled with a Federal Government that has a negative bias toward mergers and acquisitions. We are experiencing this phenomenon now with corporate debt & loans at approximately 56% of GDP (as of Q2, chart below) and a DOJ that … Continue reading High Debt Levels and Negative M&A Bias Are Crowding Out Innovation
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