Technology is not only the newest and fastest moving sector of the global market, but also the biggest, with Apple, Amazon, Alphabet, Microsoft and Tesla all exceeding trillion US Dollar valuations before the 1H2022 correction.
Transaction sizes range from thousands to hundreds of billions of dollars. Valuations, which are all predicated on growth assumptions, are highly subjective, particularly for start-up businesses.
Technology business drivers are very different from old world businesses and the window of opportunity to extract maximum value can be very short, given market cyclicality and potential for technological obsolescence.
The COVID-19 pandemic has materially accelerated the global path to digital transformation. Not only has the use of remote working tools progressed immeasurably, but the recognition amongst all businesses of the need to incorporate digital technology throughout their operations is near universal.
In addition, although there is consensus acceptance of the potential value of blockchain technology, the role and value of cryptocurrencies and NFTs remains highly volatile and subject to debate.
The 2022 market correction has hit the technology sector hard, with valuations falling after a 20-year bull run, and many companies now cutting jobs, merging or closing down.
Nonetheless, the critical role of new techologies and digital transformation across all areas of business remains paramount. Although investment capital may be more selective in the near term, we see this correction as a culling of start-ups with unproven plans for returns or profitability.
It is essential that emerging start-ups clearly communicate their value proposition to both the investment community and strategic buyers.
Large or small, you will always need an adviser who understands these drivers.
Examples of technology transactions we have led include:
- Advised Thorn Group on sale of Radio Rentals to Credit Corp
- Advised Thorn Group on response to on-market offer from Somers Limited
- Advised Potential(x) on its merger/sale to Beamtree Ltd
- Advised e3D Pharma on private capital raise
- Advised BCAL Diagnostics on IPO and ongoing stratgic options
- Advised Uprise on sale to IBH Population Health Solutions
- Advised BCAL Diagnostics on pre-IPO capital raise
- Advising fintech customer management platform on strategic options (current)
- Advising digital transformation platform development business on strategic options (current)
- Advised EFT NZ on sale to Potentia backed PC EFTPOS (Linkly)
- Advised Kyocera Document Solutions on its acquisition of Huon IT
- Advised Redback Technologies on two capital raisings from Energy Australia, CEFC and Right Click Capital
- Advised eWAY on sale to US-based Global Payments
- Advised Sportstec on sale to US-based Hudl
- Advised Enterprise Data Corporation on sale to Vocus Communications
- Advised Fiserv on sale of Fiserv Australia to Genpact
- Advised RELX on the sale of Cordell to CoreLogic
- Advised AFMA on externalisation of BBSW administration to ASX
- Advised UK bidder for AGL’s Active Stream smart meters
- Advised online food advertising business on sale options
- Advised funds management fintech start-up on capital raising
- Advised payment processing fintech start-up on capital raising
- Advised event management software business on capital raising
- Advised mobile advertising software platform on sale options
