Presentation toNordic Venture Capital TourMay 11, 2012
Technology Investment BankingAt GrowthPoint Technology Partners, we’re invested in you.As former CEOs, executives, board m...
M&A and Advisory Experts for the Technology IndustryTechnology Advisory:!   M&A                   As former CEOs, executiv...
Recent Transactions                  Jan	  2012	                    Nov	  2011	                     Nov	  2011	           ...
Selected Earlier Transactions                    Dec	  2006	                        Oct	  2006	                           ...
GrowthPoint has done meaningful transactions with all themajor acquirers              Technical            Established    ...
Top Tens: Revenues, Acquisitions, Multiples                             7
Top Tech Acquirers – Multiples, # Deals, Market Capitalization                              8
EU-US: Total # of M&A Transactions                          EU companies                       acquired by US buyer       ...
EU-US: Total Reported Transaction Value ($Billions USD)                          US acquisitions                         o...
EU-US: Median Revenue Multiples in M&A Transactions                      Multiple paid by US                    buyer for ...
Nordic Countries-US: Total # of M&A Transactions                        105                     Nordic companies          ...
Nordic Countries-US: Total Reported Transaction Value ($Billions USD)                    $6.5bn                    Nordic ...
Cloud Computing Acquirer LandscapeSoftware as a ServiceInfrastructure as aServiceStorage as a ServiceDR as a ServiceFile S...
Digital Media Acquirer LandscapeMobile and MediaDevicesConsumer InternetWeb Communities &Social NetworkingDigital Media &E...
Bay Area - Fully-developed ecosystem    For startup formation,                                                            ...
M&A for early stage tech companies is unique & differentiated !  Non-Tech Company Valuations: PV analysis of future cash f...
How long does M&A really take?                   It depends…                            18
We guide you through the Acquisition ProcessOnce the decision has been made to launch the process, anticipate a 6 to 9 mon...
Europe produces strong technology companies!  Strong technology orientation   •  Often understated in explaining the value...
A sampling of issues we often see in “westbound” crossborder transactions!    Questions around internationalization      •...
Guidance at key decision points                                                                    Capitalize on optimal t...
Guidance at key Strategic inflection points along the company lifecycleRevenue                                            ...
Europe usa m&a, presentation to nordic v cs, may 11 2012
Upcoming SlideShare
Loading in …5
×

Europe usa m&a, presentation to nordic v cs, may 11 2012

1,935 views

Published on

GrowthPoint Technology Partners - presentation to Nordic venture capitalists on cross-border M&A trends.

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,935
On SlideShare
0
From Embeds
0
Number of Embeds
809
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Europe usa m&a, presentation to nordic v cs, may 11 2012

  1. 1. Presentation toNordic Venture Capital TourMay 11, 2012
  2. 2. Technology Investment BankingAt GrowthPoint Technology Partners, we’re invested in you.As former CEOs, executives, board members, investors and advisors, we know value when we see it. Our experiencealso gives us the perspective to look at every transaction from both sides of the term sheet. So our M&A, fundraising,and strategic advisory services all have just one goal in mind: Your success. London   Palo  Alto   Tel  Aviv   2
  3. 3. M&A and Advisory Experts for the Technology IndustryTechnology Advisory:!   M&A As former CEOs, executives, board members,!   Fundraising investors and advisors, we bring a wealth of strategic and financial experience to our clients!   Strategic advisory!   Software & Digital Media !   Information technology!   Mobile / App technologies !   Energy technologies 3
  4. 4. Recent Transactions Jan  2012   Nov  2011   Nov  2011   Nov  2011   Oct  2011   Aug  2011   Jul  2011   private     private     private     selected  assets   placement     acquired  by   placement     placement     acquired  by   acquired  by   acquired  by     Jul  2011   Jul  2011   Jun  2011   Jan  2011   Dec  2010   Nov  2010   Oct  2010   private   acquired  by   placement   acquired  by   acquired  by   acquired  by   acquired  by   acquired  by   Jun  2010   Mar  2010   Mar  2010   Dec  2009   Jan  2009   Oct  2008   Aug  2008   HyperSpace,   HyperCore  &   Radar  Networks   acquired  by   acquired  by   acquired  by   acquired  by   acquired  by  Phoenix  Flip  assets   acquired  by     acquired  by       Sensormati                   c a  division  of             tyco   Jul  2008   Mar  2008   Feb  2008   Aug  2007   July  2007   July  2007   April  2007       Investment  by   acquired  by   Sold  Data     Intel  Capital,   Converter     acquired  by   acquired  by       Steelpoint  Capital   acquired  by   acquired  by   IP  Business  Unit           Partners  Ridgewood   to         Capital     $22,000,0000     4
  5. 5. Selected Earlier Transactions Dec  2006   Oct  2006   Sept  2006   Jul  2006   Jun  2006   Dec  2005   Jul  2005   The power of embedded systems       Private  Placement    Private  Placement     with  Benchmark   acquired  by     Investment  by   with  DFJ     acquired  by   acquired  by       Capital   VantagePoint,     acquired  by   E-­‐Planet  Tudor         Draper  Fisher    Investment  Corp.     Baytech  Venture         Jurvetson,  JP  Morgan,   £10,000,000   Capital   Private  Investors   $10,000,000   $40,000,000   Jul  2005   Jun  2005   Apr  2005   Feb  2005   Jan  2005   Dec  2004   Dec  2004   acquired  by   acquired  by   acquired  by   merger  with   acquired  by   acquired  by   acquired  by   Dec  2004   Nov  2004   Nov  2004   Nov  2004   Oct  2004   Oct  2004   Oct  2004   Rhetorical   Stream   Systems,   $9,200,000     Theory,  Inc.   Inc.   Series  B       Has  sold  substanUally     acquired  by   acquired  by   ConverUble   all  assets  to   acquired  by   acquired  by     acquired  by         Preferred  Stock                       Sep  2004   Aug  2004   Aug  2004   Aug  2004   Aug  2004   Jul  2004   Jul  2004   Installshield   So[ware   has  sold  selected     sold  its  voIP  and     has  sold  its  NanoPro   CorporaUon   assets  to   sold  its  VPN     Broadbend  router  assets   Division  to       acquired  by   assets  to     to   $29,800,000       acquired  by             Series  C               ConverUble           Preferred  Stock     5  
  6. 6. GrowthPoint has done meaningful transactions with all themajor acquirers Technical Established Knowledge Relationships Deal Personalized Execution Attention Experience 6
  7. 7. Top Tens: Revenues, Acquisitions, Multiples 7
  8. 8. Top Tech Acquirers – Multiples, # Deals, Market Capitalization 8
  9. 9. EU-US: Total # of M&A Transactions EU companies acquired by US buyer 968 7,417 5,548 EU companies US companies acquired by EU buyeracquired by US buyer 602 US companies acquired by EU buyer Technology M&A, 2007-2011, CapIQ, GrowthPoint 9
  10. 10. EU-US: Total Reported Transaction Value ($Billions USD) US acquisitions of EU companies $50bn$330bn $83bn EU acquisitionsUS acquisitions of of EU companies US companies $35bn EU acquisitions of US companies Technology M&A, 2007-2011, CapIQ, GrowthPoint 10
  11. 11. EU-US: Median Revenue Multiples in M&A Transactions Multiple paid by US buyer for EU companies 1.5X 1.7X 1.2X Multiple paid by EUMultiple paid by buyer for EU companiesUS buyer for US companies 2.0X Multiple paid by EU buyer for US companies Technology M&A, 2007-2011, CapIQ, GrowthPoint 11
  12. 12. Nordic Countries-US: Total # of M&A Transactions 105 Nordic companies acquired by US buyers 832 Nordic companies acquired by Nordic buyers 164 Nordic companies acquired by EU buyersTechnology M&A, 2007-2011, CapIQ, GrowthPoint 12
  13. 13. Nordic Countries-US: Total Reported Transaction Value ($Billions USD) $6.5bn Nordic companies $6.2bn acquired by US buyers Nordic companies acquired by Nordic buyers $7.1bn Nordic companies acquired by EU buyers Technology M&A, 2007-2011, CapIQ, GrowthPoint 13
  14. 14. Cloud Computing Acquirer LandscapeSoftware as a ServiceInfrastructure as aServiceStorage as a ServiceDR as a ServiceFile Sharing as aServicePlatform as a ServiceIntegration as aServiceCloud ManagementCloud ServicesSecurity as a Service 14
  15. 15. Digital Media Acquirer LandscapeMobile and MediaDevicesConsumer InternetWeb Communities &Social NetworkingDigital Media &EntertainmentContent Programming& PublishingContent Management& CollaborationContent Delivery &Networking SolutionsOperator Solutions /InfrastructureTelecommunications 15
  16. 16. Bay Area - Fully-developed ecosystem For startup formation, Technology growth, and Investment Banks exit Venture Debt Private Equity Firms Part-Time C-Level Service Providers Wealth Outsourced Management Operations & Services Firms Advisory Board Members Headhunters Patent Attorneys Public Relations Accountants Groups Corporate Attorneys Venture Capitalists Networking EventsXerox PARC Seminars Angel Investors Universities(Office of Technology & Licensing) Ideas Company Series “A” Growth Exit Formation Round 16
  17. 17. M&A for early stage tech companies is unique & differentiated !  Non-Tech Company Valuations: PV analysis of future cash flows Project Future Cash Flows Apply Multiple Discount To The Present Value Strategic Fit Growth !  Technology Companies: Story Geography Valuation derived from more complex Talent Viral distillation of many factors IP buzz / traction Synergies Positioning Multiples 17 Valuation
  18. 18. How long does M&A really take? It depends… 18
  19. 19. We guide you through the Acquisition ProcessOnce the decision has been made to launch the process, anticipate a 6 to 9 month timetable Months 1-2 Months 2 to X Months X to X+2 Phase I Process Preparation Prospect Analysis Prepare Materials Phase II Contact Strategic Partners Refine Positioning Partner Analysis Site Visits/Follow-on Meetings Preliminary Due Diligence Phase III Negotiations Term Sheet Pre-Definitive Due Diligence Documentation/Definitive Agreement Closing GrowthPoint Driven Collaborative 19
  20. 20. Europe produces strong technology companies!  Strong technology orientation •  Often understated in explaining the value of their technology when compared to US companies •  This understatement gets worse as one travels north!  Excellent engineering teams •  Generally more people and better experience when compared to US!  Often need support with trans-Atlantic marketing, relationship-building, and competitive positioning 20
  21. 21. A sampling of issues we often see in “westbound” crossborder transactions!  Questions around internationalization •  Proving that solution extends across borders, scalability / relevant accounts •  Physical presence in the US!  Cultural Divides that can make relationship-building difficult •  “Cowboy” mentality of US buyers can be off-putting to EU sellers!  Strengthened “marketing” orientation needed •  Incorporate a balanced PR campaign as part of company strategy •  Analyst awareness needs to be key component of getting “known” to the acquirers •  Visibility at key partnering shows – ie. Oracle World, Dreamforce, etc.!  Balance sheet strength is key •  Need enough runway to work an effective process!  Intellectual Property can be a prime driver behind transactions •  There is a growing Importance of Patents & IP in technology M&A •  Titans are paying more attention to IP: Motorola & Google, Apple & Samsung, Oracle & Google, FB & Yahoo. •  Patents have become “a currency for technology…a bargaining chip in negotiations with venture capitalists…and potential buyers…they’re seen as value that can live beyond the life of an actual company.” Washington Post, May 4, 2012 21
  22. 22. Guidance at key decision points Capitalize on optimal timing and the value you have M&A  Leverage partner’s created. Deliver a return todistribution and sales shareholders, eliminate riskchannels, while creating Partner  the foundation for futureacquisitions Fundraise   Raise capital and remain independent. Right for many, but this is dilutive and achieving scale can be risky GrowthPoint has the knowledge and experience to advise you at these critical junctures 22
  23. 23. Guidance at key Strategic inflection points along the company lifecycleRevenue Typically the best ROI Zone for tech companies that do not IPO Start-up Growth Maturation Decline Time!   Strategic positioning: to maximize shareholder value!   Optimal exit timing: high growth expectations & synergy with acquirers 23

×