Silverpeak and Ashurst recently co-hosted an insightful seminar on current market conditions in the technology M&A market, bringing together expert advisors and investors in the space.
Pietro Strada provided an update on fundraising and M&A trends in tech, whilst Chris Grey discussed key legal trends in tech M&A.
An engaging discussion concluded the evening with a practical dialogue on how founders and management teams can prepare for deal success, with a panel including Issam Abedin (Warburg Pincus), Pietro Strada, Jonathan Cohen, and moderated by Tallat Mahmood.
Our key takeaways are:
- The mantra for SaaS companies remains capital efficient growth as opposed to growth at all costs, and this is a leading driver for valuations across SaaS
- Valuations have reached a “new normal”, having stabilised since the highs from the pandemic, leading to a slight increase in deal activity
- A greater level of creativity is required to bridge valuation gaps through deal structuring including, vendor roll-over, deferred consideration, and / or risk sharing mechanisms
- A continued increase in Series C fundraisings and higher median deal values overshadows a lower level of Series B fundraisings in Q3; AI and fintech are key segments for fundraisings
- There is a greater prevalence of unpriced rounds in the market and an increased use of convertible debt
- Private equity investors continue to focus on backing the right management teams who can evidence the credibility of their business plan, and who are increasingly thinking about the eventual exit route; early alignment is key