Louis Lehot’s Post

Private equity firms continue to see big potential in tech services, but their strategies are evolving. Facing valuation challenges and talent shortages, PE players are adopting more sophisticated approaches. These include platform-based growth, strategic consolidation through "string of pearls" acquisitions, and public-to-private transitions to nurture growth away from market pressures. These strategies reflect PE's adaptation to economic uncertainties and rapid tech changes. Firms are prioritizing long-term value creation, exploring niche players and emerging talent hubs, and focusing on digital transformation initiatives. The rise of Generative AI and consolidation in managed services are creating new opportunities, prompting PE to rethink their playbooks. Firms successfully executing these strategies may gain a significant competitive edge in the evolving tech services landscape. For deeper insights into these trends and their implications download out latest Private Equity in Tech Services Report here: https://bit.ly/4dFzC80 Sidhant Rastogi | Vimal MENON | Nikhil Bagde | Raunak Tripathi | Owen Babington | Supriya Srivastava #PrivateEquity #TechServices #GenAI #Investments

Founders often forget that there are exit strategies that exist for them in the mid-to-lower range of the M&A market. Especially in this consolidation era of tech, are we building our startups for these forms of exits? In the last 6 months, I advised (sell-side) on a number of deals below €20M in transaction size. More and more startups are being approached for an early acquisition. More interesting insights in this M&A report from Mckinsey. Here are some summary points: 📈 Resurgence incoming —from the pandemic-induced downturn to a record-breaking recovery and subsequent dip in 2023—the M&A market remains resilient. While global M&A activity saw a 16% decline in 2023, rebounding optimism is fueling expectations of a market resurgence. 🔍 M&A strategy favourable for shareholders - Factors driving market durability include shifts in the business landscape, heightened strategic importance of M&A, and the success of programmatic acquirers in delivering value. Notably, companies with more than two deals annually over ten years outperformed in shareholder returns, emphasizing the efficacy of a strategic M&A approach. 💰 M&A dry powder building up - Although private equity activity receded in 2023, a significant amount of undeployed capital signals potential reentry into the market. Furthermore, improving macroeconomic conditions and geopolitical stability bode well for future dealmaking. 🌐 How will alternative deal structures affect low-to-mid market? - Looking ahead, companies are advised to re-evaluate M&A strategies, adapt to geopolitical risks, and explore alternative deal structures to navigate the evolving landscape effectively. https://lnkd.in/eWHksYsp #mergersandacquisitions #BusinessStrategy #MarketTrends #exitstrategy #entrepreneurship

In an industry where innovation is paramount, the current state presents unique hurdles. Medtech’s total revenue hit $573 billion in 2022, yet growth dipped to 3.5%, signaling a departure from the robust 2021 performance. Is this a temporary setback, or does it signal a broader trend? As growth slowed, public valuations followed suit. Trading multiples saw a significant drop, emphasizing the need for strategic investments to reignite investor interest. The industry is currently trading at its lowest sentiment levels since the 2008 financial crisis, necessitating a thoughtful approach to regain momentum. While 2022 witnessed record cash returns to shareholders, a decline in R&D spending growth and a 44% fall in M&A expenditure pose challenges for sustained growth. How can the industry strike a balance between financial returns and strategic investments to foster long-term success? The financing landscape, initially boosted by pandemic-driven investments, is experiencing a shift. Venture financing for smaller medtechs dropped 21%, raising concerns about the industry's ability to support innovation. The almost-disappearance of the IPO market further adds to the financing challenges for emerging players. Amidst the hurdles, M&A in the sector also faces headwinds. Deal values are down 44%, with only significant acquisitions preventing a 10-year low. How will these challenges impact the industry’s capacity to drive innovation? #tpo #theprivateoffice #tpoadvisory #MedTechInsights #HealthcareIndustry #InnovationChallenges #MedTechInvestments #IndustryTrends #HealthTech #InvestorInterest

BMS's latest revelations shed light on key market insights and trends driving its M&A strategy. By staying attuned to evolving customer preferences, technological advancements, and regulatory changes, BMS aims to proactively identify opportunities for growth and innovation. Whether targeting niche markets, acquiring innovative startups, or pursuing strategic alliances, BMS's M&A approach is guided by a deep understanding of market dynamics and trends. Learn more here: https://bit.ly/3ITDapJ #InsuranceBusinessMag #BMS #MergersAndAcquisitionsMarket #MarketInsights

📢 Exciting Insights from the Boston Consulting Group (BCG) 2023 Q3 M&A Report! 🚀 As we navigate the ever-evolving M&A landscape, I'm thrilled to share some key takeaways from the late report from BCG, shedding light on opportunities and trends that resonate with EQUIT - M&A, especially in Sweden and the thriving IT and Green Tech sectors. 📈 Recovery in Full Swing: The report highlights a strong rebound in M&A activity, echoing our observations. The market is bouncing back after facing challenges earlier this year, presenting prime opportunities for strategic deals. 🌱 Green Tech's Time to Shine: Sustainability remains at the forefront of deal-making. The Green Tech sector is poised for growth, aligning perfectly with EQUIT M&A's commitment to driving sustainable innovation. This sector holds tremendous potential for both buyers and sellers looking to make an impact. 💼 IT Sector Resilience: Despite challenges, the IT sector has displayed remarkable resilience. Our specialization in this sector positions us well to guide businesses in Sweden and the Nordics, providing tailored solutions for those looking to navigate the tech landscape. 🌍 Local Expertise, Global Reach: EQUIT M&A takes pride in its regional focus on Sweden, ensuring we understand the nuances of the local market. Combined with insights and international connections, we offer a unique blend of local expertise and global reach. 🚀 Bold Moves Ahead: With the market rebounding and transformational deals on the horizon, now is the time for bold moves. Whether you're a tech business owner seeking the perfect exit or a tech enthusiast looking for strategic acquisitions, EQUIT M&A is here to collaborate with you. 📩 Connect with Us: Reach out to learn more about how we can partner with you in seizing the exciting opportunities outlined in the BCG 2023 Q3 M&A report. Your success in Sweden's dynamic IT and Green Tech sectors is our priority. Link to BCG Report: https://lnkd.in/exbqMh9J Let's embark on this exciting journey together! 🌟 #mergersandacquisitions #företagsförvärv #EQUIT #affärsrådgivning  #GreenTech #IT

🌱Let's turn our attention to roll-up strategies – a key PE trend that, simply put, keeps on rolling. The rise in add-on transactions is a profound trend and is expected to continue this year as PE firms seek to expand profit margins and revenue footprints of their portfolio companies. But what I really find fascinating is the renewed focus on sectors with plentiful fragmented businesses – a promising realm for value creation. Finally, a word on the tech and healthcare sectors. The former continues to diversify and disrupt, making it an attractive investment playground for PE firms. The latter, on the other hand, is ripe with opportunities for innovation and transformation, prime arenas for PE firms to employ their strategic expertise. 2024, in my view, is set to be a year of transformation and resilience. How do you see these opportunities? 🚀 #PEOutlook #ValueCreation #Transformation Nicolas Ploquin Benoit Martel Eduardo Díaz Uriarte

Wolfteam Ltd. forecast 5 months ago that we have hit the bottom of the mergers and acquisitions, capital markets, capital raising slump in Europe. The latest Q32023 data from Refiniv and Crunchbase confirm the validity of that prognosis. The slump in Eastern Europe was not that deep even. Deal making is set to return, including the region of Central and Eastern Europe. Do contact Wolfteam Ltd. for deals, mergers and acquisitions, capital raising in the region of Central and Eastern Europe! #mergersandacquisitions #capitalmarkets #capitalraising #investing #cee #startups #vc

Despite an IPO Rebound, Firms Will Still Turn to Private Markets  Despite IPO optimism and a public market rebound on the horizon, the attractiveness of private markets continues to grow exponentially. Myles Milston, co-founder and CEO of Globacap, explains why firms will still choose to stay - or even go - private for longer. #ipos #privatemarkets #tech #publicmarkets #secondarymarkets #liquidity https://lnkd.in/drzzXgHH

Smaller deals and private equity are making a big impact, helping companies grow and adapt, especially in AI and sustainability. Learn why the tech sector is leading in M&A innovation with insights from LBMC's Brian Marynowitz. Stay ahead in the game! #TechGrowth #MergersAndAcquisitions #PrivateEquity #LBMC