nordic m&a and private equity forum 2019...nordic m&a and private equity forum –march 2019...

Nordic M&A and Private Equity Forum – March 2019 1

Nordic M&A and Private Equity Forum 2019Tech valuations: the only way is up?


”What Goes Up, Must Come Down”-Sir Isaac Newton

Nordic M&A and Private Equity Forum – March 2019 3 3Nordic M&A and Private Equity Forum – March 2019

Hampleton introduction

Global tech M&A

Nordic M&A overview

Agenda

Boom, bubble or bust?

Sector snapshots

Q&A Session


Introductions

Introductions

Miro ParizekPrincipal Partner

[email protected]

Anton RøtheAssociate

[email protected]

Michel AnninkRegional Director

[email protected]

mailto:[email protected]




About Hampleton Partners

Hampleton offers experienced deal-making across a select number of technology sectors.

Hampleton overview

100+ Tech transactions executed by team members

21 Seasoned professionals headquartered in London and Frankfurt

Satellite office in San Francisco to engage with US buyers

8 Core focus areas in which the team has operational, banking and investing experience

62% Percent cross-border transactions on sell-side engagements

Privately-owned companies

Entrepreneur-led businesses

Private equity portfolio companies

VC-backed companies

Selected buy-side engagements

Selected start-ups

…in key geographies worldwide.M&A and corporate finance advisory for


Focus areas

The experienced Hampleton team focuses on eight distinct subsectors of the technology industry.

Hampleton overview

Automotive Tech

Fintech Healthtech High-Tech Industrials IT Services

Enterprise Software & SaaSE-CommerceDigital Marketing

Nordic M&A and Private Equity Forum – March 2019 7 7Nordic M&A and Private Equity Forum – March 2019


Global tech M&A

Nordic M&A overview

Agenda


Sector snapshots

Q&A Session


1998: Seven of top 10 largest companies globally are non-tech companies

Global tech M&A

#1

2003

2008

2013

2018

#2 #3 #4 #5 #6 #7 #8 #9 #10

1998


2018: Seven of top 10 largest companies globally are tech companies

Global tech M&A

#1

2003

2008

2013

2018

#2 #3 #4 #5 #6 #7 #8 #9 #10

1998


Global M&A activity

Global technology M&A activity has historically followed closely the NASDAQ Index

Global tech M&A

-

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

OM

X /

OSE

BX

NA

SDA

Q

NASDAQ, OMX, OSEBX composite indices 2004-present

NASDAQ OMX OSEBX


$219b $350b $406b $405b $248b $144b $180b $233b $192b $247b $391b $575b $457b $344b $580b

2 078

3 033

3 995 3 632

3 008 3 023 3 290

3 786 3 651 3 303

3 978 4 429

4 065 3 558 3 648

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

$0b

$100b

$200b

$300b

$400b

$500b

$600b

$700b

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Global tech M&A deals 2004-2018

Aggregate Disclosed Value Transaction Volume

Global M&A activity

Global technology M&A activity has historically followed closely the NASDAQ Index

Global tech M&A

NASDAQ


Europe has the fastest growing VC market

Global tech VC

398 Deals (2018)

€2b

€3b

€2b

€3b

2015 2016 2017 2018

€59b€69b €76b

€93b

2015 2016 2017 2018

6,676 Deals (2018)

€9b €8b

€14b€16b

2015 2016 2017 2018

2,601 Deals (2018)

€2b

€1b €1b

€3b

2015 2016 2017 2018

209 Deals (2018)

€45b€38b €41b

€51b

2015 2016 2017 2018

5,640 Deals (2018)


Funding rounds are growing in size

Global tech VC

€0,4m €0,4m €0,5m €0,8m€2,2m €2,7m €3,1m €3,4m

€6,2m€5,4m

€7,9m

€9,6m

€15,2m

€13,2m

€17,9m

€24,6m

€0,0m

€5,0m

€10,0m

€15,0m

€20,0m

€25,0m

€30,0m

2015 2016 2017 2018

Early Stage / Seed Series A Series B Series C+

Median equity raised Pre-money valuationsEquity raised

Normal range of equity raised in round

€10m - €100m

€5m - €25m

€1m - €12m

€100k - €2m

€100m - €1b+

€50m - €500m

€8m - €50m

€2m - €8m

Normal valuation range in round

Nordic M&A and Private Equity Forum – March 2019 1414Nordic M&A and Private Equity Forum – March 2019


Global tech M&A

Nordic M&A overview

Agenda


Sector snapshots

Q&A Session


Nordic tech M&A activity

Nordic tech M&A

$5,8b $1,4b $10,0b $11,5b $8,7b $12,1b $9,2b $20,3b

112 114

91

113

125118

138132

0

20

40

60

80

100

120

140

160

$0b

$5b

$10b

$15b

$20b

$25b

2011 2012 2013 2014 2015 2016 2017 2018

Nordic tech M&A activity 2011 - present

Disclosed Value Transaction Volume


1 480

573

401

270 211

151 134 132 111 108 95 92

245

-

200

400

600

800

1 000

1 200

1 400

1 600 Tech transaction Volume Western Europe: 2015 - 2018

Nordics are the 3rd largest tech M&A market in Europe

Nordic tech M&A

Total Nordics deals – 512 -> Top 3



Global tech M&A

Nordic M&A overview

Agenda


Sector snapshots

Q&A Session


Hampleton M&A research - 2019 H1 reports out now

Our research yields valuable insights, such as M&A transaction multiples, exit strategy and timing, potential buyers, as well as current and future technology trends.

Sector snapshots


1,3x 1,4x2,1x 2,1x 2,1x

3,1x2,1x 2,0x

4,7x

1,7x

8,2x

9,6x 9,6x 9,6x

11,0x11,2x

13,4x 13,4x

15,5x 15,5x

-

10

20

30

40

50

60

70

1H2014

2H2014

1H2015

2H2015

1H2016

2H2016

1H2017

2H2017

1H2018

2H2018

Transaction Volume

Trailing 30 Month Median EV/S

Trailing 30 Month Median EV/EBITDA

Sector snapshots

Automotive Tech – It’s all about new mobility

has acquired

US$ 141 m2.9x EV/S

has acquired

undisclosed

has acquired

undisclosed

Autotech valuations


2,8x 2,9x 3,2x 3,3x 3,3x 3,3x 3,3x 3,5x 3,7x

14,1x 14,4x 14,4x 14,5x 14,4x 14,5x15,5x

16,7x 16,7x

-

100

200

300

400

500

600

700

2H2014

1H2015

2H2015

1H2016

2H2016

1H2017

2H2017

1H2018

2H2018

Transaction Volume



Sector snapshots

Enterprise Software – Paying anything for ‘aaS’

has acquired

US$ 6.6 b21.9x EV/S

has acquired

US$ 33.4 b10.8x EV/S - 57x EV/EBITDA

has acquired

US$ 1.16 b8.9x EV/S – 29x EV/EBITDA

Enterprise Software valuations

Nordic M&A and Private Equity Forum – March 2019 21Sector snapshots

Fintech – Capitalising on the payment revolution

Ongoing bid

Ongoing bidNOK 6.8 b

6.3x EV/S - 13.5x EV/EBITDA

has acquired

US$ 21.3 b4.7x EV/S – 12.5x EV/EBITDA

has acquired

US$ 2.2 b19x EV/S

Fintech valuations

2,8x2,3x 2,6x 2,8x 2,3x 2,2x 2,3x 2,5x 2,9x 3,0x

11,4x

13,8x14,6x14,5x14,3x14,0x14,3x

15,0x15,0x15,3x

-

50

100

150

200

250

1H2014

2H2014

1H2015

2H2015

1H2016

2H2016

1H2017

2H2017

1H2018

2H2018

Transaction Volume





Global tech M&A

Nordic M&A overview

Agenda


Sector snapshots

Q&A Session


-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

$0b

$100b

$200b

$300b

$400b

$500b

$600b

$700b

Aggregate Disclosed Value Transaction Volume


Summary

NASDAQ

Global tech M&A deals 2004-2018 Private equity tech M&A

$48b $72b $57b $109b

270344

403498

$0 b

$20 b

$40 b

$60 b

$80 b

$100 b

$120 b

2015 2016 2017 2018

Transaction Value Transaction Volume

Global VC fundraising

$131b $134b $150b $187b

10 972 11 01911 326

12 524

$0b

$50b

$100b

$150b

$200b

2015 2016 2017 2018

Transaction Value Transaction Volume



Summary

• Longest bull market in history

• Market and macro economic developments are threatening the bull market

• Nordics an exception?

• Tech M&A market is set to stay strong



Global tech M&A

Nordic M&A overview

Agenda


Sector snapshots

Q&A Session


Q&A

Summary


Contact details

Contact details

London - HQFourth Floor17 Woodstock StreetLondon, W1C 2AJTelephone: + 44 20 3728 6910

Hampleton office locations:

FrankfurtTaunusanlage 1D-60329 FrankfurtTelephone: +49 5050 60 713

San Francisco1390 Market St. #200San Francisco, CA 94102Telephone: +1 415 715 4522

Miro Parizek

Principal Partner+49 172 8222622

[email protected]

Michel Annink

Regional Director+46 (0)73 997 8993

[email protected]

Anton Røthe

Associate+44 7490 195842

[email protected]

nordic m&a and private equity forum 2019...nordic m&a and private equity forum –march 2019...

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