TMT WEBINAR RECAP

Global M&A trends in the tech space

In the current dynamic tech landscape, understanding M&A is crucial for entrepreneurs looking to navigate growth opportunities. On 25 September, Oaklins hosted a webinar with industry experts that delved into the latest trends and prospects within the tech sector. If you were unable to attend, you can watch the recording here.

Led by Andrei Lepiavka, managing partner at Oaklins ZIMMA (Mexico), the session featured a panel of specialists:

John Farrugia, Principal at Oaklins Cavendish (United Kingdom)
Brad Adams, Managing Director at Oaklins TM Capital (USA)
Thomas Monteiro, Partner at Oaklins Olimpia (Brazil)
Joanna Stone Herman, Partner at Oaklins DeSilva+Phillips (USA)

Key topics included:

Current trends in Latin America: Discover the increasing appetite for this huge market that is tech-savvy, highly connected and home to a rapidly expanding digital infrastructure.

Importance of TMT in M&A: Learn why technology, media and telecoms is the largest sector in M&A and how it drives many other global deals.

What do buyers want? Consider the different value drivers for strategic and financial investors.

Tech M&A has really been resilient. There’s been a lot of uncertainty the past few years, but one of the reasons for the resilience is that strategics need to keep acquiring technology companies. The large strategics can’t possibly innovate fast enough to keep up with all the changes in technology. So they’re always going to have to buy some of that technology, and buy some of that innovation. JOANNA STONE HERMAN, TMT SPECIALIST, OAKLINS

Case study: Soundbite Learning

A focal point of the discussion was around the sale of Soundbite Learning, courtesy of co-founder Anthony Coxon, who shared his journey and experience of working with Oaklins Cavendish, offering firsthand insights into the advisory process.

Soundbite Learning was launched in 2006 to make audiovisual devices to help children learn in different ways. In the first few years, they raised funds then did a rights issue in 2009. Having originally considered a B2C model, the high costs involved led them to switch to B2B in 2010, an area where Anthony had experience.

Although designed as an exit business, the decision to sell Soundbite Learning was accelerated by the COVID-19 pandemic, which led to a surge in demand for online learning. This resulted in them moving their exit plans up by a couple of years, to leverage significant growth opportunities.

When it came to finding an advisor to support the sale process, Anthony noted that they didn’t just want to work with one focused on education. Rather, it was important for them to collaborate with an advisory company that had a wider reach.

He also pointed out that Oaklins Cavendish helped positively position and optimize Soundbite Learning for the sale, while asking the right questions to prepare the business for the process.

What’s more, as well as exploring the core business and revenue streams of Soundbite Learning, Oaklins Cavendish also identified areas of added value, such as additional product offerings and markets that they’d started to work in. And this proactive approach ultimately resulted in a higher final sale price.

When asked for advice for other entrepreneurs, Anthony emphasized the importance of involving advisors early on to help shape the business model and its finances and accounts, to make it easier to present them during a future sale process. Getting advisors involved sooner rather than later makes it much easier when it comes to actually selling the business. By that point, they will be familiar with the company, with the opportunities available to it and with the right buyers to approach.

This webinar reinforced Oaklins’ commitment to delivering value to tech companies, whether through M&A, debt advisory or other corporate finance services. In a competitive landscape marked by cross-border deals, the insights shared during the session are invaluable for entrepreneurs seeking to thrive in the evolving tech sector.