 Fintech firms continue to add new product lines catering to gig economy workers and to expand their offering, both organically and through M&A. Banks and lenders are leveraging Lending as a Service to surface their products and services on platforms outside of traditional banking channels. Companies that started with B2B2C models for gig platforms are now targeting the entire gig economy. The launch of Payments as a Service has increased speed to market and resulted in greater competition. This client briefing note describes how the gig economy is driving the next wave of fintech.
Venero's July 2020 update for HR Tech M&A and fundraising activity, valuations and peer benchmarking. Review of job market activity by country, and earnings report excerpts from publicly listed Future of Work businesses.
Venero Capital Advisors is pleased to present the results of our first “State of HR Tech” survey. The findings provide invaluable and highly granular insights into how Future of Work (“FoW”) businesses are performing, as well as their near-term outlook. Companies can use this information to benchmark their own performance relative to peers, while investors and prospective acquirers can use it to assess investment and acquisition opportunities in the midst of significant business disruption and economic uncertainty.
Review of the June 2020 HR Tech M&A and fundraising activity, update on HR Tech valuations and peer benchmarking, job market activity by country, and key highlights from earnings reports other operational updates.
Review of the May 2020 HR Tech M&A and fundraising activity, update on HR Tech public market valuations and peer benchmarking, job market activity by country and key highlights from earnings reports and outlook statements by listed HR Tech companies.
This market update looks at the April 2020 HR Tech M&A and fundraising activity, presents the latest HR Tech public market valuations, reviews the impact of COVID-19 on the job market (new jobs posted by country in April vs. previous 12 months), and summarises 1Q 2020 earnings reports and updated outlook for selected Core HR, Payroll & Benefits firms, Learning & Development businesses, Talent Acquisition platforms and Recruitment firms (permanent as well as temporary).
In this April 2020 update, Venero provides an economic review of the potential macroeconomic shock, the impact it may have on HR Tech / Future of Work businesses, and the implications for fundraising and M&A.
Topics covered:
Much like in other industries, companies in the HR Tech space have seen a significant pullback in valuations compared to their February levels. This contraction in valuation multiples has impacted the HR Tech focused companies more than their diversified peers, with a 35% drop compared to 25% for Diversified HR Tech. HR Services, meanwhile, pulled back by 30% on average. 13 acquisitions were announced in March, in the US and Europe. This follows the transformational acquisition of Saba by Cornerstone, which is expected to trigger further consolidation in the space.
 We are delighted to present our 2019 analysis of M&A and investment trends in the HR Tech sector. This is the second year in a row we release such a report, after the overwhelmingly positive reception of the inaugural publication.
Similar to last year, in this report we share some of the insights and observations we have gathered from working with companies and investors in the Human Capital Management space over the last 12 months. We review the most prevalent M&A and investment themes, analyse notable transactions and highlight the factors that are likely to drive corporate finance activity for HR Tech businesses going forward. Below are the key takeaways. You can request the full report here. Client Briefing Note:Cybersecurity is a sector flush with fragmented technologies. M&A deal flow is underpinned by robust structural growth, transition to the Cloud, government regulations and sophisticated cyber breaches. In this context, small players with niche technologies are acquired by larger peers who need to expand their capabilities and scale their product offerings.
This briefing note looks at the main drivers of M&A activity in the cybersecurity space, reviews transaction volumes, the most active acquirers and trends such as vendor rationalization. It also explains the importance of an Advanced Security Operation Control as a driver for acquisitions and analyzes precedent transaction multiples and public trading valuations. |
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Venero Capital Advisors offers tailored and independent investment banking services to businesses operating in HR Tech and the Future of Work sector. Our client relationships are built and carefully maintained on trust, discretion and dedication. We combine in-depth industry expertise with market leading advisory skills – delivered within a highly confidential and unconflicted framework.
Venero Capital Advisors Ltd. is authorised and regulated by the Financial Conduct Authority (the "FCA"), appearing on the FCA register under firm reference number 795179. © Copyright 2021 Venero Capital Advisors Ltd. |