Software and SaaS valuations: When quality matters more than ever
PARIS | LONDON | February 15th, 2023
Bryan, Garnier & Co’s software research team is pleased to release Software and SaaS valuations: When quality matters more than ever – an in-depth analysis of the recent correction in SaaS valuations and its impact on software and SaaS M&A transactions, IPOs and private fundings.
SaaS valuations have corrected beyond the necessary. In the US, listed SaaS players now incur a discount on sales multiples versus the broader software sector. This comes despite continued healthy revenue growth rates and the general resilience of the subscription model in economic downturns. On the other hand, 2022 was a record year in terms of Software M&A. While bear stock markets have made strategic acquirers more cautious in their M&A ambitions, the number of deals initiated by private equity funds has surged, and M&A multiples paid have not seen the same correction as those of listed players. Finally, the rare recent SaaS IPOs have not obtained the valuation they deserved, making it more difficult for private equity and venture capital funds to IPO their SaaS holdings, and funds raised by unlisted SaaS vendors have plummeted in value. However, if fundings above USD200m have disappeared, the market for fundings below USD200m on SaaS companies is recovering.
Bryan Garnier’s latest white paper reviews the valuation opportunities in the software sector, as well as challenges for software vendors migrating to SaaS and subscriptions. Read this report to learn about the key trends that will shape the software market, and understand why we consider the currently low valuation multiples in the software industry provide further opportunities for M&A and fundings. Contact your Bryan Garnier representative if you would like to speak to the author, Gregory Ramirez.
A vibrant market for M&A : Engineering and R&D Services
PARIS | LONDON | February 14th, 2023
Bryan, Garnier & Co technology equity research team is pleased to release A vibrant market for M&A: Engineering and R&D Services Update which takes a deep dive in market drivers, valuation issues and M&A in the Engineering and R&D Services industry.
Though the economic slowdown is here, the Engineering and R&D Services market has solid demand drivers in all industries thanks to structural changes pushing organisations to accelerate innovation: Industry 4.0, the will to reduce dependence on certain countries or certain suppliers, the implementation of sovereignty programmes, and the impact of environmental policies. Valuation multiples for listed Engineering and R&D Services firms look to have reached a trough, and players in this market have never been so cheap since 2019 and 2015-2016. In parallel, there is a vibrant market for M&A and private equity investment: the consolidation game is ongoing, and an increasing number of private and PE-backed Engineering and R&D Services firms are building up through acquisitions.
Bryan Garnier’s latest white paper reviews the business opportunities in the Engineering and R&D Services sector, as well as challenges for the industry. Read this report to learn about the key trends that will shape the Engineering and R&D services market, and understand why we consider the currently low valuation multiples in the Engineering and R&D Services industry provide further opportunities for M&A. Contact your Bryan Garnier representative if you would like to speak to the author, Gregory Ramirez.
Bryan Garnier Announces Pierre-Georges Roy as a Partner in Its Investment Banking Team
Pierre-Georges Roy
Investment Banking
NEW YORK, LONDON AND PARIS, 8 February 2023 –
Bryan, Garnier & Co, the leading investment bank for high growth Tech and Healthcare companies has announced that Pierre-Georges Roy has joined as a Partner in its US investment banking team.
Based out of New York since 1997, Pierre-Georges (“PG”) brings to the role more than two decades of experience advising on M&A and late-stage fundraising transactions for both US and European fast-growing Tech & Healthcare companies. He will contribute his extensive coverage of U.S. strategic and financial investors to the firm and will help enable a world-class, global investment banking team that has delivered over 300 transactions successfully for clients on both sides of the Atlantic since 2020.
Prior to Bryan Garnier, PG was a Partner for 17 years at M&A advisory firm Results International, sector specialist covering Tech & Healthcare companies. Prior to Results, PG led an investment team at New York hedge fund The Zanett Group, making buy-out investments in US tech firms. PG is a law graduate from McGill University in Canada.
Greg Revenu, co-founder and Managing Partner of Bryan Garnier, said: “With PG’s deal experience and extensive relationships with North American strategic buyers and Private Equity firms, we will add both to our U.S. execution capabilities and to our buyer and investor access for our clients both within the United States and in Europe, and will continue on our mission to offer first class credentials and capabilities on both sides of the Atlantic, enhancing our position as a premier, global full service investment banking firm”.
About Bryan, Garnier & Co
Partner-led and owned, Bryan Garnier is one of the world’s premier independent full-service investment banks for high growth healthcare and technology-led companies and their investors. Clients benefit from our relentless commitment to their long-term success, unparalleled insights into these strategically important sectors and strong relationships with investors – from private equity and venture capital to institutional and strategic investors across the US, Europe, and Asia.
As a sector driven investment bank, our advice is rooted in deep industry knowledge with a global perspective, and clients benefit from our full-service platform and product expertise that will accelerate their long-term success.
MEDIA CONTACTS
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Bryan Garnier Expands Its Business and Tech-Enabled Services Investment Banking Team with the Addition of Eric Madar
Eric Madar
Investment Banking
LONDON AND PARIS, 31 January 2023 – Bryan Garnier & Co, the leading investment bank for European healthcare and technology-related companies has announced that Eric Madar has joined the firm as a Vice President. Eric joins the Business and Tech-Enabled Services investment banking team in Paris, where he will play a key role in deal origination with a particular focus on IT and engineering services, reinforcing the Bank’s leadership within this sector.
Eric’s previous roles include M&A Director at Segula Technologies, where he led the M&A Department and was very active on deal origination, and M&A analyst at Atos Worldline. Eric has over 10 years’ experience in corporate M&A within large companies, leading both domestic and cross-border M&A transactions from end-to-end. He has executed small to large cap deals across Europe, the US and Australia, involving companies that provide IT/Engineering services for a range of sectors including energy, healthcare and automotive sectors. Eric holds an MSc in Management with a major in M&A and strategic alliances from Audencia Business School in Nantes and studied Corporate Finance within University of Cincinnati in the US.
Guillaume Nathan, Partner and Head of Bryan Garnier’s Business and Tech-Enabled Services team said: “Having worked at a number of major corporates, Eric brings with him deep sector knowledge that will ensure our clients continue to benefit from expert sector-specific advice. His CEO relationships across the international IT/Engineering services ecosystem are unparalleled. Eric’s addition to the team supports our strategic ambitions, as we continue to lead in this important sector in Europe.”
Eric Madar, Vice President at Bryan Garnier said: “I am delighted to be joining Bryan Garnier to focus on deal origination and execution. I look forward to supporting clients across the European IT/Engineering services industry and leveraging Bryan Garnier’s full-service platform and access to US and European capital in order to deliver results for companies across this sector.”
In October 2022, Bryan Garnier’s Business and Tech-Enabled Services team advised full-service management consultancy Braincourt on its sale to Capgemini, global leader in consulting, technology services and digital transformation, demonstrating the Bank’s leadership in this space.
Alongside Business and Tech-Enabled Services, Bryan Garnier’s core sectors include Healthcare, Energy Transition and Sustainability, Software, Industrial Tech and NextGen Consumer. Bryan Garnier’s mission of investment banking for a better future continues to drive the firm as it backs disruptive companies and their investors that are providing solutions to some of the world’s most important challenges.
Bryan, Garnier& Co Sponsors Euronext’s TechShare Program 2023 To Support European Tech Companies To Go Public
PARIS, 26 January 2023 – Bryan, Garnier & Co, the leading investment bank for European healthcare and technology companies, today announced it is sponsoring the eighth edition of TechShare, as the Bank continues its partnership with Euronext. TechShare 2023, a 6- months one-of-a-kind educational pre-IPO program launched in Rotterdam today, led by the European leading market infrastructure Euronext, was created to provide customised and practical advice to technology growth companies in Europe they prepare to go public.
Bryan Garnier’s sponsorship of TechShare marks the second milestone in Bank’s long-term partnership with Euronext after the Euronext Tech Leaders’s sponsorhip. This initiative aligns with Bryan Garnier’s mission to provide outstanding advice and access to global capital for European disruptors in cutting-edge sectors including cleantech, hydrogen, e-mobility, cybersecurity, food and agri tech, healthcare, biotech and fintech.
Commenting on launch of TechShare, Euronext said:
“Euronext is happy to launch the 2023 edition of TechShare and IPO Ready, the pan-European pre-IPO educational programmes that supports European Tech companies aiming to go public in the next years. This year the programme will cover 9 European countries: Belgium, France, Germany and Central-Eastern Europe, Italy, the Netherlands, Portugal and Spain, plus Ireland and Norway. 140+ companies from 16 different Countries will be joining the 2023 cohort starting from the opening campus in Rotterdam.
During the six-month training programme structured around several main complementary modules, participants will discover the roadmap towards an IPO. In each country several workshop sessions will be held with expert partners covering the IPO process, the legal perspective, IPO valuation, equity story, financial communication, corporate governance and post-listing requirements. Companies will benefit from extensive individual coaching sessions with audit firms, lawyers, communication specialists and investor relations specialists providing customised advice.
Since the launch of Euronext’s TechShare and IPO ready pre-IPO educational programmes in 2015, more than 680 alumni have participated. With 700+ Tech companies listed on its markets, Euronext is the number one equity listing venue for Tech in Europe”
IT Services : The digital transformation steams ahead
PARIS | LONDON | January 25th, 2023
The Bryan, Garnier & Co software equity research team is pleased to release: IT Services Update: “The digital transformation steams ahead” which takes a deep dive into market drivers, valuation, and M&A in the IT services industry.
Though the economic slowdown is here, the digital transformation is still at the top of corporate agendas. Business model transformation, process automation, digital experience, supply chain resilience and, more recently, sustainable operations, require an increasing amount of IT work as these projects become mainstream. Valuation multiples for listed IT Services firms look to have reached a trough, and European players in this market have never been so cheap compared to their US and Indian peers since 2015. In parallel, there is a slowdown in M&A deals, but private equity funds remain very active in that domain, while some players refocus themselves on their most growing and profitable businesses through spinoffs.
Bryan Garnier’s latest White Paper reviews the business opportunities in the IT Services sector, as well as challenges for the industry. Read this report to learn about the key trends that will shape the IT services market, and why we consider the current low valuation multiples in the IT Services industry to provide further opportunities for M&A. Contact your Bryan Garnier representative if you would like to speak to the author, Gregory Ramirez.
Bryan Garnier Innovation Series: TCR therapeutics
bethsabee gresse
HOSTED BY : BRYAN GARNIER HEALTHCARE RESEARCH TEAMMONDAY 6 FEBRUARY | 2pm - 4pm CET
Join our analyst Olga Smolentseva and our guests in roundtable discussions about the present and future of TCR-guided therapies in oncology. These conversations are a unique opportunity to get a comprehensive update and learn more from the European companies leading innovation in the field.
The Carbon Economy
Bryan Garnier’s Energy Transition & Sustainability Research team today published a White Paper on “The Carbon Economy: How to address the greatest challenge humans have ever faced?”, where we present an in-depth assessment of the road ahead towards zero emissions. Recently, at COP27, governments debated how restoring trust and dialogue between the two hemispheres could accelerate progress on climate finance. In 2022, with around 1.15°C global average increase in temperature and extreme heat events occurring 3.1x more often per decade than in pre-industrial times, we might already be late for the 1.5°C target. Backed by regulation, a flourishing ecosystem of the carbon economy is emerging, with companies progressively understanding they have no choice but to adapt to this new environment.
We explore the technologies that have the potential to reduce GHG emissions, improve their measurement, accounting, monitoring and certification. We also look at future developments and discuss which specific needs are addressed in the context of mounting pressure from consumers, investors, and policymakers to fight climate change.
Emissions reduction can only work with functioning and trusted carbon markets in place, for regulatory compliance or voluntary. Such markets are increasingly supported by industries looking for ways to mitigate unavoidable emissions. They allow new business models to emerge for the creation and trading of credits.
Contact your Bryan Garnier representative for more information.
European cannabis
While the Americas have taken the lead in legalising cannabis for both medicinal and adult-use, the point of no return for global legalisation has passed and it is only a matter of time before other regions follow with progressive regulations. This is the case of Europe, where over the last two years, several initiatives have been taken to gradually legalise medical cannabis.
Specifically, these initiatives concern Germany, Switzerland, Spain, and France, while Israel is already on the forefront of medical cannabis research and access. Simultaneously, discussions concerning legalisation of adult-use cannabis seem to remove some of the stigma among physicians and patients. Indeed, several countries (the Netherlands, Switzerland, Malta, Luxembourg) are going a step further and are trialing adult-use regulations. However, Germany’s intent to deliver an adult-use cannabis market could be the trigger for legalisation in other European countries and deliver significant growth in the legal European cannabis industry. The way the German government has approached the international legality question is with an “interpretation declaration” to the other contracting parties. If the European Commission follows this German pathway, it would establish a blueprint for legalisation of cannabis in other European countries. Today, there is barely a legal European cannabis market to speak of, but the total market (99% illegal), is already EUR 65bn. As legalisation is spreading across Europe, we expect the size of the legal European cannabis market to grow to EUR 16.8bn by 2027 from EUR 0.8bn in 2022.