© 2013 brightman almagor zohar & co. m & a trends december 2013
TRANSCRIPT
© 2013 Brightman Almagor Zohar & Co.
M&A Trends
December 2013
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Reaching the Top?
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From Technology to Innovation
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Few words about innovation…
Entire industries are being disrupted by new technologies
R&D vs. BREAKTHROUGHS
A wave of Fortune 500 companies who come to seek innovation in Israel
……
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Deloitte VC Survey Expectations as of Quarter 3, 2013
The VC Survey is a Deloitte initiative, which is conducted on a quarterly basis.
© 2013 Brightman Almagor Zohar & Co.
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Deloitte VC Survey Expectations as of Quarter 3, 2013
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Deloitte VC Survey Expectations as of Quarter 3, 2013 Recently, there has been a dramatic increase in the number of Mobile Application companies. The survey reflects this trend, as most of the respondents (67%) believe there are too many companies in this sector. In contrast, only 7% of the Venture Capitalists believe there are too many companies in the Security sector, which, as abovementioned, is expected to be a flourishing sector in the upcoming year.
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Deloitte VC Survey Expectations as of Quarter 3, 2013 It is apparent that most Venture Capitalists would like to see more energy storage companies in the market. In addition, in spite of the decrease in the number of hardware companies, there is a clear perception that there is no need for more hardware companies, as none of the respondents chose this category.Another interesting issue is that the respondents believe there are relatively not enough companies in the data infrastructure and fintech sectors..
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Deloitte Fast 50
The Deloitte Brightman Almagor Zohar Technology Fast 50 Program annually recognizes and honors the 50 private andpublicly held fastest growing technology companies in Israel, based on percentage revenue growth over a five-year .period
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Deloitte Fast 50 2013
Company five-year average revenue growth by industry sector 2013
Company five-year average revenue growth by industry sector 2012
© 2013 Brightman Almagor Zohar & Co.
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Technology M&A Multiples – Q2 2013
Source: Capital IQ
EV/ EBITDA
EV/ Revenue
Sector
13.2x 3.4x Software
8.8x 1.7x IT Services
16.9x 4.2x Internet/ E-Commerce
6.8x 0.9x Hardware
Average M&A Multiples for Companies in the Technology Sector: Average Multiples for Publicly Traded Companies:
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Telecom M&A Multiples – Q2 2013
Source: Capital IQ
EV/ EBITDA
EV/ Revenue
Sector
5.4x 1.6x Telecom Services
8.2x 3.1x Cable & Satellite
10.4x 1.4x Telecom Equipment
Average Multiples for Publicly Traded Companies:
Average M&A Multiples for Companies in the Telecom Sector:
© 2013 Brightman Almagor Zohar & Co.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.