CONSULTING & TECHNOLOGY SERVICES INDUSTRY UPDATE
Published by members of Fairmount’s IT & Business Services industry team, this report is a summary of both key M&A transactions and market performance of public companies within the IT & Business Services industry.
• Commercial IT Services
• Government IT Services (predominantly U.S. Federal)
• Business Process Outsourcing Services
• Management Consulting Services
• Other Professional Staffing and Related Services
HR TECH MONITOR
Published by our Technology team, the HR Tech Monitor provides a snapshot of current market trends and valuation metrics. Our insights are based on our active and ongoing dialogue with HR Technology market participants, including companies spanning middle market to large enterprises, with whom we are in frequent discussions regarding their M&A strategies and plans, as well as investors and industry analysts.
LIFE SCIENCES SOFTWARE MONITOR
Published by our Technology team, the Life Sciences Software Monitor provides a summary of market trends, public-company performance, and recent M&A and financing transactions. Fairmount actively tracks life sciences software companies in the following categories:
Data Aggregation and Analytics ("DAA") / Big Data
Sales and Marketing
PHARMACEUTICAL OUTSOURCING MONITOR
The Pharmaceutical Outsourcing Monitor focuses on all aspects of outsourcing in the Pharmaceutical and Medical Device sectors. The Monitor is published by Michael Martorelli, a Director at Fairmount, who had a two-decade career as a research analyst covering a variety of healthcare companies for both buy-side and sell-side firms. The report principally spotlights leading companies in a particular segment of pharmaceutical outsourcers. In addition to the Pharmaceutical Outsourcing Monitor, Michael A. Martorelli writes a regular column on Financial Analysis for the trade publication Contract Pharma, and authors guest articles for other publications. He also speaks about industry conditions at meetings and conferences such as those sponsored by the Drug Information Association (DIA), Bio-IT World, and Elsevier’s Drug Discovery Today. For further information about upcoming events or these publications, please contact Michael Martorelli.
Published by our Technology team, this quarterly report covers the Software-as-a-Service (“SaaS”) industry, and includes updates on the following:
Market Review – highlights hot and interesting SaaS-related activity, trends, conferences and news
Capital Markets Review – analyzes the performance of 75+ publicly traded SaaS companies
M&A and Financings Review – includes analyses of notable M&A and financings transactions, as well as current M&A valuation metrics
Valuation Drivers – Fairmount’s perspective on the primary components that drive premium valuations for SaaS companies
Jointly published by Fairmount’s Healthcare, Technology and Information Technology Services teams, Vital Signs is our Healthcare Technology & Healthcare Technology-Enabled Services (collectively, “HIT”) Report. Vital Signs summarizes the market performance of public companies within the HIT sector, coupled with detailed accounts of recently completed HIT financing (venture capital and private equity) and M&A transactions.
SIA STAFFING WEBINAR
Staffing M&A in Transition - What to Expect in 2023
From transaction activity, to pricing, to deal structure, 2022 has ushered in tremendous change in the world of staffing Mergers and Acquisition (M&A). This webinar offers an important year-end update on the latest trends and what the 2023 outlook is shaping up to look like.
Key topics include:
Current state of pricing and deal terms
Effects of rising interest rates and stock market performance on buyer financing
Seller strategies around earnouts and other forms of contingent/delayed consideration
The importance of “non-binding” letters of intent-Timing the market and 2023 outlook
Paul Pincus - Partner, Ortoli Rosenstadt
Brian Wallins - Research Director, SIA
ASA TUESDAY WEBINAR SERIES
Staffing Mergers & Acquisitions in 2022: The State of the Market
What is the current state of the market in staffing mergers and acquisitions? Join Paul Pincus, partner at the international law firm of Ortoli Rosenstadt LLP and head of the firm’s private company mergers and acquisitions and staffing practices; Andy Brown, managing director at Fairmount Partners and head of our consulting and technology services practice; and Paul Mehring, co-president of Access Capital overseeing new business and underwriting, as they review the current state of the market in staffing mergers and acquisitions. With more than 35 years of expertise, they have the latest information that they’ll share with members in this exclusive state-of-the-market presentation.
During this webinar, attendees will learn
What the financing Market is and how it is affecting M&A
How to maximize value and prepare for a successful outcome
How deals are being structured and priced
What financial diligence lenders undertake in credit underwriting
Which common seller and buyer mistakes to avoid
Paul Mehring - co-President, Access Capital
Paul Pincus - Partner, Ortoli Rosenstadt
P5M: A VALUE CREATION FRAMEWORK FOR EMERGING GROWTH TECHNOLOGY COMPANIES
Fairmount Partners P5M Planning Methodology (“P5M”) was developed to create common language and consensus for strategic decisions across organizations to optimize business value against risks. Developed over a 20-year period and based on hundreds of client interactions, P5M leverages Fairmount’s broad experience working with emerging growth companies.
P5M highlights areas of strength and weakness that can be addressed in advance of a fundraising or sale process, as well as a set of key performance indicators that identify the most effective ways of driving incremental value. The process involves analyzing a company across six different vectors in order to create a roadmap to optimize shareholder / stakeholder value over time. P5M is part of Fairmount’s philosophy and commitment to full-lifecycle support for emerging-growth technology companies.
THE RISE OF LIFE SCIENCES SOFTWARE: FIXING THE BROKEN CLINICAL TRIAL PROCESS
The pharmaceutical industry is facing an ever-increasing gap between the need for new drugs and the development time and costs for creating them.
This situation has rendered the old methods of R&D and clinical-trial management obsolete and fueled a surge in demand for a new generation of life sciences software (“LSS”) tools addressing pharma’s R&D challenges.
In this webinar, Fairmount was joined by leaders from companies driving innovation across key emerging areas within LSS which address pharma’s R&D challenges including:
Data Quality; and
Patient Recruitment / Engagement.
Max Kanevsky - Founder & CEO, Pinnacle 21
John Reites - CEO, THREAD Research
Ed Seguine - CEO, Clinical Ink
TRENDS IN TECHNOLOGY WEBINAR SERIES
Harnessing the Magic of SaaS Metrics
Strong SaaS valuations are driven in large part by the operational and sales efficiency of the SaaS Model. Those companies and management teams that understand and track SaaS metrics not only operate more efficiently, but also receive premium valuations in M&A transactions and capital raises.
Fairmount Partners tracks more than 100 public SaaS companies, as well as the hundreds of SaaS M&A transactions that are completed every year, and we research at depth the drivers of value. Currently, public SaaS companies are trading at record levels, averaging 16.8x last twelve months (“LTM”) revenue, with "Rule of 40" public SaaS companies averaging 30x LTM revenue.
In the first session of our Trends in Technology Webinar Series, we were joined by three SaaS experts with hands-on experience as we shared the metrics that leading SaaS companies track and why, what we can learn from these metrics, and how performance against those metrics drives strategic value. We also shared direct experiences with companies that have achieved extraordinary valuations.
Ben Murray - Founder, the SaaS CFO
Cody Nystrom - Managing Director, SJF Ventures
Ray Rike - Founder and CEO, RevOps Squared
Webinar: Driving Towards 10x - How to Achieve a Premium Valuation
Despite the recent COVID-related market dislocation, tech valuations, particularly SaaS valuations, have continued their epic run, with many companies achieving 5-10x revenues or higher. It's reasonable for business owners to wonder if they too could obtain those types of multiples in a financing or sale. The answer is...it depends...on whether your business has the right characteristics. And once you understand those characteristics, you can begin to move your business up the valuation ladder.
As a result of the experiences gained through working with hundreds of emerging growth companies over a 20-year period, we at Fairmount Partners have reverse-engineered the elements that drive a premium or super-premium valuation.
In this webinar we share the secrets, processes and tools that emerging growth companies can leverage to optimize value both before, and during, a transaction process.
Webinar: Three Legends and a Recession
The COVID-19 pandemic and subsequent economic shutdowns brought to an end a period of 11 straight years of economic growth. And while this recession is certainly unique, challenges are being exacerbated by the fact that, given the length of the prior economic expansion, many executives have limited or no experience managing the minefields of a recession. For those executives who successfully managed through them, previous recessions have provided valuable lessons.
View three past recipients of the PACT Legend Lifetime Achievement Award, all key leaders in our region who have each helped myriad companies successfully navigate the waters of severe recession, discuss the unique challenges, opportunities and lessons learned from past recessions as we seek to understand - and reemerge from - the current one.
Webinar: How to Run a Successful Virtual Company
With the impact of COVID-19, most if not all office-based businesses have been forced to go virtual. But what should executives do differently when running a virtual company to ensure it functions successfully? Nick Wilkinson, CEO of Binary Tree, has a unique understanding of how to successfully operate a virtual organization, including both the tricks and potential traps, having gained experience leading a 100% virtual organization of more than 150 employees spread over 10 countries in North America, Europe, and Asia. He and moderator Allen Born review the technology, processes, and culture that have allowed Binary Tree, a leader in cloud migration solutions, to compete at the highest levels.