Skip to content

Insights

  • Unlocking value in the era of public-to-private transactions

    Unlocking value in the era of public-to-private transactions

    Unlocking value in the era of public-to-private transactions In 2023, global private equity public-to-private deals reached a 16-year high, and according to Preqin, 2024 is likely to witness a continuation of this trend.

    Read more

  • A 2024 Turnaround?

    A 2024 Turnaround?

    The uncertain and unfavourable market conditions of 2023 created an environment that hindered the growth of M&A volume and value. Across various industries, factors such as uncertainty surrounding macroeconomic conditions…

    Read more

  • International Expansion Demands Cultural Understanding

    International Expansion Demands Cultural Understanding

    Expanding a business across borders, whether through organic or inorganic growth, is an enticing prospect for management teams and investors seeking increased market reach. However, the pivotal factor often overlooked in the pursuit of global expansion is cultural integration.

    Read more

  • How to Identify P2P Candidates

    How to Identify P2P Candidates

    In September, Aalto commented on the increase in public-to-private (P2P) transactions seen in the first half of 2023. This trend has continued into the second half of 2023, and Mergermarket reports that the total number of UK P2P transactions this year is up 145.5%…

    Read more

  • The Rising Importance of Efficiency Metrics in the SaaS Industry

    The Rising Importance of Efficiency Metrics in the SaaS Industry

    Last year, we discussed the increasing significance of retention metrics in the Software-as-a-Service (SaaS) sector. Another crucial element that SaaS companies should focus on are efficiency metrics.

    Read more

  • It Services: 2023 Industry Snapshot

    It Services: 2023 Industry Snapshot

    In December, Aalto Capital released its latest Insight Paper, “IT Services: 2023 Industry Snapshot,” exploring key aspects of the IT Services sector. The report describes the current market environment, emerging trends, growth impediments, and M&A dynamics.

    Read more

  • The Importance of Identifying and Retaining Talent

    The Importance of Identifying and Retaining Talent

    Earlier this year, Aalto published an article identifying key factors which should be considered when assessing a potential M&A transaction. One factor we highlighted for achieving a successful transaction was the retention of key talent and identification of new talent as necessary.

    Read more

  • Are There Benefits to Down Rounds?

    Are There Benefits to Down Rounds?

    “Down rounds,” “up rounds,” and “flat rounds” refer to the valuation changes of companies between funding rounds. Up rounds indicate growth and investor confidence, and down rounds signal the opposite.

    Read more

  • Investor Sentiment Towards Small Cap Stocks

    Investor Sentiment Towards Small Cap Stocks

    In the current economic climate, morale among small-cap stocks is low. A recent survey by the Quoted Companies Alliance (QCA) found that almost one in four small- and mid-cap quoted companies currently see no advantage in maintaining their listing on the London Stock Exchange.

    Read more

  • The Impact of Technological Advancements on Competitive Industries

    The Impact of Technological Advancements on Competitive Industries

    In an era defined by rapid technological progress, the business world has undergone a profound transformation, leading to significant shifts in competitive dynamics.

    Read more

  • How to Portray Your Target Market to Investors

    How to Portray Your Target Market to Investors

    The acronyms ‘TAM’, ‘SAM’, and ‘SOM’ are often thrown around in investment conversations, but what do these terms mean, and what is the best way for businesses to present them?

    Read more

  • The Growing Opportunity Cost of Poor Cybersecurity

    The Growing Opportunity Cost of Poor Cybersecurity

    Last week, the UK hosted the global ‘AI Safety Summit’ which addressed the growing concern over AI-powered cybersecurity attacks, among many other topics. This comes as experts in the field predict AI’s impact on humanity is becoming less and less positive.

    Read more

  • UK EV Charging Infrastructure Surges Forward Despite Challenges

    UK EV Charging Infrastructure Surges Forward Despite Challenges

    Despite Rishi Sunak’s recent announcement to scale back the UK’s drive to net-zero, there is some good news for the electrification industry. According to Zapmap, EV chargepoint installations in the UK were up 82% YoY in the first half of 2023.

    Read more

  • Preparing Your Bootstrapped Company for M&A Success

    Preparing Your Bootstrapped Company for M&A Success

    Bootstrapped companies face unique challenges when it comes to mergers and acquisitions (M&A). These companies may not have the same financial oversight, legal and compliance matters, and intellectual property (IP) management as their larger counterparts, which can make the M&A process complicated.

    Read more

  • The AI Regulation Trade-off: Market Growth Vs Red Tape

    The AI Regulation Trade-off: Market Growth Vs Red Tape

    The global shift to widespread use of generative AI highlights its immense value. This limelight has not come without critics, with leading figures in AI discussing the risks associated and how AI may pose a threat to humanity.

    Read more

  • The Emergence of Universities on the Venture Capital Scene

    The Emergence of Universities on the Venture Capital Scene

    Academia’s ‘ivory towers’ suggest a detachment from the practical concerns of business and societal issues. However, boundaries between the academic and corporate worlds are becoming increasingly blurred.

    Read more

  • The Growing Popularity of Public-to-Private Transactions

    The Growing Popularity of Public-to-Private Transactions

    In the face of a global slowdown, European public-to-private (P2P) transactions increased 43% YoY in the first half of 2023, as tracked by Mergermarket at the end of June. P2P transactions almost matched IPOs in 1H23, totalling 53 and 57 transactions respectively.

    Read more

  • Private Investment Reshaping Top European Football Clubs

    Private Investment Reshaping Top European Football Clubs

    Recent analysis done by PitchBook shows that 36% of top-flight clubs in England, France, Germany, Italy and Spain have private capital ownership in some form. These investors include private equity and venture capital funds as well as consortiums of high-net-worth investors.

    Read more

  • The Mutual Benefit of IT Services Rollups

    The Mutual Benefit of IT Services Rollups

    Given the number of current players as well as new entrants in the IT services market, private equity investors are encouraging ‘buy and build’ strategies to inorganically grow their investments. According to EY, over half of all private equity deals within the IT services industry were buy and build acquisitions in 2022.

    Read more

  • Corporate Venture Capital Opens New Avenues for Growth

    Corporate Venture Capital Opens New Avenues for Growth

    In recent years, corporate venture capital (CVC) has emerged as a dynamic force in the investment landscape. Last year, CVCs participated in 21.7% of all European VC rounds, the highest annual percentage to date, according to PitchBook.

    Read more

  • Is Climate Adaptation the Next Big Thing?

    Is Climate Adaptation the Next Big Thing?

    Following an increase in unusual weather patterns across the Northern Hemisphere this summer – including record heat waves across Europe – many have started to wonder what a future shaped by climate change might look like.

    Read more

  • Digital Payments Are Transforming Economies

    Digital Payments Are Transforming Economies

    Physical cheques never gained popularity in Africa, though they remain in use in America; why is this? Slow transportation links, fraud, and limited access to formal banking were to blame on the continent.

    Read more

  • How to Convince Investors You Are Ahead of the Curve

    How to Convince Investors You Are Ahead of the Curve

    Being ‘ahead of the curve’ often suggests that a company possesses innovative qualities, setting it apart from its competitors. Yet, proclaiming this without solid evidence could raise eyebrows among potential investors.

    Read more

  • Selling Shovels in a Gold Rush

    Selling Shovels in a Gold Rush

    As rumours of the discovery of gold spread across the nation, the first millionaire of the California Gold Rush was not mining the gold itself but capitalising on the miners’ needs, selling picks, shovels, and pans. Companies can turn to this metaphor to evaluate whether their business model will stand the test of time, rather…

    Read more

  • Cava Group’s IPO Triumph Sparks Optimism for PE Exit Opportunities

    Cava Group’s IPO Triumph Sparks Optimism for PE Exit Opportunities

    The PE market is facing an impending maturity wall, but there is a glimmer of hope thanks to Cava Group’s (the VC-backed Mediterranean restaurant chain) listing on the NYSE in June 2023. As the most successful IPO for a US company since July 2022, Cava’s listing signals a potential resurgence in the IPO market.

    Read more

  • Synergy Identification and Capture in M&A

    Synergy Identification and Capture in M&A

    Identifying synergies between companies is often the first and perhaps the most important step in the acquisition process, as it should in most instances form the foundational justification for a merger or acquisition.

    Read more

  • The Essential Role of Recognising Competitors While Fundraising

    The Essential Role of Recognising Competitors While Fundraising

    Securing funding for a company is a complex task, and one of the most underestimated elements is the acknowledgement of competitors. It is a common mistake for founders and CEOs to claim that they face little or no competition. Such a scenario is, in fact, rarely the case and often serves as a red flag…

    Read more

  • Unlocking Liquidity: The Growth of Private Market Secondaries

    Unlocking Liquidity: The Growth of Private Market Secondaries

    Private markets are known for their illiquidity compared to public securities that allow investors to unwind positions quickly. However, private equity returns have historically outperformed public equities due to risk-return profiles.

    Read more

  • Are We Seeing a Shift Away From the USD?

    Are We Seeing a Shift Away From the USD?

    In March and April 2023, China’s outbound payments were made predominately in Renminbi (RMB), a first for the currency.

    Read more

  • The Increasing Significance of Retention Metrics in the SaaS Market

    The Increasing Significance of Retention Metrics in the SaaS Market

    We are seeing a notable shift in investor focus in the SaaS sector. Rather than investing in businesses chasing growth at any cost, investors are showing increasing interest in companies underpinned by strong, sustainable business models.

    Read more

  • How To Assess Potential Acquistions and Exectute for Success

    How To Assess Potential Acquistions and Exectute for Success

    There are benefits of consistently tracking your M&A pipeline – but once you have identified possible targets, how do you begin making acquisitions?

    Read more

  • Purpose Has Never Been More Important

    Purpose Has Never Been More Important

    The top five accounting firms in the UK according to Accountancy Today’s 2022-2023 list come as no surprise: Deloitte, KPMG, PwC, EY, and BDO, in that order. They have a collective turnover of nearly £16 billion and 100,000 UK employees. They deal with UK companies large and small on an ongoing basis, so their sphere…

    Read more

  • Embracing SaaS: Key Strategies for Success in the Digital Age

    Embracing SaaS: Key Strategies for Success in the Digital Age

    In the fast-paced digital age, Software as a Service (SaaS) has become increasingly significant. As reported by Gartner, the market value of SaaS has seen a remarkable increase, escalating from $31.4 billion in 2015 to $195 billion in 2023. This surge highlights the importance of SaaS and opens opportunities for providers.

    Read more

  • The Momentum of Cross-Border Deal-Making

    The Momentum of Cross-Border Deal-Making

    While the pandemic, US-China trade tensions, and other macroeconomic factors dampened international deal-making, cross-border M&A seems to be on the rise. Several key factors contribute to this trend.

    Read more

  • Have You Thought About Your M&A Strategy Lately?

    Have You Thought About Your M&A Strategy Lately?

    Though a company’s operations are first and foremost the focus of a business, many companies and investors also rely heavily on buy-and-build strategies to scale up growth and enter new markets. While a strong organic growth strategy is vital to the success of a business, having an M&A strategy, whether passive or active, can keep…

    Read more

  • ESG Initiatives Are Adding Real Value

    ESG Initiatives Are Adding Real Value

    Though ESG initiatives have historically been seen as costly public-pleasing exercises, ESG-positive business choices are now often the less costly option for businesses. Over the past several years, there has been a shift in the practicality of ESG practices…

    Read more

  • Combat Stagflation By Increasing Productivity

    Combat Stagflation By Increasing Productivity

    Stagflation is characterised by stagnating economic growth and high unemployment while simultaneously experiencing high inflation rates. This phenomenon was considered an impossibility until it was first conceptualised in 1965.

    Read more

  • The Rule of 40: Boosting Valuations for SaaS Companies

    The Rule of 40: Boosting Valuations for SaaS Companies

    In the competitive SaaS landscape, maintaining a balance between growth and profitability is crucial for long-term success and higher valuations. The Rule of 40 has emerged as a valuable metric for companies to achieve this balance while attracting investors’ attention.

    Read more

  • Private Equity Vs. IPO: A Performance Comparison in Europe

    Private Equity Vs. IPO: A Performance Comparison in Europe

    For many founders, ringing the opening trading bell of the NYSE or LSE as their company goes public is a distant dream and a sign they have made it. However, the IPO market today may look less glossy to business owners weighing their financing options.

    Read more

  • How does working from home affect sick leave?

    How does working from home affect sick leave?

    With the far more common occurrence of working from home (WFH) brought about initially by the COVID-19 pandemic, many employees now seem to be working, or at least partially working, while sick.

    Read more

  • AI: Rapid growth and potential drawbacks

    AI: Rapid growth and potential drawbacks

    Artificial intelligence (AI) is a field of computer science that focuses on creating intelligent machines that can perform tasks that normally require human intelligence. AI algorithms use statistical analysis and pattern recognition to learn from ‘big data’ and improve performance over time.

    Read more

  • Could ‘Buy and Build’ be the right growth strategy in today’s market?

    Could ‘Buy and Build’ be the right growth strategy in today’s market?

    Growing your business organically in today’s market is not easy. A growth strategy to consider is Buy & Build.

    Read more

  • The SVB Collapse: A new landscape for venture debt financing

    The SVB Collapse: A new landscape for venture debt financing

    The recent dramatic collapse of Silicon Valley Bank (SVB), once the 16th largest US bank, has garnered significant media coverage. SVB had $209bn in deposits and represented one of the largest bank failures.

    Read more

  • Why trying to time the market in your next fundraising may be a mistake

    Why trying to time the market in your next fundraising may be a mistake

    Trying to time the market for a fundraising round is a tempting strategy for many companies looking to maximize their valuation and attract suitable investors. It is incredibly difficult to predict market trends with any degree of accuracy.

    Read more

  • The Denominator Effect: Accelerating your fundraising plans

    The Denominator Effect: Accelerating your fundraising plans

    There were 45% fewer private equity fund closings in 2022 vs 2021, according to data from S&P Global. Alongside record inflation and rising interest rates, a less quoted reason for this decrease is the Denominator Effect.

    Read more

  • Private equity funds are searching for quality mid-market investments

    Private equity funds are searching for quality mid-market investments

    Private equity funds are searching for quality mid-market investments European private equity funds currently have an estimated £240 billion to invest. What are the most important factors they currently look for in a high-quality investment?

    Read more

  • ESG-washing and why you should avoid it

    ESG-washing and why you should avoid it

    Private equity funding in the ESG space continues to grow, and a stronger ESG proposition has been seen to increase company valuations. Companies are eager to capitalise on this trend; however, with topics such as greenwashing gaining attention, it is crucial for businesses to understand where their ESG compliance stands.

    Read more