GrowthTV Tech Series: Powering the Future of the Middle Market
In this GrowthTV series, we explore the role of technology in shaping the landscape of middle-market M&A, from valuations to exits
These days, it’s almost impossible to think of a sector that tech doesn’t touch. According to a 2022 report from PitchBook Data, first-class technology has become an ever-more important component to organizational success, allowing companies to make intelligent decisions in uncertain times. This makes technology essential to any growing middle-market company and their investors.
In this GrowthTV Tech Series, we’ll consider technology’s far-reaching implications in middle-market M&A, from deal sourcing to valuations to exits.
You’ll hear from experts who identify technology-based industries that offer strong M&A opportunity, including Corporate Advisory Solutions’ Michael Lamm, who provides his outlook for the tech-enabled business services space, as well as Dunning Capital’s David Swintosky and AgriTech Capital’s Aidan Connolly, who highlight the strengths of an evolving agriculture technology landscape.
You’ll also learn how tech-related transactions are at the forefront of emerging trends in M&A, with AnswerLab’s Amy Buckner Chowdhry sharing how DEI is not only vital to the success of her technology company, but also played a key role in choosing a strategic investor, Shamrock Capital, and advisor, Clearsight Advisors.
It’s an informative case study for other technology businesses and their investors at various points of their dealmaking journey. Adding to that conversation in this series are Stout‘s Tricia Salinero, who explores important factors impacting tech sector valuations in today’s environment, as well as Baker Donelson’s Justin Daniels, who discusses the role of technology and cybersecurity during the exit process.
Jump to video:
Tech-Enabled Services: A Bright Spot in a Dimming Deal Environment with Corporate Advisory Solutions’ Michael Lamm
Is Agritech Ready for PE? with Dunning Capital’s David Swintosky and AgriTech Capital’s Aidan Connolly
More Than Lip Service: DEI in Private Equity with AnswerLab’s Amy Buckner Chowdhry
Sell-Side Considerations for Tech Sector Valuations with Stout’s Tricia Salinero
Planning an Exit: Where Does Cyber Risk Fall? with Baker Donelson’s Justin Daniels
Middle-market companies face plenty of headwinds today, and those offering tech-enabled business services are no exception. As people-based operations, these companies can be particularly challenged by the ongoing talent crunch.
Yet the space is also a resilient one, says Michael Lamm, managing partner at Corporate Advisory Solutions, especially in the areas of healthcare revenue cycle management, call centers and debt collection.
Lamm joins GrowthTV to share important considerations for potential tech-enabled business services investors, which must be aware of the unique nuances of the space. That could include everything from HIPAA or data protection compliance to the sustainability of financial performance in a recessionary environment. Acquirers must “go in eyes wide open,” says Lamm, and with the right advisors and consultants nearby to help.
Agriculture technology, or Agtech, has progressed leaps-and-bounds in recent years as innovation unlocks new ways of feeding the planet and driving sustainability. David Swintosky, managing director of Dunning Capital, and Aidan Connolly, president of AgriTech Capital, join GrowthTV to share insights into a rapidly evolving industry, and why middle-market dealmakers have plenty of opportunity to jump into this multifaceted landscape.
Competition for the best middle-market investment targets has never been tighter. For the recent transaction between Shamrock Capital and AnswerLab, an independent UX research firm to the world’s largest tech companies, the commitment to diversity, equity and inclusion took center stage.
Amy Buckner Chowdhry, founder and CEO of AnswerLab, has prioritized initiatives around DEI, which have been central to the success of her fast-growing tech company. When selecting a partner, Shamrock’s dedication to DEI made them an ideal choice for AnswerLab as their first strategic investor. The partnership was announced in September, with Clearsight Advisors serving as an advisor to AnswerLab on the transaction.
In this episode of GrowthTV, we ask the middle market community what we can learn from the AnswerLab deal and the emphasis on DEI as a differentiator when selecting an aligned partner.
Historically, sellers of technology companies would set their sights on other technology companies when sourcing potential buyers. That’s no longer the case, says Tricia Salinero, managing director and head of technology within investment banking at Stout. In this episode of GrowthTV, she offers advice for sellers of technology companies, including what they should know about valuations in today’s market, and why they should broaden their short-list of potential acquirers beyond other tech businesses.
Listen to the full discussion in our Middle Market Growth Conversations podcast, where Salinero explores what it means to be a technology company today, and what buyers should consider when exploring possible acquisition targets.
Cyber threats are certainly top of mind for many operators today, but in practice, how high of a priority is cybersecurity in the exit planning process? Baker Donelson shareholder Justin Daniels speaks with GrowthTV about the implications for dealmakers who choose to ignore the cyber threat, and offers guidance for smaller firms and operators to safeguard deals with limited resources.