Banks have long been an important and trusted pillar of the economy; from saving to lending, underwriting to trading, banks are a necessity for consumers and businesses. But, following the fallout from the recent financial crisis (nearly 10 years ago), banks have struggled, with increasing and ambiguous regulations, record low interest rates, slower global growth and higher scrutiny. Enter the latest wave of Fintech. Fintech is nothing new, with electronic trading, online brokerage, ecommerce and electronic payments well integrated into the financial ecosystems, but this time feels different. Launching a disruptive Fintech company has never been easier, with public cloud…
We are routinely approached by companies, shareholders and boards of directors telling us that their company was approached by a prospective buyer anxious to consummate a transaction. They may even have a non-binding indicative offer in hand – or expect one shortly. It can be exciting to have a sophisticated firm find your baby to be attractive – rewarding to be approached by a big potential buyer and it could be a load off your mind after years and years of hard work for a possible large payoff. But more often than not, we have found that one-off acquisition processes fail, or – at best – result in a sub-optimal deal. The examples are legion. The problems with these ad-hoc discussions are many.
With the advent of HTML 1 in 1993, which standardized the language used to create web pages, the potential of the internet became unlocked. With applications written in HTML combined with a viable connection (and authorization), suddenly anyone could access a treasure trove of information from anywhere on the planet – and sometimes beyond. (Think Hubble and the Mars Rover). With HTML, the internet effectively sped up the process of globalization to light speed. What would be next?
Long before selling their businesses, owners start thinking: “What’s my business worth?” Or, if they are a buyer, “How much should I pay?” Bankers like to talk about the value of publicly listed companies based on their stock prices and some reasonable “premiums” above those prices. There is nothing wrong with this approach – but what is the right premium, if any, and how do you figure it out?
The first half of 2016 was the strongest on record for digital health companies. According to StartUp Health, there was nearly $4 billion invested in over 150 early stage deals. For 1H16, the top digital health investment category was patient/consumer experience at $958 million, or nearly 25% of invested capital. StartUp Health notes that over 7,600 startups around the world are working on digital health. And that’s just the startups.