Philip Ellis’ Post

One more piece of insight regarding 2023 and 2024 revenue growth among #WorkTech and #HRTech vendors: it has been tough for everyone! Businesses in the sector, both publicly listed and private / VC backed, struggled to grow their top line in 2023 and 2024. While some maintained their growth rate, most experienced growth rates of less than half vs. 2022. The latest report from Acadian Ventures confirms these findings, showing that 2024 ARR growth among businesses slowed to approximately 25%-40% YoY. In 2022, Venero Capital Advisors market report showed average growth of 60%-80%. The point is, you are not alone in this. And... performance metrics should always be considered within the broader context of the industry. #BusinessInsights #RevenueGrowth #IndustryTrends #HRtechnolgy #VentureCapital #MergersAndAcquisitions

The Future of Work space has become increasingly attractive, particularly in EdTech, WorkTech and HR Tech. The faster decline in interest rates throughout Europe is creating a favourable environment for acquirers and investors. Lower borrowing costs enable acquirers to access capital more easily, potentially leading to higher valuations and more competitive bidding processes. However, acquirers and investors must consider the risks of overpaying and the potential impact of future interest rate hikes. To navigate the changing M&A landscape, acquirers should: 1. Monitor the evolving interest rate environment and its impact on valuations and competition 2. Conduct robust due diligence and have realistic valuation models 3. Identify targets aligned with key Future of Work trends with strong growth potential 4. Consider cross-border opportunities, particularly in Europe 5. Have a clear post-acquisition integration strategy As interest rates continue to shape the M&A landscape in the Future of Work space, acquirers and investors who can adapt their strategy and make informed decisions will be best positioned to capitalise on the opportunities ahead. If you need help navigating this complex landscape, we have extensive experience in helping companies and investors acquire companies globally. Feel free to reach out to discuss how we can assist you in making the most of your acquisition strategy. #FutureOfWork #SaaS #Tech #Technology #InterestRates #WorkTech #EdTech #HRTech #MergersandAcquisitions #InvestmentBanking

As private equity firms prepare for new deals and exits, uncertainty around enterprise software spending looms large. 𝗪𝗶𝗹𝗹 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗮𝗹𝗹𝘆 𝗼𝗿 𝗳𝗮𝗰𝗲 𝗻𝗲𝘄 𝗵𝗲𝗮𝗱𝘄𝗶𝗻𝗱𝘀? The talent market's trajectory remains pivotal in shaping outcomes. What’s Ahead for 2025? Get the latest insights and trends in the 2H 2024 Talent Market Updatel - Download your report today: https://lnkd.in/geYbZiBh #executivesearch #privateequity #saas #software

@RemoFirst has a new look! What’s changed: The “F” in “First” is now capitalized, and our overall look is more modern and fresh.  What hasn’t changed: our commitment to helping companies employ the world’s best teams at the world’s best price.  #FutureOfWork #HiringTalent #GlobalTeams

Geographic location can play a significant role in SaaS valuations.   US-based companies often enjoy higher multiples compared to their European counterparts.   The key factors driving this valuation gap are:   1.      Abundant capital in the US enables SaaS companies to prioritise growth more aggressively   2.      European SaaS companies often face capital constraints, leading to a stronger focus on profitability   However, during economic downturns, the valuation gap narrows as investors and buyers prioritise profitability over growth, making European SaaS companies relatively more attractive.   SaaS companies must adapt their strategies based on specific circumstances to optimise value in any market condition, striking the right balance between growth and profitability - the Rule of 40. Click on the link in the comments section to access our White Paper where we cover this topic in more detail.   As an investment banker executing SaaS transactions, I help companies navigate these challenges in order to maximise shareholder value.   If you are looking to sell your business, raise capital or you'd like personalised advice on how to position your business optimally for a transaction, don't hesitate to email me at [email protected] or Philip Ellis at [email protected] to schedule a conversation.   #FutureOfWork #SaaS #HRTech #EdTech #WorkTech #Technology #MergersAndAcquisitions #Fundraising #InvestmentBanking

Venture investment in the US rose to $56B in Q2,2024. The highest level since 2022. (KPMG) Enterprise software sector makes up $43B of the $56B investments. (Eqvista) What this means for businesses is that there are countless software options to choose from. A sliver of that market is HR/Talent SaaS solutions. As a buyer of Talent SaaS it’s easy to fall into the trap of fragmentation in your tech stack and seriously impacting the employee and the candidate experience. Just in the world of #employerbranding alone there is tremendous fragmentation in SaaS being used: 1. Multiple tools for designing creatives. 2. Employee generated video tools. 3. Employee advocacy tools. 4. Brand listening tools. 5. Digital asset management tools. 6. Reporting and analytics tools. As the budget season is upon us - instead of buying any of the above tools separately, take your time to do research on platforms that may offer many of these functionalities in one single place. We can help you review your tech stack and find on average $250k annual savings in tool simplification. DM me to book a free review.

H1 Global Work Tech VC Results and Analysis are live. While the global #HRTech and #WorkTech market continued to see capital flowing at a similar rate to 2018 through 2020, the #TalentAcquisition category took a hit in dollar volume and deal volume. Get the numbers and the analysis in our latest free quarterly review. #VC https://lnkd.in/eujgdQJg

While the overall global #VC performance for #HRTech and #WorkTech is promising, it's carried by #HCM. In H1 the #TalentAcquisition category didn't see the dollar or deal volume we're used to seeing in comparison to the other major categories. Get the numbers, analysis, and register for next week's live stream review at WorkTech

𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐭𝐡𝐞 𝐩𝐢𝐯𝐨𝐭𝐚𝐥 𝐫𝐨𝐥𝐞 𝐨𝐟 𝐨𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐢𝐧 𝐝𝐫𝐢𝐯𝐢𝐧𝐠 𝐭𝐞𝐜𝐡 𝐞𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧 in the post-2022 economy. Learn how companies like Telework PH are redefining growth strategies, enhancing global reach, and fostering innovation in the tech sector. Ready to explore how outsourcing can be your lever for success? Connect with us today to learn more. 👉🏼 https://lnkd.in/gmFsec4e 👉🏼 https://lnkd.in/gVK8i7Hx #businessowner #outsourcing #usa #techexpansion #economy

🔍 Curious about the M&A landscape for Future of Work tech companies? Our upcoming masterclass for EdTech, HR Tech, WorkTech and Wellbeing Tech leaders on November 14th at 9 AM GMT will dive deep into: 👉🏼 Future of work market structure 👉🏼 M&A process management 👉🏼 Achieving premium valuations 👉🏼 Typical timelines 👉🏼 Handling unsolicited approaches Don't miss this chance to learn from us, Hugo Dias. After working in this space for over 25 years between us, we have a lot of knowledge to share. Click the link in the comments below to register for the event. #FutureOfWork #SaaS #Technology #EdTech #HRTech #WorkTech #WellbeingTech #MergersAndAcquisitions #InvestmentBanking