Martin Mignot’s Post

The B2B SaaS industry no longer follows a growth trajectory a VC investor needs to realize their target exit multiple. In oder to find additional funding, many growth companies therefore search for creative M@A opportunities to transfer into the PE domain. Thank you for the illustrative examples I am reposting below, Martin Mignot. These creative M&A deals enable B2B SaaS companies to transition from the venture capital side to the private equity domain of the financial markets. Therefore, an IPO may no longer be a requirement if these newly-combined companies can generate both steady cash-flows and higher than industry standard growth rates. I am sure we will see many more such creative buy & build M&A transactions over the next 18 months as VCs need to provide liquidity to their LPs and PEs need to make use of their dry powder in a world where operational excellence is required and cheap debt no longer available.

[NEWS] Mews secures $100M to accelerate M&A activity Hospitality management cloud platform Mews has raised $100 million from Vista Credit Partners to fuel mergers and acquisitions (M&A) growth. 💼💰 This latest round of funding comes just six months after Mews secured $110 million, solidifying its unicorn status with a $1.2 billion valuation. The fresh investment brings the company’s total funding to $335 million since its 2012 launch. 🚀 Mews plans to use the funds to expand its M&A activity through its investment arm, Mews Ventures, which has already acquired nine companies. The funds will also boost technology investments to drive innovation across the hospitality sector. 🏨💡 CEO Matthijs Welle emphasized the opportunity to reshape hospitality by empowering staff through cloud technology. Founder Richard Valtr added, "The market is ripe for consolidation," as the company pushes forward with its ambitious acquisition strategy. Is this the next big wave in hospitality tech? 🤔 Read the full article HERE > https://lnkd.in/gRY8sM59 Reading Time: 2 minutes #mews #hospitality #funding #tech #mna #cloudplatform #vista #investment #unicornstatus

In The French Tech Journal: Buyouts by PE firms may be the best hope for the exits that the French ecosystem craves. LumApps CEO Sébastien Ricard and Bridgepoint partner David Nicault break down the metrics that made this $650M buyout work. “It's more about getting the basic, good unit economics so it can be broadly profitable in a proven market at a wide scale,” Nicault said. To put this deal in perspective, advisory firm Avolta reported that €5.3 billion was the total value of all exits by French tech companies in 2023. Ricard co-founded LumApps in 2012 with Lionel Grivel, Elie Mélois, and Olivier Chanoux. The final valuation resulted in big returns for investors such as Eurazeo, IRIS, Bpifrance, and Goldman Sachs. https://lnkd.in/eZKnP72X

Companies priorities before going public: 1. Customers 2. Employees 3. Execs/shareholders Companies focus after going public: 1. Shareholders 2. Shareholders 3. Shareholders Now I am sort of joking not saying this is only the case, but when it is it is so counter intuitive. Taking focus off the customers and staff that got you to your IPO typically ends in higher customer churn and higher employee turnover. This is bad for business as these will lead to lower profits and unhappy shareholders in a lot of cases. Do you agree with this? What are your experiences working in public companies? #IPO #Investment #StartUp #Sales

Mergers and Acquisitions have been top of mind lately. 😅 As it is for many investors, Crunchbase concisely explains in the article below. So how can a company properly prepare, and what can still happen after the merger? Pre-M&A and Post-M&A are critical moments where MTGS has experience taking the steps in to align teams, strategies, and goals. Here key topics to think about, 🤔 👩🏽🏫 I. Teams and Structure: Plan Ahead and Communicate: Transparent communication is key. Leaders must anticipate impacts on each team member and department, outlining roles, responsibilities, and new norms to ease apprehension. Outsider Perspective: Consider external resources for interviews. An impartial view fosters trust and understanding, aiding in the integration process. Cultural Alignment: Assess norms, beliefs, and cultures of both teams to chart a cohesive path forward. Choose a cultural agenda that combines, compromises, and unifies teams. ✔ II. Goals and KPIs: Establish Alignment: Founders and C-suite executives must define clear objectives and key results (OKRs) reflecting the M&A's purpose. Strategic KPIs: Define departmental KPIs aligned with company OKRs to ensure a clear roadmap for success. Agreed-upon Strategy: Prioritize alignment among the executive team to develop a cohesive strategy, fostering collective buy-in and execution. 🗂 III. Process, Workflow, and Communication: Source of Truth: Establish a central repository for project details, timelines, and responsibilities to foster clarity and accountability. CRM Integration: Agree on a unified CRM system to streamline communication and data management. Clear Communication Channels: Define protocols for team communication, meetings, and collaboration to ensure efficient execution without over-complication. Read more about M&A preparations below, #MergersAndAcquisitions #MTGS #TeamAlignment #OKRs #TechcrunchDisrupt https://lnkd.in/gp8cfKkg

Have you heard about talent heists? In their attempts to stay agile, some big companies acquire key teams from startups rather than whole companies. Startups and smaller businesses are breeding grounds for innovation, and larger companies use a talent heist to tap into this innovation. One way for SMBs to keep to talent is to offer desirable benefits. Partnering with a PEO like #Insperity unlocks access to big company benefits and helps you attract -- and retain -- top talent. #StartUps #TalentRetention #EmployeeBenefits https://lnkd.in/gMMepJYk

Have you heard about talent heists? In their attempts to stay agile, some big companies acquire key teams from startups rather than whole companies. Startups and smaller businesses are breeding grounds for innovation, and larger companies use a talent heist to tap into this innovation. One way for SMBs to keep to talent is to offer desirable benefits. Partnering with a PEO like #Insperity unlocks access to big company benefits and helps you attract -- and retain -- top talent. #StartUps #TalentRetention #EmployeeBenefits https://lnkd.in/gB_fkiDE

🌟 Prepping for an Exit: How Early Fundraising Impacts Acquisitions 🌟 Did you know your journey to a successful exit begins with your first funding round? Whether you're aiming for an acquisition, merger, or IPO, the way you structure and manage early-stage funding can significantly influence your long-term success. Here are some key takeaways for tech founders: 💡 Cap Table Matters: A clean and balanced cap table simplifies acquisition negotiations. 🤝 Strategic Investors: Choose backers who bring value beyond capital—think networks and industry expertise. 📊 Growth Story: Use early funds to build a compelling narrative through strong traction and market presence. 🔍 Financial Discipline: Early decisions on valuation and metrics lay the foundation for due diligence readiness. 📈 Brand Power: Invest in branding and partnerships to make your startup an acquisition magnet. At The Valley, we help founders align their fundraising strategies with long-term goals. From investor matchmaking to cap table management, our resources are designed to guide you every step of the way. 💬 What’s your top priority when planning for an eventual exit? Let’s discuss in the comments! read article: https://lnkd.in/eAfVi3bB #StartupFunding #AcquisitionStrategy #TechStartups #TheValley #GrowthMindset

Ofer Schreiber, Senior Partner at YL Ventures, discusses what’s driving the industry’s M&A activity with SC Media's Steve Zurier. “#Startups have nowhere to go but up, and they tend to do it quickly and will continue to attract #VCs. On the other hand, growth among Big Tech companies has slowed and they are looking for emerging categories to energize their business,” says Ofer. Continue reading Ofer's insights on the #M&A landscape, here >> https://hubs.la/Q02B-XJb0

Exit dreams and corporate reality: Untold challenges of Israeli tech acquisitions. "Despite challenges, Israeli startup acquisitions remain vital for driving global innovation and economic growth. Success requires proper preparation, cultural sensitivity, and strategic foresight," writes Itamar Tal, VP Engineering at Akamai Technologies and former VP Engineering at Guardicore. #Opinion