Challenges and opportunities in M&A and Investments in Technology
With the volume of technology investments slowing this year and next, more selective investors still expect high returns on their investment targets. The question is, when investing, what will make the difference and guarantee the expected return?
That was the center of the discussion at the event held by Avalia Systems in the official residence of the Consul General of Switzerland in Brazil, in partnership with Swissnex in Brazil, on August 9, 2022, in São Paulo.
With the presence of Senior Research Professor at Insper, Dr. Andrea Minardi, the Consul General of Switzerland in Brazil, Pierre Hagmann and Rodney Reis, CEO and Founder of Avalia Systems, and industry-leading guests, it was possible to discuss the challenges and opportunities in 2022/2023 M&A and investments, and best practices for investing in this market scenario. Here are some highlights from that discussion:
While we were sailing in the context of “high tide” in M&A and investments in technology, companies benefited from the abundance of capital, privileging accelerated growth to the detriment of financial sustainability. The strategy used to be choosing an overheated sector and “surfing the wave,” as it happened with Fintechs, Insurtechs, Edtechs, and Healthtechs, among others.
However, the macroeconomic scenario has changed, the volume of investments has dropped, and as a consequence, investors have become more selective. The expected return, however, remains the same. With the "low tide", greater diligence became necessary with each "boat", that is, each investment target, analyzing more than marketing and sales variables, investigating the infrastructure and operations as well, responsible for the performance of the business, which also involves technology. It is necessary to understand not only the sail of the “boat”, but its engine, how it works, and how to make it more efficient.
Executive directors, CEOs, and specialists in Investments and M&A from different sectors and companies in Brazil, such as banking, insurance, and technology, were present. And at the end, networking was accompanied by appetizers and wines from Switzerland.
Professor at Insper
“It was a pleasure to lead the "M&A and Investments in Technology" panel organized by Avalia and Swissnex at the home of Pierre Hagmann, Consul General of Switzerland. The different views and opinions about the prospects for the innovation market in this turbulent time provided a constructive and enriching debate”.
Check out some photos from the event:
Connecting the dots between business and technology is crucial to validating an investment thesis, regardless of industry. Thus, an efficient due diligence must answer questions such as:
Can technology scale?
How efficient is software development? Are there quick wins?
What is the 100-day plan for technology?
Avalia Systems answers these and other questions with Software Due Diligence, which uses the power of data and expert analysis to obtain a clear view of technology, its risks and opportunities, clarifying the impact of technology on business and how to generate value long-term.
What does Avalia deliver?
Data-driven transaction advice, support and framework to maximize success in closing technology deals and an action plan to scale post-deal growth.
For business leaders:
Factual information critically analyzed in relation to best market practices and trends, guiding decision-making, and optimizing business objectives.
For technology leaders:
Trusted consultants with decades of hands-on experience and technical expertise needed to execute, support decision-making, and deliver lasting impact.
Are you preparing for your next M&A or technology investment? Schedule a conversation with our experts.