NEW YORK and SAN FRANCISCO, January 25, 2021 /PRNewswire/ — Union Square Advisors, a technology-focused investment bank, today announced the release of its 2021 Outlook Report: A period of transition.
Union Square Advisors predicts that 2021 will be a strong and successful year for closing technology deals, given the industry’s proven resilience and adaptability to the economic and social disruptions of 2020, and the deployment of COVID-19 vaccines. 19 will fuel an economic resurgence on a scale not seen since the end of World War II and further strengthen the outlook for business activity.
In addition to the general industry outlook of the company, the report discusses the following trends in technology, capital markets and financing:
- Technological mergers and acquisitions: the return that will continue: Building on the momentum of technology mergers and acquisitions at the end of 2020, which saw a 29% increase in dollar volume year-over-year compared to 2019, Union Square Advisors estimates that the sector will continue to see strong activity in 2021. Barring significant geopolitical or macroeconomic setbacks, the global deployment of COVID-19 vaccines, coupled with additional economic stimulus and infrastructure spending, will pave the way for recovery economy, while accelerating mergers and acquisitions and financing activities, particularly in the area of technology.
- The wave of digital transformation continues to disrupt: Traditionally “sleeping” middle and back office functions have been slower to embrace digital transformation, but, due to the pandemic, this is no longer the case. Union Square Advisors believes that areas such as accounting, payments, source-to-pay and risk management will continue to be hot segments within broader enterprise software, as evidenced by valuation multiples. listed entities and acquisitions.
- Accelerating the adoption of intelligence engagement: Changing demographics and new work-from-home routines will continue to alter the way businesses interact with their customers and employees in 2021 and beyond. Union Square Advisors predicts that integrating smart software capabilities that help improve how businesses connect with these key stakeholders, or embracing “platforming” the entire customer experience, will be key. to maintain a competitive edge for years to come.
- AdTech: an evolving ecosystem: The pandemic has shed light on just how fluid consumers’ days can be – roaming between platforms, programs and devices, all from home – and Union Square Advisors believe this shift in behavior will ripple through in 2021. The company anticipates that advertisers and agencies will continue to use cutting-edge artificial intelligence tools to deliver more relevant advertising content – not only in display, but also in native and video formats.
- Adopt cloud-native architecture: DevOps is now synonymous with agile software development, and the focus is now on integrating security even earlier in the development process. As security is more deeply integrated into the “Dev” part of DevOps, Union Square Advisors sees AI technologies becoming essential to the proper functioning of “Ops”. AI capabilities will be essential to manage what would otherwise be overwhelming amounts of recorded data.
- Recurring income loans: from subscription to growth: Union Square Advisors believes that recurring revenue lending will continue to be an attractive facet of debt markets in 2021 as lenders continue to value reliable, scalable, and on-demand SaaS business models more. Private equity firms continue to see the appeal of SaaS platforms, emphasizing that the allure of investing in these companies is not the price, but the growth market – making money from the operational excellence in relation to the application of leverage is the game today.
- Pandemic revelations for capital providers: The year 2020 has led investors to make many “pandemic revelations”, such as the need to reassess portfolio strategy as well as the quality of management and capital structure, which Union Square Advisors believe will influence the M&A activity for capital providers this year and beyond. .
“At the start of the pandemic, most tech companies and their capital providers took quick action to prepare for the worst, which ultimately paid off,” said Carter McClelland, President and Co-Founder, Union Square Advisors. “While we recognize that other parts of the economy have not been so fortunate, we are confident that technology will provide the tools to guide us all through this period of transition and eventually into a robust economic recovery.”
Ted SmithChairman and Co-Founder, said, “The technology industry stands to gain from the forces that will rebuild the global economy. It has never been more important for technology companies to understand and utilize the breadth of capital and strategic tools available to At Union Square Advisors, we look forward to a very active and positive 2021 – and with even greater meaning and excitement for our existing and potential clients.”
For the full report, visit http://www.usadvisors.com/wp-content/uploads/2021/01/USA_Outlook2021.FA2_.pdf.
About Union Square Advisors
Union Square Advisors is a leading technology-driven investment bank that helps clients pursue and execute their most important strategic transactions. Our team includes former heads of the world’s leading technology investment banking practices, as well as seasoned professionals with deep experience in providing high-quality advice to boards and management teams in multiple areas. . We specialize in strategic relationships and corporate development, mergers and acquisitions, buyouts, restructurings, special situations, public and private capital raisings, capital structure optimization, liability management and other capital market transactions. With extremely deep industry knowledge and strong relationships across the technology ecosystem, our business is focused on advising leading companies and pools of capital in the enterprise technology space. Since our creation in 2007, we have advised 125 transactions, with a total transaction value exceeding $105 billion. For more information, please visit www.usadvisors.com.
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SOURCE Union Square Advisors