Clare Capital produces a free, weekly two-page, graphic-heavy technology insights report on a range of topics from acqusitions to metrics to multiples.
See attached some previous examples of our weekly technology insight reports:
If you would like to be added the distribution list. Email Rhys Whiting at email@example.com
As always, questions, comments and new subscribers are all welcome.
Clare Capital advised Software-as-a-Service (SaaS) business ProActive Software on its sale to ELI Global.
ProWorkflow, the product behind ProActive Software, is a fully featured project management, workflow and time management tool, supplied as a SaaS solution.
Clare Capital advised IT tertiary provider Computer Power Plus (a joint venture between Whitireia NZ and WelTec) on its sale to Whitecliffe Enterprises.
Computer Power Plus is a specialist IT training institute that provides a wide of range of NZQA approved IT programmes from Certificate to Advanced Diploma level.
A copy of the Press Release can be found here: https://www.whitecliffe.ac.nz/news/computerpowerplus/.
Clare Capital is pleased to announce it advised Touchtech on its merger with Springload.
Touchtech is a product design and engineering studio building web and mobile applications. Springload creates websites and apps that improve businesses and people’s lives. The combined business is now the largest independently owned digital agency in Wellington, with 70 staff.
A copy of the Press Release can be found here: https://touchtechlabs.com/insights/touchtech-springload-merger/
Clare Capital is pleased to announce it advised COMSMART on its sale to Fortlock Holdings.
COMSMART is an IT services company based in Wellington (NZ). It services include:
- Consulting – business and data analysis, performance monitoring, roadmap planning.
- Professional Services – design, architecture, project management, implementations, site audits and project work.
- Managed Services – maintenance and support through Service Level Agreements and T&M based Service Desk support.
- Product Sales – hardware and software sales to regular customers as well as the general public.
- Recruitment – sourcing the right people for customer’s internal IT resource requirements.
This is the fifth deal Clare Capital has completed in the last twelve months.
A copy of the Press Release can be found here: http://www.scoop.co.nz/stories/BU1711/S00884/fortlock-group-acquires-comsmart.htm
Since July, Clare Capital has been producing a weekly, two-page Tech Update incorporating different charts and listed company analysis for our distribution list. The Updates have included:
- SaaS Revenue per Employee;
- Remuneration vs Performance;
- Capital Used vs Recurring Revenue;
- Cash Burn & Runway; and
- The 40% Rule (which was highlighted by Michael O’Donnell in an October Stuff article).
On the back of the first FounderCon, which Clare Capital sponsored, we have released the Complete Series of Tech Updates #1-17 [this link takes you to the full report] on our Blog and on the ShowGizmo app.
Please feel free to download and share around with anyone who you think would find it useful.
Contact us if you would like to be on the distribution list.
One of the common questions we get asked is why does the term EBIT or EBITDA get used so frequently in valuation work?
EBIT stands for Earnings Before Interest and Taxes (EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortisation).
EBIT is sales less expenses (including depreciation) adding back any interest paid and subtracting any interest received. The only change to EBITDA is that depreciation and amortisation are added back.
If you ask the simple question of “what is a share price?” – many people struggle to answer. People will have an opinion on whether the share price of Telecom or Air NZ is too low or too high – but they can’t answer the simple question of “why?”. I usually get an answer about assets – but nothing very specific.
So how does (or should) an investment banker think about the value of a business?
I am going to use a minimum of jargon here – I promise. Please see the glossary page for some definitions of valuation terminology, why various terms are used and more information about the valuation methodology.
We are going to cover valuation techniques in a separate post – but here is the Valuation 101 of how investment bankers determine if a share is currently undervalued or overvalued. We use a piece of financial economics called a discounted cash flow (DCF) model. This is a key part of corporate finance. Now value does not always equal price – but as the Benjamin Graham quote goes, “In the short-term, the market is a voting machine and in the long-term a weighing machine”.
The DCF is the primary method in corporate finance theory for calculating value. In corporate finance – value is a DCF…