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All posts by Rhys Whiting

Clare Capital advises the NZX on the sale of its business unit to Zenith Investment Partners

Clare Capital is pleased to announce the sale of NZX’s FundSource business unit to Zenith Investment Partners. Clare Capital advised NZX to the successful transaction.

The full announcement can be found here.

Clare Capital Technology Insight Reports

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 rhys.whiting@clarecapital.co.nz

As always, questions, comments and new subscribers are all welcome.

Clare Capital advises ProActive Software on its sale to ELI Global

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 advises Computer Power Plus on its sale to Whitecliffe Enterprises

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 advises Touchtech on its merger with Springload

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 advises COMSMART on its sale to Fortlock Holdings

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

Clare Capital in the Media

National Business Review – 28th May 2018 – https://www.nbr.co.nz/article/nzx-asx-technology-companies-equally-dismal-boardroom-diversity-ck-216016

National Business Review – 7th May 2018 – https://www.nbr.co.nz/article/xero-shares-close-all-time-high-ck-p-215345

Television New Zealand – 17th November 2017 – https://www.tvnz.co.nz/one-news/business/its-profit-hes-created-rod-drury-cash-in-xero-shares-netting-almost-95-million

National Business Review – 14th November 2017 – https://www.nbr.co.nz/article/xero-shares-plunge-after-fnzc-downgrade-ck-209937

National Business Review – 10th November 2017 – https://www.nbr.co.nz/article/bulk-xero-liquidity-nzx-data-show-th-p-209784

Australian Business Insider – 13th September 2017 – https://www.businessinsider.com.au/xero-growth-story-2017-9

National Business Review – 14th August 2017 – https://www.nbr.co.nz/article/asx-no-green-pasture-nzs-young-companies-cs-p-206393

Australian Business Insider – 8th August 2017 – https://www.businessinsider.com.au/16-australian-tech-companies-that-spend-more-on-staff-than-their-revenue-2017-8

National Business Review – 2nd August 2017 – https://www.nbr.co.nz/article/which-nzx-tech-companies-are-most-and-least-efficient-their-staff-cg-p-205960

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Tech Updates – Complete Series #1-17

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:

  1. SaaS Revenue per Employee;
  2. Remuneration vs Performance;
  3. Capital Used vs Recurring Revenue;
  4. Cash Burn & Runway; and
  5. 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.

The what and why Of EBIT and EBITDA

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.

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What is a share price

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.

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