Current M&A Perspectives JEGI Media & Technology Conference: Transformational Growth through Innovation + Change Time Warner Center, January 14, 2016
JEGI Introduction 2
The Data & Marketing Tech Ice Cream Sandwich Amir Akhavan & Joseph Sanborn
Data Tech & Marketing Tech Converge Through Acquisitions Acquisitions Landscape Data Tech Data & Analytics for Massive Behavior Data & Marketing VIMS Marketing Closed-Loop Marketing Data & Intelligence Cloud Platform M&A Marketing Tech Marketing Cloud & Audience Platform & Marketing Tech & CRM, Marketing Tech Audience Manager Engagement Consumer Data & Intelligence 4
The Ice Cream – Sales Enablement Emerging Trends & Strategies Strategic Transactions Automation Analytics Collaboration • Convergence of CMO and CRO – taking place faster then expected • Highly-coordinated communication and multi-touch attribution Automation Analytics Data • Open data strategy across the organization Innovative Independents • Integrate technology stack 5
The Ice Cream - Payments and Loyalty Technology Giants Traditional Next Generation Payment Solutions Payment Leaders Moving into Payments Characteristics • Focus on the digital world; often • Designed for physical retail; now architected as “mobile first” adapting to mobile • Payments as a means to create • Goal of driving higher-value/ more “stickier” customer relationships transactions w/o need for cash • Emphasis on leveraging transaction • Loyalty initiatives shifting to aid data to drive ecosystem engagement merchant efforts • Transaction fees from payments • Revenue primarily driven by currently a fraction of revenues transaction fees • Offering lower fees in exchange for • Historically high fees for data/cross-selling opportunities merchants 6
The Ice Cream - Payments and Loyalty Strategic Transactions Emerging Trends & Strategies • In 2016, the battlefield for payments and loyalty will be centered around mobile • Payment companies will become the “ loyalty glue” between merchants and clients • A few of the larger tech companies will pull back from their new payment offerings Innovative Independents • More SMBs will offer compelling loyalty programs by leveraging mobile solutions • Brisk M&A apace, as both incumbents and new entrants look to capture an advantage 7
The Ice Cream - Personalization Strategic Transactions Emerging Trends & Strategies The One to One Relationship Ambient User Experience • Personal experience across all devices • Ongoing interaction, as users move through physical & virtual environments Innovative Independents Data Driven Engagement • Union of first-party and third-party data • Continual conversation informed by Location + Vertical + Persona + Behavior 8
Lessons from a Great Ice Cream Sandwich Maker “No single competency is enabling us to elevate the Starbucks brand more than our global leadership in mobile, digital and loyalty” – Howard Schultz • Commitment to a Data First Strategy – capture and analyze data to drive engagement and personalization • Completely reimagine the customer experience by leveraging the always-on/ubiquitous nature of mobile • Leverage data across all organizational functions, with multi-touch attribution and measurement 9
The Importance of Face-to-Face Scott Peters & Sam Barthelme
Face-to- Face “F2F”: Massive and Growing Market 1-3% of a corporation’s total revenue is spent on meetings • and events • Events are the largest portion of the $60 billion B2B marketing budget, accounting for 24% of spend ( $14 billion) Event spending is growing 6% per year, and after a company’s • website, is the most effective B2B marketing channel Event Management Software is a $6 billion market, expected • to grow at a 10% CAGR through 2019 11 Sources: Aberdeen Group, Forrester Research, Markets and Markets
Innovative F2F Models are Disrupting Markets Customer Marketing Employee Development Peer Engagement Brand Awareness Customer Acquisition Incentives Best Practices Customer Engagement F2F models align with each part of the F2F is the most effective means to sales funnel; link to CRMs to drive ROI engage & develop employees 12
JEGI: Leading M&A Advisor to F2F Companies Event Technology Leaders Innovative F2F Business Models More F2F Transactions Than Any Other Investment Bank
Technology Driving Value to F2F Ecosystem End-to-End Event Management Software Venue Event Event Event Sourcing Marketing Management Engagement Hospitality Event Execution Hotels Organizers; Exhibitors; Attendees Organizers Value To: Attendees 30% Overall Cost 20% 27% Savings ROI : Increase in Increase in Event Attendance Productivity 14 Source: Frost & Sullivan
Event Tech Addressing Two Massive Markets End-to-End Event Management Software Event Event Venue Event Sourcing Marketing Management Engagement $9 Billion Total Addressable Market $103B Meeting Spend on $27B Hotels Manual Processes and Software for Event Management $5B $4B Event Hotel Management Marketing Software 15 Source: Frost & Sullivan
Event Tech Intersects Massive Software Markets Marketing Tech Hospitality Event Tech Tech 16
Key Takeaways & Predictions F2F State of Play • Massive, important, and growing market • Crucial to customer marketing and employee development • Innovative models redefining markets and capturing share • F2F participants adopting technology at an increasing pace • Nascent $9B event tech TAM: $5B software + $4B hotel marketing JEGI Predictions • Large F2F providers acquire point solutions to expand end-to-end services • Private Equity firms acquire innovative F2F models, as platforms • Event technology companies receive increasing attention from VC/PE • Within 18 months, hospitality and marketing tech firms battle to acquire leading event technology providers, to own this important channel 17
Key Takeaways & Predictions • Within 18 months, hospitality and marketing tech firms battle to acquire leading event technology providers, to own this important channel Hospitality Tech Marketing Tech Consolidators $9bn Market Event Tech Targets 18
Global M&A Tolman Geffs & Paul Cooper
It’s Always Sunny Somewhere – The Virtues of a Geographically Balanced Business GDP Volatility 1997-2015 US EUR China 3.0% 2.0% 1.0% Change in GDP Growth 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% 20 Note LTM vs prior LTM change in GDP. Source: Trading Economics
Recent Cross-Continental M&A Transactions B2C & B2B Media Marketing Services & Tech Software & Tech-Enabled Services Business Info & Intelligence 21
Global Buyers Are More Active Than Ever North America Marketing B2C Media Europe Services Rest of World “REST OF WORLD” BUYERS EUROPEAN BUYERS Marketing B2B Media Technology NORTH AMERICAN BUYERS Premium Company Business Software Information Tech-Enabled Business 22 Services Intelligence
Global Buyers Are More Active Than Ever Representative Examples North America Europe Rest of World B2C Media B2B Media Premium Company Business Software Information Business Tech-Enabled 23 Intelligence Services
Global Buyers Are More Active Than Ever Marketing Representative Examples B2C Media Services North America Europe Rest of World B2B Marketing Media Technology Premium Company Software Business Information Tech Business Enabled Intelligence Services 24
Global Buyers Are More Active Than Ever Marketing B2C Media Services Representative Examples North America Europe Rest of World B2B Marketing Media Technology Premium Company Business Software Information Business Tech-Enabled Intelligence Services 25
Global Buyers Are More Active Than Ever Marketing B2C Media Services B2B Marketing Media Technology Premium Company Software Business Representative Examples Information North America Europe Rest of World Tech Business Enabled 26 Intelligence Services
Global Buyers Are More Active Than Ever … and Premium Assets will Attract 360 o Interest … Marketing Representative Examples B2C Media North America Services Europe Rest of World Marketing B2B Media Technology Premium Company Business Software Information Tech-Enabled Business 27 Services Intelligence
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