Current M&A Perspectives JEGI Media & Technology Conference: - - PowerPoint PPT Presentation

Current M&A Perspectives

JEGI Media & Technology Conference: Transformational Growth through Innovation + Change Time Warner Center, January 14, 2016

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JEGI Introduction

The Data & Marketing Tech Ice Cream Sandwich

Amir Akhavan & Joseph Sanborn

Data Tech & Marketing Tech Converge Through Acquisitions

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Acquisitions Landscape

M&A Data Tech Marketing Tech

Data & Analytics for Closed-Loop Marketing VIMS Marketing Platform Data & Marketing Cloud Massive Behavior Data & Intelligence CRM, Marketing Tech & Intelligence Marketing Cloud & Audience Manager Audience Platform & Engagement Marketing Tech & Consumer Data

The Ice Cream – Sales Enablement

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Strategic Transactions Innovative Independents Emerging Trends & Strategies

• Convergence of CMO and CRO –

taking place faster then expected

• Highly-coordinated communication

and multi-touch attribution

• Open data strategy across the
• rganization
• Integrate technology stack

Collaboration Automation Analytics Automation Analytics Data

The Ice Cream - Payments and Loyalty

• Designed for physical retail; now

adapting to mobile

• Goal of driving higher-value/ more

transactions w/o need for cash

• Loyalty initiatives shifting to aid

merchant efforts

• Revenue primarily driven by

transaction fees

• Historically high fees for

merchants

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Traditional Payment Leaders Next Generation Payment Solutions Technology Giants Moving into Payments

• Focus on the digital world; often

architected as “mobile first”

• Payments as a means to create

“stickier” customer relationships

• Emphasis on leveraging transaction

data to drive ecosystem engagement

• Transaction fees from payments

currently a fraction of revenues

• Offering lower fees in exchange for

data/cross-selling opportunities

Characteristics

The Ice Cream - Payments and Loyalty

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

• 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

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Strategic Transactions Innovative Independents

The Ice Cream - Personalization

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

Data Driven Engagement

• Union of first-party and third-party data
• Continual conversation informed by

Location + Vertical + Persona + Behavior

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Strategic Transactions Innovative Independents

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Lessons from a Great Ice Cream Sandwich Maker

• 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 “No single competency is enabling us to elevate the Starbucks brand more than our global leadership in mobile, digital and loyalty” – Howard Schultz

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

Sources: Aberdeen Group, Forrester Research, Markets and Markets

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Innovative F2F Models are Disrupting Markets

F2F models align with each part of the sales funnel; link to CRMs to drive ROI F2F is the most effective means to engage & develop employees

Customer Marketing Employee Development

Peer Engagement Incentives Best Practices Brand Awareness Customer Acquisition Customer Engagement

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JEGI: Leading M&A Advisor to F2F Companies

More F2F Transactions Than Any Other Investment Bank Innovative F2F Business Models Event Technology Leaders

Technology Driving Value to F2F Ecosystem

Venue Sourcing Event Marketing Event

Management

Event Engagement

End-to-End Event Management Software

Value To: ROI: 30% Overall Cost Savings 20% Increase in Event Attendance 27% Increase in Productivity Hotels Organizers Attendees Organizers; Exhibitors; Attendees

Source: Frost & Sullivan

Event Execution Hospitality

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Event Tech Addressing Two Massive Markets

Venue Sourcing Event Marketing Event

Management

Event Engagement

End-to-End Event Management Software

Source: Frost & Sullivan

$9 Billion Total Addressable Market

$4B

Hotel Marketing

$103B

Meeting Spend on Hotels

$5B

Event Management Software

$27B

Manual Processes and Software for Event Management

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Event Tech Intersects Massive Software Markets

Marketing Tech Event Tech Hospitality Tech

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Key Takeaways & Predictions

• 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
• 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

JEGI Predictions F2F State of Play

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Key Takeaways & Predictions

Consolidators Event Tech Targets

$9bn Market Marketing Tech Hospitality Tech

• Within 18 months, hospitality and marketing tech firms battle to acquire leading

event technology providers, to own this important channel

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Global M&A

Tolman Geffs & Paul Cooper

It’s Always Sunny Somewhere – The Virtues of a Geographically Balanced Business

• 5.0%
• 4.0%
• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0%

Change in GDP Growth

Note LTM vs prior LTM change in GDP. Source: Trading Economics

GDP Volatility 1997-2015

US EUR China

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Recent Cross-Continental M&A Transactions

B2C & B2B Media Marketing Services & Tech Software & Tech-Enabled Services Business Info & Intelligence

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North America Rest of World Europe

B2B Media Marketing Technology Marketing Services B2C Media Business Information Tech-Enabled Services Business Intelligence Software

Global Buyers Are More Active Than Ever

Premium Company NORTH AMERICAN BUYERS EUROPEAN BUYERS “REST OF WORLD” BUYERS

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Global Buyers Are More Active Than Ever

Business Information B2B Media B2C Media Tech-Enabled Services Business Intelligence Software

Premium Company

Representative Examples North America Rest of World Europe

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Global Buyers Are More Active Than Ever

Business Information B2B Media B2C Media Tech Enabled Services Business Intelligence Software

Premium Company

Marketing Technology Marketing Services

Representative Examples North America Rest of World Europe

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Global Buyers Are More Active Than Ever

Business Information B2B Media B2C Media Tech-Enabled Services Business Intelligence Software

Premium Company

Marketing Technology Marketing Services

Representative Examples North America Rest of World Europe

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Global Buyers Are More Active Than Ever

Business Information B2B Media B2C Media Tech Enabled Services Business Intelligence Software

Premium Company

Marketing Technology Marketing Services

Representative Examples North America Rest of World Europe

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B2B Media Marketing Technology Marketing Services B2C Media Business Information Tech-Enabled Services Business Intelligence Software

Premium Company

Global Buyers Are More Active Than Ever

Representative Examples North America Rest of World Europe

and Premium Assets will Attract 360o Interest … …

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