In this week’s 733Park Check-In, we hear from our Founder and Manager Director, Lane Gordon. After building an impressive 20-year career in investment banking advising clients, Lane shares essential advice he tells his clients to continuously create value for their company. Also, after experiencing the shift himself, Lane fills us in on trends in tech acquisitions.
Lane Gordon – Founder and Manager Director of 733Park
Preparing for the Future
How is your company preparing for the future? An answer to this question may be that your company is constantly innovating and adding the latest technologies into its operations, or the software systems your company uses continuously get updated and improved. These early preparations may be the reason your company survived the pandemic. Another way your company should be preparing for the future and repeatedly create value is by forming a “stickiness” with your customers.
Essential 1-On-1 Client Advise: “Stickiness”
Lane mentions that depending on the firm, he'll advise his clients to find ways to integrate themselves with their customers’ purchasing habits. This is done when your customers have to make a routine purchase of the product or service you offer, like a subscription service. "If your customers are paying a monthly SaaS fee, or if they're processing their payments through you, they'll be with you for a long time because they're routinely using your processes or services."
Offering a product or service that ties in with your customers' operations, benefits the customer and your company. This also allows you to become an integral part of your customers' business practices and become an essential factor for their success. As a result, you're creating long-term relationships with your customers by routinely providing excellent service because they simply don't want to leave or change.
Trends in Tech Acquisitions
With the rise of mergers and acquisitions during the pandemic, it's clear companies want opportunities to add value and diversify their operations. Specifically, there's been a desire for technology-based acquisitions because of the impressive valuations larger tech companies receive. As a result, Lane has seen companies who wouldn't usually be into tech acquisitions enter the market due to the potential path to a major upside if they develop their tech investments. Typical non-tech buyers are seeking small tech acquisitions to add other additional investments to, while still applying their expertise. Lane said this trend is most beneficial to sellers because they have a greater number of quality options, which drives up bidder prices.
733Park is a boutique M&A firm specializing in payments, fintech and SaaS mergers and acquisitions, deal sourcing, and advisory services.
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