Create Company Value and Trends in Tech Acquisitions

733Park Check-In: Creating company value and trends in tech acquisitions

In this week's 733Park Check-In, we hear from our Founder and Managing Director, Lane Gordon. After building a 20-year career in investment banking advising clients, Lane shares essential advice he tells his clients to continuously create value for their company, and fills us in on trends in tech acquisitions.

Preparing for the future

How is your company preparing for the future? Constantly innovating and adding the latest technologies, or continuously updating your software systems, may be the reason your company survived the pandemic. Another way to prepare and repeatedly create value is by forming a "stickiness" with your customers.

Essential 1-on-1 client advice: "stickiness"

Lane advises clients to find ways to integrate themselves with their customers' purchasing habits, such as a routine or subscription purchase. "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 customers' operations benefits both parties and makes you an integral part of their business, creating long-term relationships because they simply don't want to leave.

Trends in tech acquisitions

With the rise of mergers and acquisitions during the pandemic, companies clearly want opportunities to add value and diversify operations. There has been a desire for technology-based acquisitions because of the impressive valuations larger tech companies receive. Lane has seen companies that wouldn't usually pursue tech acquisitions enter the market due to the potential upside. Typical non-tech buyers are seeking small tech acquisitions 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.