M&A – our review of 2016

We’re pleased to say that 2016 was a strong year for Admincontrol, with 43 % increase in total sales for Virtual Data Rooms compared to 2015. And while we are excited to see a good start for 2017 and have ambitions to continue our solid growth in the year to come, we are not ready to let 2016 go just yet. We’ve looked at our data from the past year, which reflects the following trends:

1: Tech is hotter than ever before

During 2016 we saw Energy, Real Estate and Telecom as particularly active M&A industries across Northern Europe. In addition, we clearly noticed Tech on the rise. Both in the sense that tech companies (start-ups and established businesses alike) where attractive targets, and that due diligence related to the technology property of a company (tech-due diligence) gained much more relevance. Especially, related to investigations of the potential “Tech Debts” of potential acquisition targets.

 

2: Pre-due diligence is becoming more relevant

Another trend we saw in 2016, was that the sell side typically was starting the due diligence process earlier than before. It seems like incorporating potential future changes of ownership in strategy processes and business plans at an earlier stage is becoming increasingly common. Admincontrol also saw an increase in requests for data rooms for pre-due diligence purposes. We have also noticed that but-out funds now often maintain the data room form acquisition throughout the whole holding period to be exit ready at any time.

Control of all relevant documents is a sound basis for due diligence. Download our Due Diligence Checklist.

3:  M&A growth continues

Most European M&A markets experienced an increase in deal volumes in 2016, with a total of 3% increase in volume from 6927 to 7146 year-on-year according to Mergermarket. Northern Europe was up 10%.

As deal volumes are peaking around end of December and June, Virtual Data Rooms are often established a few months ahead. Admincontrol continued the strong growth in Virtual Data Rooms sales, with 43% growth in 2016, and 31% increase in new data rooms in Q4 (YoY). Activity indicators suggests that Northern Europe could see an increase in deal volumes in the first few months of 2017.

Admincontrol has responded to the increase in demand for Virtual Data Rooms by adding additional field representatives in the various local markets as well as a further ramp up in product development.

 

What’s in store for 2017?

We expect the growth to continue, and to see increases in both deal activity and deal size in 2017.

On our part, we will continue to expand our market reach in the coming year. Our solution is also getting a facelift, a great redesign is just around the corner and we have got lots of nice things on the product roadmap for 2017.