Acquisition International Shares Stephen Day’s, Co Founder and Managing Principal at Navidar, Thoughts on the Q4 2014
Navidar | January 15, 2015
Stephen Day, Co-Founder and Managing Principal at Navidar, the investment banking firm focused on technology and technology-enabled businesses, gives us his thoughts on the fourth quarter of 2014.
Navidar is an investment banking firm focused on technology and technology-enabled businesses. The fastest growing technology M&A advisory firm located in and focused on the middle corridor of the United States, Navidar is the preferred trusted advisor to middle market companies who seek the M&A advisory expertise and global reach of an international firm but value the daily involvement of a senior banker. Navidar’s focus on putting client interests first and track record of negotiating outlier results has created a highly referenceable client base.
As we approach the end of 2014, the global economy is starting to show definite signs of improvement. In the United States, this is particularly evident in the nation’s middle corridor technology sector – cities like Austin, Denver and Minneapolis, which have thriving start-up communities and strong angel networks to fund these businesses, says Stephen Day, Co-Founder and Managing Principal at Navidar. “The key drivers of this growth also extend beyond the presence of creative entrepreneurs and angel networks. Many of the largest companies in Silicon Valley are moving substantial operations to these regions in order to access new talent pools, seek lower cost of operations, and improve the life styles of their employees.”
Navidar experienced significant growth in 2014, says Day, enjoying its highest revenue year since the founding of the firm in 2009. “Furthermore, the pipeline is very strong for 2015. Valuations in both the private and public markets are very robust at this time, which makes it an excellent time to sale a business if you are an entrepreneur. Therefore, it is important that the US and global economies continue to expand in order to support continued growth in the technology sector.”
Deal appetite remains strong among the publicly traded technology companies, Day says, noting that, while they may pass on a deal from time to time due to valuation levels, overall they remain very active in assessing and pursuing targets.
During the latter part of 2014, Navidar has executed many cross-border deals, says Day. “And so from that experience base we see an increase in government regulatory oversight as it relates to both security and maintaining competitive market places (i.e. protecting one’s own companies). Navigating regulatory bodies around the globe has to be a core competence if you want to successfully close transactions.”
Moving into 2015, Day expects to see a strong M&A and capital markets environment, particularly in the US. “As the technology sector has matured, the larger companies need a constant funnel of creative, next generation technology targets to fuel top-line revenue growth. We expect international companies to continue their interest in looking towards the US for targets.”