Potential value creation opportunities in 2020 across: Technology, Information and Events

AMR International sees a range of attractive potential opportunities in 2020 across our focus areas: Technology, Information and Events.

Technology

  • Cybersecurity has sustained, structural growth. AMR has supported Exclusive Group from small business to unicorn. We see more following in its footsteps as the market continues to sub-segment and evolve
  • The Software channel is evolving to support Cloud developments across the value chain, led by fast-growing, disruptive players. We also see continuing opportunities across function- specific software solutions e.g. supply chain, HR and Marketing
  • B2B and B2C e-commerce are both well established. We expect to see a continuing stream across a range of niche markets. Equally post series A/B B2B marketplaces are now emerging. Future exits could mirror B2C success stories
  • Niche smart industrials continue to offer 20%+ margin opportunities that can be enhanced based on AMR’s sources of value framework

Information

  • Governance, risk, and compliance (GRC) has fundamental growth as businesses adopt tech-enabled solutions to enable efficient, cross-organization solutions, replacing manual processes.  Credit risk will be of particular importance
  • Ag and AgTech will continue to see growth with digitization, new technologies and big data create opportunities at either end of the value chain with slower adoption by farmers
  • Supply chain and vendor management, food traceability and data privacy are seeing strong uptake of tech-based solutions (e.g. AI, IoT)
  • With the connected car as an ultimate IoT, we expect to see opportunities across the Auto value chain
  • Opportunities will continue in insurance across the continuum with alternative data and tools to better price risk and address fraud

Events

  • Despite current turmoil due to the coronavirus pandemic, the Events industry remains structurally attractive for investors
  • With multiples for tradeshow organisers starting to soften from all-time highs, the focus is on value creation. AMR’s Exhibitions 2.0 shows the potential for margin uplifts of up to 15%
  • Less aggressive multiples can secure tier-two organisers, conferences and one-to-one meetings. All continue to enjoy many of the sector’s strong fundamentals. Strong players can lead roll-ups
  • Experiential is often overlooked; we expect to see scaled platforms come to market, highlighting the opportunity
  • The fragmented Events services market will yield opportunities. Some see it as attractive with few scaled players, and diverse margins, service types and management quality
  • For further details request a copy of AMR’s introductory deck: The global events model – attractive investment opportunities

Advanced Analytics: We also expect to see more sophisticated value creation particularly through advanced analytics and predictive analytics. AMR’s survey of mid-market funds shows this to be an almost universally underused tool.

For further information, please contact:
Denzil Rankine, Executive Chairman
Florent Jarry, Partner and Head of Global Events Practice
Adam Wendelboe, Partner and Head of Analytics