The Twitter Business Model 

Twitter was recently valued at $8 billion by a smart group of investors. So how exactly does Twitter make money?

November 17th, 2011

Will Facebook IPO in 2012? discusses valuation and strategy. Facebook is expected to own 72% of all social network advertising revenues and 6.1% of worldwide online ad spending in 2012.

November 16th, 2011

Crowdsourcing is Heating Up! A Lot! 

There has been a spate of investment activity in the crowdsourcing space over the last couple of years. This is a core focus for Capital Mergers. Several funds including Google Ventures, Bessemer, DFJ, Accel and Trinity have been active and we expect activity to intensify this year.

November 15th, 2011

2010 Private Equity Status Check 

Over $80 billion of capital overhang from venture capital funds raised by US investors with most VC overhang from 2007 to 2009 vintage funds.

November 23rd, 2010

Mobile Consumer Electronics Industry: Mergers & Acquisitions 

The mobile consumer electronic accessory market is comprised of vendors providing accessories and select applications to multi-functional mobile devices, such as the iPad, iPhone, Blackberry and similar devices. We divide the mobile consumer electronic accessory market into two primary segments: Accessories: Speakers, cases, batteries, chargers, FM transmitters etc. In general hardware devices and gear that provide incremental utility when used with a mobile device. Applications: Select games, news, entertainment, communication and productivity applications. We focus on applications that could “exist “as “appliances” or “single purpose computers.”

November 17th, 2010

Field Services Management (Technology Enabled Services) : Mergers & Acquisitions and Financings 

The FSM market is comprised of vendors providing solutions to optimize processes, information and relationships needed by companies with large mobile and/or contingent /contract workforces. In addition to the market share, synergy and financial benefits of consolidation, a significant opportunity exists for acquirers to add critical product functionality to create a well-rounded field services platform. We feel the main technology platforms for consolidation include customer relationship management (CRM), parts management, mobile enterprise applications, dispatching/workforce management, and analytics and intelligence.

October 13th, 2010

Using Acquisitions to Reinvent Advertising Agencies 

Given the speed of change in the “Adaptive Marketing” era of marketing and the plethora of tools that will be required to deliver competitive advantage to customers, nimble acquisitions are and will remain inevitable if an advertising agency wishes to remain a fiduciary of its clients advertising budgets.

October 6th, 2010

Field Services Platforms: Consolidation is Inevitable and Big Market Success Stories are Imminent 

Acquisition opportunities abound in the industry. The big strategic M&A opportunity for vendors is customer consolidation; multiple field services management (FSM) vendors sell complementary offerings to different customers, presenting significant opportunities to cross-sell into existing accounts through alliance and consolidation. Another significant opportunity exists for acquirers to add critical product functionality. We agree with Gartner’s thesis that best-of-breed vendors are more likely to buy rather than build field service workforce optimization capabilities and stronger mobile platforms.

July 15th, 2010

Winners and Losers in the Apple Ecosystem – Applications, Accessories and Appliances. 

Apple is chipping away at the market share of consumer electronic \”appliances\” (devices that perform a single function such as a GPS unit, a TV, a digital camera, or an MP3 player) through the development of innovative functionality that enhances their iPhone and iPad?

July 6th, 2010

The Evolution of Multi-Functional Mobile Devices Makes Software as a Service Mobile Applications More Important for Field Service Management Vendors to Implement 

The recent releases of Apple?s devices (iPad and iPhone 4) and the anticipated releases of other similar devices (see table below) indicate that mobile devices will continue to adopt more highly-complex functions, both inherently through installed features and through the vast mobile application market?

June 23rd, 2010

MMC Sells Kroll for $1.13 billion to security solutions firm Altegrity 

Marsh & McLennan Companies announced yesterday the sale of its risk consulting subsidiary, Kroll, to global security solutions firm Altegrity. The purchase price of $1.13 billion cash values Kroll at approximately 1.7x 2009 sales and between 8x and 10x normalized 2009 EBITDA (assuming an EBITDA margin between 17-21%)

June 8th, 2010

Icahn Gearing Up To Pressure a Lawson Takeover? 

Shares of St.Paul, Minnesota based Lawson Software climbed 7.6% Monday on high volume after billionaire activist investor Carl Icahn disclosed an 8.5% stake in the enterprise software developer?

May 26th, 2010

Consolidation in the E-Discovery Service Market?A Good Time to Buy And Sell? 

In this report, we take a closer look at the idea of consolidation in the e-discovery service sector and examine the market trends which could ultimately accelerate the M&A process?

May 24th, 2010

The Wisdom Of Crowds and The Wisdom of Web-Based Marketplaces And Field Services Management Platforms 

Here at Capital Mergers and Acquisitions, we are proponents of the central thesis of James Surowiecki?s book, ?The Wisdom of Crowds?, which in short, states that the aggregation of information in groups results in decisions and outcomes that are often better than could have been made by any single member of the group?

April 30th, 2010

On-Demand Labor Models and Online Marketplaces 

As the economic crisis continues, enterprises, retailers, and small-businesses are looking for solutions that enable them to stay competitive, yet flexible in terms of cost structure and human capital investment?

March 27th, 2009

More On Unified Communications 

Perhaps the need for cost efficiencies, combined with the plummeting economy, has forced enterprises to rethink how they utilize their communications platforms to improve overall productivity within their organizations, and ultimately add to their bottom line?

March 5th, 2009