Sector 07
Adtech and marketing technology
Adtech and martech businesses, from software products to technology enabled services, are valued on different terms from agencies: recurring revenue, retention, gross margin and the ownership of the product. We advise founders raising growth capital or selling, and investors and acquirers assessing technology businesses in the marketing market.
- Business types
- Adtech platforms and connected TV technology, marketing technology products, data and measurement platforms, technology enabled service businesses, AI first marketing tools and agencies building their own products.
Business models
Product, service or both
The first question any investor or buyer asks is how much of the revenue is product and how much is people.
- Software and platform revenue. Subscription and usage-based revenue is valued on growth, retention, gross margin and the efficiency of acquiring customers. Clear reporting of these metrics is expected.
- Technology-enabled services. Services delivered with proprietary tools earn a premium over pure services, provided the technology changes the economics and is owned.
- Hybrid agencies. Agencies that have built products alongside client work can be valued on two bases at once. Separating the revenue, cost and team of each is the work before any process.
- AI first propositions. Businesses rebuilding their offer around AI attract strong interest and sharp diligence on what is proprietary, what is defensible and what the margin really is.
Issues founders and buyers consider
Which metrics to lead with
Recurring revenue, net revenue retention, gross margin and growth efficiency for products; utilisation and margin for services. Presenting the wrong set costs value.
Growth capital or sale
Many founders in this market are raising, not selling. The choice depends on the plan, the market window and what the founders want.
Product ownership and IP
Diligence on code ownership, data rights, dependencies and the people who built the platform is central.
Integration into a group
Technology businesses inside marketing groups need a different operating model from agencies. Buyers who plan for that create more value.
How we help
Growth capital and M&A for marketing technology
We advise adtech and martech founders on growth capital raises and sales, including current mandates for an ad-tech company expanding internationally and an AI-powered connected TV platform, and we advise investors and acquirers assessing technology businesses.
Our platform, Motion OS, gives us and our clients value, deal risk and buyer signals built for this market, and our relationships reach investors and acquirers across the UK, Europe, North America and Asia.
- Sell your agency: objectives, preparation, buyers, process, negotiation and completion.
- Buy an agency: criteria, market mapping, approach, assessment and transaction support.
- Strategic growth advisory: partner level support in four week sprints, long before a deal is in sight.
Related resources
Raising capital or selling a technology business?
A confidential conversation with a founding partner about where you are and what comes next.