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Robust IoT Transaction Environment and Valuations

Q Advisors Unveils Latest IoT Transaction Heat Map

Denver, CO – (July 19, 2016) – The IoT transaction environment remains robust with investment in the form of equity financing and M&A activity continuing to flow into the sector. According to Michael Crawford, Q Advisors Partner and a presenter at last week’s IoT Evolution Conference in Las Vegas, “Overall transactional velocity is high with approximately 80 financings and 40 acquisitions over the last twelve months. This is driven by a number of factors, namely:

  1. cash on the balance sheets of both strategic and financial buyers/investors;
  2. strategic imperative to participate in the IoT; and
  3. IoT evolving from abstract concept to defined businesses.

We are also seeing continued robust valuations (four-to-five times revenue) for IoT businesses with strong technology, growth, and margins.”

Crawford also unveiled Q Advisors’ proprietary 2016 IoT Transaction Heat Map at the conference to underpin these insights. The Q Advisors IoT Transaction Heat Map breaks down the value chain, providing data on both investment activity and aggregate valuations across the key IoT segments. It is intended to serve as a tool to assist IoT companies consider where they currently sit in the value chain and where they may want to expand in the future. Additionally, it provides investors with a mechanism for evaluating which of the functional IoT areas best fit their investment strategy.

According to the IoT Heat Map, while all segments of the value chain have been active, Capture, Transmit and Manage have been the hottest segments. Click here for a complete copy of the IoT Heat Map.

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