ICTs the only sector to see an upturn in investment activity

, ,
Integral service around a transaction
BY : Diego GutiérrezSeptember Wed, 2013

ticsDespite a downward trend in investment across the board, the information technology (ICT) sector has seen a rebound in the second quarter of 2013. Private investment firms invested 12,500$ million in 65 deals in the second quarter, which is at a similar level to the last two years.

The ICT sector remains untouched by the general downturn

According to information provided by Pitchbook, in recent years the sector has maintained its interest from an investment point of view. Although invested capital remains below peak levels, 2012 saw the highest post-crisis level with 312 transactions and 2013 seems to maintain this trend.
"Valuations have been high in recent years, which is keeping many investors out. Despite this, many investors are finding ways to do expansion capital operations by taking minority stakes and smaller contributions," says Diego Gutiérrez, corporate finance expert at ABRA INVEST.

Despite high valuations, company sales are stagnating

Investors are not putting their portfolios up for sale despite the good returns they are receiving. There have been only 22 sales during the first half of the year, which is less than half of the same period in 2012.
"We see two possible reasons for this small number of exits. At the end of 2012 there was a lot of selling and this may have delayed the next cycle. Another reason is that investors have expectations of a substantial improvement in fundamentals in a short period of time and therefore expect a better valuation," analyses Diego Gutierrrez.

Saas and Healthcare most relevant sectors

Investors are focusing on companies that can deliver improvements in cash-flow generation and lower overhead costs, particularly with "software as a service" (Saas). This trend looks set to continue in the coming months for both business-to-business (B2B) and consumer (B2C) services.
Another segment that is gaining attraction is the health ICT segment, driven by the upcoming passage of the Affordable Care Act, which will lead to an improvement in the quality of health care. transparency of costsin data analysis and infrastructure.

The M&A Professionals

Meet our services



Do you want to be up to date?


Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?