The Fintech Show 6.10: Selling Fintech Organisations

Welcome back to The Fintech Show, where we explore the process of selling fintech organisations and how to do so in current times, despite the arising challenges in valuation due to inflation. In this segment, we feature insightful interviews with Freddie Lower, Portfolio Director at Cazenove Capital, and Mark Bradbury, Fintech Founder and Investor, shedding light on the subject.

“The most sensible thing is to bring in some good corporate finance people. They’re brilliant with spreadsheets, which is always good because that’s part of the negotiation process. But that’s 9 months before [selling], and then you create an information memorandum, and then you go out to the market. That doesn’t change now, even in today’s marketplace, it’s gonna take 9 months to sell. The difference is that, in a lot of cases now, people are looking to sell because it’s difficult to raise funds for growth.” – Mark Bradbury

“If you are thinking about an exit, be clear in your mind about why you want to exit … If you aren’t going to raise the funding round or you don’t think you can, there’s the risk that your cash burn becomes too much to deal with, or that you end up raising a highly structured round with lots of preference and shares. Ultimately, failing to raise a round may lead to an exit, although it’s perhaps not the kind of exit you might have wanted, and not necessarily a great outcome.”