Activity Report 2023
The geopolitical and financial market turbulence seen in 2023 led to instability in the banking system, most dramatically with the collapse of Silicon Valley Bank in February and Credit Suisse in March. These headwinds triggered a 20-40% reduction in investment banking revenues among the banking peer group. Throughout our 27-year history, the hallmark of Bryan Garnier has been our ability to adapt to changing market conditions. In that respect, 2023 was no exception.
Bryan Garnier has emerged as a resilient force, achieving significant milestones and advising record setting transactions in the Healthcare, Software & Fintech, Energy Transition & Sustainability, Industrial Tech and NextGen Consumer sectors. In addition to seeing strength across our M&A and growth financing in both private and public markets, we were also delighted with the success of our Debt Capital Advisory business.
Thanks to our focus on the Healthcare and Technology related sectors, a significant cohort of our clients have a positive Environmental Social & Governance (ESG) impact. Protecting the planet is an important part of our mission, and we attach great importance to our role of providing creative capital-raising solutions to our client base in energy transition and sustainability.
Our Activity Report provides a comprehensive market analysis of 2023 with key data, as well as outlooks for 2024.
Some topics we cover in this report include:
- MedTech needs to buckle up: Sound strategic advice from sector experts is particularly crucial in the MedTech sector in current market conditions.
- HR Tech shines: A recent Gallup report on the State of the Global Workplace reveals that 59% of the world’s employees are discreetly disengaging, resulting in an annual cost of approximately USD8.8tn to the global economy. This underscores the imperative for talent-focused solutions, which will undoubtedly continue to attract venture capital and private equity funding.
- Bio and Alternative Fuels on the rise: This sector is undergoing a transformative phase, shifting from fossil fuels to electrification and renewable options.
- The inevitable surge in cybersecurity: Companies recognise the imperative of maintaining robust cybersecurity measures to avoid the severe consequences of attacks, including ransoms, litigations, fines, opportunity costs and lasting damage to reputation.
- A dynamic year for Generative AI: Generative AI triggered an industrial revolution in content creation, personalisation and recommendations. Furthermore, an impressive USD38bn has been invested in AI start-ups over the past 12 months alone.
- A surge in demand for better-for-you products: The size of the global Health and Wellness F&B market is approximately USD1tn in 2023 and is expected to grow to around USD1.6tn by 2028.
Get the report and stay ahead of the curve.
Contact us at communication@bryangarnier.com to know more and let us advise you through your growth journey or help you spot the best investment opportunities.
The Plastic Revival
PARIS | January 11th, 2024 – BG IRIS, Bryan Garnier’s research platform, is pleased to release the “The Plastic Revival”, a comprehensive analysis of the sector as well as underlying financing and M&A market activities.
Plastic was fantastic, but now it has become a major burden as most plastics currently in use are produced from non-renewable resources such as crude oil and natural gas. The annual global production of plastics amounted to 400 million tons in 2022 and is set to reach 750 million tons by 2050, yet only 9% of plastic waste is recycled globally.
For decades, efforts to collect and recycle plastic waste have been economically challenging. However, broad coalitions of players across the plastics value chain are taking actions to address this transgenerational issue. Real growth for sustainable plastics is just about to start and should merely accentuate over the coming years.
Within this white paper, we provide a comprehensive guide to the plastic revolution, unveil emerging regulations, and explore advanced recycling technologies. Our analysis uncovers challenges and expert opinions that will shape the industry’s future.
To dive deep into this topic and discover more about plastic recycling as a transformative industry of the future, download the white paper.
Paul de Froment
BG IRIS
L’AGEFI interview with Antoine Lebourgeois, BG IRIS Analyst at Bryan Garnier
Following an insightful interview with BG IRIS Analyst Antoine Lebourgeois, Capucine Cousin penned an article in L’AGEFI shedding light on Elon Musk’s desire to connect smartphones directly to his Starlink network and the possible implications. In this summary, we capture key points from the interview and provide a link to the full article in French.
Elon Musk wants to revolutionize the telecom sector by connecting smartphones directly to his Starlink network. On Wednesday 3rd January 2024, a SpaceX Falcon rocket delivered a new batch of high-speed satellites.
Is this a threat to traditional telecom operators? Not really.
“Satellite operators like Starlink need access to frequency bands to launch their satellites. This means partnering with telecom operators to access them”, notes BG IRIS Analyst Antoine Lebourgeois. Starlink can’t bypass the telcos – it must be able to use their low-bandwidth frequencies and must get the green light from local telecom regulators.
“For the time being, it’s just a basic service, a sort of emergency service for sending SMS in areas with poor coverage”, continues Antoine Lebourgeois.
To dive deep into this topic and discover the future of the space industry, request the white paper.
The Evolving Landscape of Agency M&A by Sebastian Schirl
In the 100th episode of #WhatsNextAgencies, Kim Alexandra Notz engages in an insightful discussion with Sebastian Schirl, Managing Director at Bryan, Garnier & Co’s Business & Tech-Enabled Practice.
Specializing in the Digital Media industry, Sebastian shares market perspectives and current dynamics that shape the industry’s trajectory.
Providing a clear assessment proves challenging amid current geopolitical and inflationary context, as well as the heightened volatility that is steering a shift towards private placements during adverse market conditions. However, two transformative shifts demand attention: AI and profitability.
Key industry trends: AI, profitability and measurable success
The escalating impact of artificial intelligence (AI) will lead to a paradigm shift, set to fundamentally alter the marketing industry. Before October 2022 and the emergence of OpenAI, the world was vibrant, and everything seemed to be progressing smoothly. Sebastian highlights impressive figures: currently, every second a content asset is generated by AI, and by next year, three out of four content assets will be AI-produced. This transformative shift poses challenges for those engaged in contextual marketing, especially concerning text copy, and presents opportunities for those who focus on leadership in creativity, an area where AI has limitations. The imminent influence of AI on the industry is expected to rearrange the landscape.
Another prominent trend that Sebastian addresses is the surging demand for agencies to exhibit measurability, focusing on performance marketing and data-driven approaches. A paradigmatic shift is evident in the evaluation of agency performance, with profitability taking precedence over conventional growth metrics. Investors, encompassing both strategic and financial realms, now prioritize sustained profitability when contemplating acquisitions.
Sebastian shares insights on actively increasing company value by focusing on transparency, data, and performance. Irrespective of sales intentions, understanding trends, potentials, and growth areas is crucial for agencies to strategically position themselves for the future.
Agencies must become more measurable, emphasizing data and performance. Performance marketing, data-driven approaches, and leveraging First Party Data are becoming crucial for success. Agencies that adapt to these trends and demonstrate profitability will navigate the challenges effectively.
Profitability has become a central focus for investors, with a shift away from solely prioritizing rapid growth. Stable and profitable companies in the digital consultancy and performance sectors are especially sought after. The ability to showcase profitability has become essential for a favorable valuation.
M&A dynamics
The M&A landscape is influenced by these factors, with a trend towards stability and profitability. While uncertainties persist, successful companies can find opportunities, and we anticipate an increase in transaction volume in the coming year.
Investors, both strategic and financial, play a crucial role. In the current climate, stable and middle-market technology companies are more sought after, while large agency holdings are exhibiting more caution in acquisitions. Challengers, often from the technology sector, are becoming more active in the M&A space, driving deals with a focus on technology as a core service element.
As the industry adapts to changing dynamics, maintaining agility is crucial for entrepreneurs, investors, and industry professionals alike. The journey from agency ownership to acquisition is nuanced, requiring an adept understanding of cultural shifts, challenges, and the intricacies of valuation metrics. In this evolving agency landscape, staying informed, adaptable, and well-connected remains paramount for sustained success.
For marketing agencies navigating the evolving landscape, key considerations include embracing data-driven marketing strategies and integrating technology into core services. In the M&A realm, agencies, particularly challengers, are subject to private equity involvement, with strategic and financial buyers approaching deals differently.
Relationship-driven approaches and a focus on EBIT (Earnings Before Interest and Taxes) valuation, often normalized for private, owner-led agencies, are crucial in initiating successful discussions. Factors influencing valuation multiples range from agency performance to service diversification, impacting negotiations with both strategic and financial buyers. Motivations for selling, including a generational shift and business challenges, contribute to the dynamics of agency sales. Looking ahead, agencies must align with market demands, addressing growth challenges and optimizing profitability before considering M&A. Post-sale success hinges on strategic planning, integration execution, and adapting to new corporate structures within larger groups. As the agency landscape continues to evolve, understanding these factors is essential for agencies planning for future growth, M&A, and long-term viability within the industry.
How to navigate the M&A landscape
Embarking on Mergers and Acquisitions (M&A) requires a meticulous approach from marketing agencies. First and foremost, agencies should articulate clear objectives, whether seeking growth, diversification, or an exit strategy. Conducting a comprehensive assessment of the agency’s value, including a SWOT analysis, is crucial. Building strong industry relationships through networking and staying abreast of market trends enhances visibility. Financial health and legal compliance should be prioritized, while showcasing the team’s expertise is essential. Creating a well-organized data room and engaging experienced advisors streamline the process. Thoughtful negotiation, transparent communication, and detailed post-acquisition integration plans contribute to a successful M&A journey.
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About the author
Sebastian Schirl is the managing director of Business & Tech-enabled Services at Bryan Garnier & Co
Date published: Dec 12, 2023
For more information, please contact Sebastian Schirl.
Sebastian Schirl
Investment Banking
15 Award winners with innovative climate and green technology solutions at the Tech Tour Growth Sustainability 2023 in Essen
Bryan Garnier is pleased to partner with Tech Tour at their flagship Growth Sustainability 2023 event held in Essen from 27-29 November. The event showcased 95 of Europe’s most promising companies specializing in climate and green technology solutions. These companies were carefully selected for their growth potential from a pool of over 1,000 applicants. Among them, 15 award winners were selected during the event for their innovation and cutting-edge solutions.
The event featured 45 Program Winners from 7 specialized Tech Tour Programmes in sustainability, chosen by a panel of 400 investors from 250 presenting companies. An additional 50 Growth companies in the energy sector were selected by a panel of 70+ European investors from 150 applications.
Germany led the way with 33 companies, followed by the Netherlands with 11, and both Norway and the UK contributing 7 each. Notable attendees included Falk Mueller-Veerse, Partner & Head of DACH at Bryan Garnier, and Jay Marathe, Managing Director within the Energy Transition & Sustainability Practice at Bryan Garnier, who were present and were part of the jury.
Falk Mueller-Veerse, Partner & Head of DACH at Bryan, Garnier & Co comments: “This year, German companies have led the way with 33 companies out of the 95 selected from a pool of over 1000 applicants. Germany is home to innovative growth companies in climate and green technology solutions that are still flourishing in tumultuous times. Events such as the Tech Tour Growth Sustainability act as growth accelerators to these companies, exposing them to investors who might lead the next rounds of financing they need.”
The event included 15 pitching sessions where Award Winners were selected by over 140 investors. Congratulations to the 15 Award Winners: Strohm, Asperitas, b.fab, BeFC, BuyCo, Dexter Energy Services, JUUNOO NV, Kelpi, Magment, Naco Technologies, NexWafe, renasys, Strohm, Unigy, Woon Duurzaam, and Yeastup.
The Tech Tour Growth Sustainability 2023 was hosted by BRYCK and partnered with esteemed organizations, attracting 300+ participants from 24 countries. The success of the event lies in the interaction and collaboration between companies and investors, reinforcing its role in facilitating investment in technology companies.
Tech Tour, known for connecting tech companies with investors, has facilitated over €20.7 billion in investments in the last 7.5 years. Missed this year’s event? Don’t miss out on the upcoming Tech Tour Growth50 Europe 2024 for another transformative experience! Find out more about the event on the Tech Tour website.
At Bryan, Garnier & Co, we are honoured to be a partner to Tech Tour Growth Sustainability 2023 edition and look forward to celebrating the success of Europe’s most promising tech companies. Learn more about the event on Tech Tour’s post.
BG Growth Series - CARBIOS
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Embark on the remarkable journey of Carbios, a company revolutionising plastic recycling. We sat down with Emmanuel Ladent, CEO, and Philippe Pouletty, founder and president of the board. They’re charting a course to transform the life cycle of PET plastics, attributing value to what was previously deemed as waste.
The 9 million tons of plastic polluting our oceans annually inspired Carbios to give value to the plastic in its pioneering method, which involves exclusive enzymes that break down PET plastics, converting them into 100% recyclable materials, thereby fostering a circular economy for plastics.
Carbios‘ focus isn’t solely on PET plastics; they’re working on providing enzymatic solutions for other types of plastics, leading the way in radical innovation.
Carbios leaders direct key messages for growth entrepreneurs, including the importance of continuous news flow and timing financial markets. Act decisively, propel your mission, and articulate your vision clearly.
The company’s approach underscores the significance of seizing opportunities and maintaining continual progress.
Bryan Garnier has played a pivotal role in supporting Carbios’ mission and successful capital raises, advising Carbios since the outset through 4 successful strategic growth transactions, including the latest €141m capital raise.
Carbios turned a scientific concept into tangible industrial activity within their demonstration plant. Their ambitions extend to establishing bio-recycling plants worldwide within the next decade.
Join us in this episode of the BG Growth Series and witness the evolution of plastic recycling as Carbios spearheads sustainable change.
Venture Capital Forum 2023 with Invest Europe
Navigating in Times of Uncertainty
Invest Europe’s 2023 Venture Capital Forum was a resounding success, and we were delighted to once again lead as the primary sponsor. Our continued partnership with Invest Europe underscores our unwavering commitment to supporting growth companies at every stage of their financial journey and helping them navigate the complex landscapes of Venture Capital and Private Equity.
This year, our Managing Director & Co-Founder, Greg Revenu, took the stage to deliver a keynote address that illuminated the pressing issues and exciting opportunities in the world of venture capital.
Key Takeaways from the Forum
*Greg Revenu’s keynote speech was filled with valuable insights and forecasts for the industry. Here are some key takeaways from the event:
Resilient Growth: Despite the volatility, the Venture Capital industry has experienced remarkable growth throughout the 2020s.
Challenges Ahead: 2023 brings its own set of challenges, including limited exit options and difficulties with Initial Public Offerings (IPOs), which have significant implications for VC fundraising.
Long-Term Resilience: The VC sector has demonstrated its long-term resilience, with both demand and supply steadily increasing. Price adjustments are poised to drive further innovation in this sector.
Adaptation and Diversification: Venture capitalists are adapting by expanding structured growth financing, emphasizing Environmental, Social, and Governance (ESG) factors, and diversifying their capital sources.
Emergence of Private Debt: Private debt has emerged as one of the fastest-growing asset classes in global private equity, signifying a significant shift in investment strategies.
Exit Uncertainties: While the reset phase is nearing completion, uncertainties regarding exits continue to loom over the industry.
During the conference, Greg Revenu was joined by our Head of Private Capital Markets, Julien Polenne, to chair the event, offering further insights and moderating illuminating panel discussions and Q&A sessions.
Our expert team had a fantastic opportunity to engage with Limited Partners (LPs) and General Partners (GPs) who are shaping the future of VC investment and facilitating growth in innovative companies.
We’d like to extend our sincere thanks to Invest Europe for their ongoing partnership and commend them on yet another successful event.
Invest Europe is the world’s largest association of private capital providers. They represent Europe’s private equity, venture capital and infrastructure investment firms, as well as their investors, including some of Europe’s largest pension funds and insurers. Invest Europe’s aim is to promote a better understanding of private equity that enables our members to invest capital and expertise into improving businesses and generating returns for investors, free from unnecessary regulation and constraints. Invest Europe’s members take a long-term approach to investing in privately-held companies, from start-ups to established firms. They inject not only capital but dynamism, innovation and expertise. This commitment helps create healthy and sustainable companies across Europe, securing millions of jobs and delivering strong returns for leading pension funds and insurers whose members depend on them for their retirements.
Welcome to our Q3 2023 Quarterly Report
Welcome to our Q3 2023 Quarterly Report, carefully curated with topics that we believe will be of interest to our clients and partners. We also share M&A market commentaries and the latest Bryan, Garnier & Co deals in the healthcare, software & fintech, industrial tech, energy transition & sustainability, and business & tech-enabled services sectors. This report, we deep dive on:
- Uncovering the truth behind alternative protein
In a world of information overload, we cut through the clutter to explore the production, feasibility, and implications of the alternative protein industry. Discover how fermentation is transforming the landscape and dispelling common industry myths. - Space: The Final Frontier
With a remarkable 45% YoY increase in space deals leading up to Q3 2023, we delve into the challenges, M&A activity, and market potential of the NewSpace movement. The stars have aligned for exciting opportunities. - M&A deals activity
Gain a deeper understanding of the M&A market in our sectors of expertise and the profound impact of the current macro environment, as our partners provide their invaluable perspectives.
These insights are designed to empower investors looking to navigate the ever-evolving market trends.
Download the report and stay ahead of the curve. Have questions or want to explore opportunities further? Contact us at communication@bryangarnier.com and let us advise you through your growth journey or help you spot the best investment opportunities.
Latest White Papers
3min Insights - Agronutris
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Welcome to “3-Minute Insights,” a new series showcasing innovative companies, products, and technologies that are shaping the future of key industries.
We sat down with Mehdi Berrada, Co-Founder and President of Agronutris, to talk about the company’s journey from startup to a pioneering biotech company operating a 16,000 square meters industrial insect plant in Rethel, France.
Bryan Garnier & Co acted as the sole financial advisor for Agronutris in successfully raising €100 million, marking a significant milestone in their journey. Mehdi has shared the success of our partnership, built on strong human relationships, industry knowledge, and unwavering determination for success.
Earlier in 2023, BioMar and Agronutris signed a long-term partnership to develop the next generation of black soldier fly meals specifically designed for the aquaculture industry.
Our interview with Mehdi delves into the exciting world of Alternative Proteins and AgTech, providing insights into the latest industry trends, including the dynamic landscape of Aquaculture and the integration of insects into human eating habits.
But Agronutris is about more than just food; it’s about transforming our approach to consumption and production, ushering in a brighter, more sustainable future for all of us.
Bryan Garnier & Co. shares in this vision, committed to supporting innovative companies in the Alternative Proteins sector and beyond. As a partnership with a strong entrepreneurial mindset, Bryan Garnier puts entrepreneurs at the heart of every operation. Our client’s success is our success.
Join us on this transformative journey as we explore the future of food and sustainability.
BG Growth Series - Shark Solutions
bethsabee gresse
Welcome to the “BG Growth Series”, where entrepreneurs tell us about their inspiring stories, share invaluable insights, and offer practical tips to navigate the growth journey.
We sat down with Jens Holmegaard, the visionary founder of Shark Solutions, a global pioneer in sustainable PVB products. His journey began with a car – kind of.
Inside every windshield since 1930 lies a polymer laminate, and a significant portion of it goes to waste every year. Jens Holmegaard asked the obvious question, “Why are we throwing away so much valuable material?”
Jens, a mechanical engineer with a Ph.D. from the Technical University of Denmark, decided to tackle this challenge head-on and turned it into an opportunity to drive sustainability. Shark Solutions has developed a unique technology that separates the components of windshields, allowing them to be recycled into new products.
However, the journey to success wasn’t linear. Jens shares his experience and emphasises, the importance of patience, seeking the right partners, and the role persistence plays in the entrepreneurial journey.
Just like a pilot in a car race, no entrepreneur can succeed alone. Jens tells us about the importance of working with partners and cites Bryan Garnier as a relevant example when it comes to seeking investors.
Our clients, like Jens, are addressing some of the world’s most pressing sustainability challenges. Our sector-driven advice, rooted in deep industry knowledge, global perspective, and full-service platform, is designed to accelerate their long-term success.
Join us in this Episode of the BG Growth Series as we dive into the incredible journey of Jens Holmegaard and Shark Solutions, and discover how faith, persistence, and innovation have resulted in a successful venture working towards building a more sustainable world.