M&A Fintech Bubble Report

Note from the Publisher:  International law firm White & Case has released a 28 page report entitled “Fintech M&A: From threat to opportunity”.  While we don’t consider fintech a threat, no doubt legacy banks and the like may, but regardless, they do have some great information in there worth checking out.  Generally speaking, they see ongoing opportunities for investment within the “sector”, but cite bubble valuations as a concern.  In fact, we just talked with a VC yesterday about the Stripe valuation and did a bit of jab on that fintech’s new (in our opinion overinflated) $9B valuation in this piece featuring the Pets.com sock puppet.  

“White & Case surveyed 150 senior executives at banks, asset managers, insurers, fintech firms and private equity/venture capital firms and found that the future is bright for fintech dealmaking, with the evolving market encouraging mergers and acquisitions.

Ninety-five per cent of respondents expect to do a fintech deal in the next 12 to 24 months, according to a November 29 report from the law firm – a sign of the increasing maturity of fintech firms.

But the respondents worry that inflated deal values could lead to a bubble. More than half said fintech firms are overvalued and 95% expect prices to continue to rise.

Executives considering deals are also concerned about performing “satisfactory” due diligence on digital assets.

The importance of Silicon Valley and North America to the growth of fintech looks set to continue, with 37% of respondents predicting the region will be the busiest for dealmaking over the coming years.”

Source: eFinancialNews

Read White & Case Report Here