2021 Technology and M&A Trends with Bulent Hasanefendioglu
We had a conversation about technology and technology companies with Mr. Hasanefendioğlu. He has more than 30 years of expertise in finance, internal audit, consultancy and is also the Head of the Consultancy Department at TDG Global.
What have you been doing lately?
Recently, the epidemic has come to the fore, so we take care of our health.
In terms of business, I have been a focus on digital transformation consultancy, merge and acquisition, financial and managerial consultancies.
With the popularity of virtual platforms after the epidemic, I can say that we are working more than before.
Let’s talk about the trends of 2021. What will be the featured technologies?
Internet banking seems open to new developments.
Artificial intelligence and machine learning add a new dimension to every area they touch.
Cloud technology will continue to improve rapidly. Internet of Things (IoT) affects all sectors.
There has been rapid development in Augmented Reality in the last few years. I think more concrete products will emerge this year. Since the epidemic, game and game technologies have become very popular.
What about digital transformation? What would you recommend to companies in creating digital transformation?
Digital transformation is one of my areas of interest and focus. But there is not much going on well in this regard. 7-8 years ago, or in researches conducted last year, we see that the failure rate of companies in digital transformation projects is 70-80 percent. In other words, only 20-30 percent of every digital transformation project can be successful.
I am looking for the answer to what can be done to make digital transformation projects more successful.
“There is no problem with technology, but people are the decision-makers”
Leaving aside technology and external factors there are humanitarian deficiencies in the failure of digital transformation projects. These humanitarian deficiencies also lead to the projects’ failure.
Under the leadership of the CEO, a competent team should be established and long-term planning should be made. And by using this leader team at every level, we should inform the whole organization; employees, stakeholders, how the long-term outputs of the digital transformation project, the benefits to the company, and how small projects that are carried out step by step will contribute to the stakeholders. That is a long and narrow road; for this reason, they do not prefer it.
What is the future of the banks and fintech relationship? What awaits these two sectors?
Banking is now becoming invisible. We have become not to see names of banks even in our transactions on online platforms. We use a lot of fintech infrastructure. As a consumer, we do not know which bank that fintech is integrated. With the latest video call processes, we quit wet signatures. It seems like people won’t need to go to the bank physically.
Let’s talk about company acquisitions and mergers (M&A), which is the title of our broadcast. What is the course of M&A transactions over the past five years? What expected in 2021?
In the last five years, there has been a dynamism in the purchases and sales of technology companies. We heard miracles about startups and unusual pricing.
With the epidemic, there was a multiplier effect. From the second half of 2020, both corporate values and M&A transactions of technology companies have boomed.
I am waiting for a record in 2021. There is an increase of one hundred and eighteen percent compared to the first three months of the previous year. Besides the abundance of money in the market, there is an incredible interest in tech companies. Currently, there are hot market conditions. It is necessary to be very careful during these hot market periods.
What opportunities are there for Turkish startups?
Globally, there are opportunities in every sense.
One of the most significant shortcomings I see in Turkish startups is that they do not have a financial model.
Your idea or your technological infrastructure is not enough to explain yourself to Venture Capitals very well. You have to make excellent presentations on the financial model, staff, competence, organizational structure, and business development.
What are the secrets of successful M&A transactions?
Before the purchase, it is necessary to make a detailed examination of the company.
While the company is acquired in M&A transactions, the management of the acquired company is expected to continue for one to five years.
As in digital transformation, the “Human” factor determines the success and failure of M&A transactions.
In company purchases, in addition to whether the company is suitable for your company, it is necessary to pay attention to whether it will bring the technology you targeted or new customers. Or you are a seller and will get a partner, you need to consider whether this partnership will only deliver your company investment.
Technology is at an incredible breakthrough, so this industry seems to be the brightest.