FinTech Deals

The FinTech sector is one of the fastest growing investment markets. Our FinTech Deals team helps clients to capture value across the entire deals lifecycle

FinTech: efficiency driver or disruptor?

Technology continues to transform the Financial Services landscape and in increasingly new ways, presenting significant investment opportunities for a wide range of investors. The Financial Services industry is recognising the ability of FinTechs to help solve some of the industry’s most intractable problems. 

These technologies are principally driving transformation in the market through disrupting existing business models:

1.     Promoting efficiency gains in processes / businesses

2.     Disrupting existing business models by utilising technology

FinTechs are transforming the Financial Services landscape by leveraging market technologies (tech-enabled solutions) or producing self-written code or hardware (tech IP).

Investment drivers

Overall, investors are increasingly focusing on FinTechs to provide capital-light access to the Financial Services markets.

Large and growing market fuelled by technological development and innovation
Diverse range of investable assets ranging from start-ups to mature businesses
Capital light businesses with high margins
Highly scalable business models

Market trends

Creating positive dynamics for FinTech investments

How we can help

We are the pre-eminent "strategy through execution" FinTech Deals firm, leveraging our deep Financial Services and technology vertical expertise.

Our experienced FinTech Deals team helps a broad range of investors, entrepreneurs and corporates to capture value across all stages of the deal lifecycle in a fast moving, high growth market.

Buying/selling a FinTech business

Our FinTech Corporate Finance team offers the focus of an ‘investment banking boutique’ with access to the resources, industry expertise and integrated advisory services of the entire PwC Global Network.

Whether you are a private equity house, entrepreneur or corporate, our dedicated FinTech M&A team can advise you on all aspects of a transaction process.

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Management advisory

If you’re a member of a management team of a FinTech business undergoing a buyout or transaction, our specialist Management Advisory team can:

  • Provide independent advice on the implications of the deal
  • Model and benchmark your investment returns under the proposed deal structure
  • Negotiate the nature and structure deal terms
  • Help you and your team to get the best result possible and safeguard your financial interests

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Commercial due diligence and corporate strategy

Our FinTech Deals strategy practice helps clients solve their most challenging strategic problems by bringing insights and taking an issue-based approach.

We are the pre-eminent strategy through execution FinTech Deals firm, leveraging our deep Financial Services and technology vertical expertise.

Commercial Due Diligence

We are a leading adviser to FinTechs and private equity firms on the key commercial issues they face across all stages of the deal cycle.

Corporate strategy

In a highly dynamic industry, it is more important than ever to have a robust strategic plan to win in the market.

Our understanding of the challenges facing the incumbent Financial Services providers gives us deep insight into the right strategic priorities for FinTech’s to grow profitably and maximise value, and we offer support and practical solutions to achieve these objectives.

Strategic insights

FinTech markets are changing rapidly and we generate fresh and relevant insights for our clients to help them make better business decisions with more confidence.

We combine strategic insight, rigorous analysis and in-depth industry expertise with access to our market leading global network of industry and functional specialists, local knowledge and resources.

Sales and marketing

We help our clients unlock the potential of their capabilities to improve performance and drive sustainable organic growth

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Cyber security

Cyber security attacks have never been more disruptive or damaging to business operations, reputation and value. Recent attacks have cost firms £100m’s in lost revenue and remediation and operational expenditures, as well as wiped out 30% from the share prices of some victims.

Left unchecked, cyber security risk can fundamentally undermine the value and commercial strategies that initially spurred proposed mergers or acquisitions.

What we do

Our cyber security team helps FinTech businesses to proactively identify security risks associated with:

  • their prospective investments or divestments
  • providing visibility of key risk exposures and the cost to address these

We advise FinTech companies how to securely realise the synergies associated with their acquisitions and provide structured guidance on effective integration and cost-effective capability development.

Benefits

Our experience delivering cyber security transformation projects and extensive industry partnerships enable us to guide FinTech businesses on how to:

  • maximise return on security investment
  • streamlining their security function whilst continuing to address core security risks

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Data and analytics

We help clients by defining a data and analytics strategy. Using our business knowledge, experience and data and analytics expertise, we help our clients position themselves to take advantage of greater use of data through answers to questions such as:

  • How do we embed big data and predictive analytics to improve everyday processes?
  • What people and skills do we need?
  • Where should the Data and Analytics function sit and how should it interface with the rest of the organisation?
  • How can we monetise the organisation’s data to drive revenue?

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Digital due diligence

In this digital age, it is increasingly important to have a strong online presence and digital strategy to capture as large a share of the customer’s wallet as possible.

What we do

We have the ability to undertake a detailed review of user experience to help identify potential digital transformations and evaluate existing plans for improvement.

Benefits

This helps inform future actions and quantifies any associated costs, so that as much value as possible can be derived from the website.

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Financial due diligence

Many participants in the FinTech industry remain unprofitable in the main as they race to expand nationally and internationally.

What we do

Our financial due diligence provides peace of mind to both corporate and private equity buyers, by analysing and validating all the financial assumptions made in the business plan.

Benefits

We aim to address the key risks, concerns and issues, using past trading experience to form a view of the future and confirms that there are no 'black holes'.

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Nurturing FinTech start-ups (Scale) and raising investment (Raise)

Scale

Our Scale-up programmes help businesses accelerate their growth from seed start-up to an established business through access to a pipeline of new customers, channels to market and our exclusive network. Our FinTech programme can act as an excellent showcase of a startup’s potential technology to a wider range of potential customers than by themselves. We bring both the FS providers and investors together so they can meet the FinTech’s in our programme.

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Raise

Our Raise team helps brilliant business ideas get their operations up and running, and gain investment to grow their business. Raise investment offers two propositions to help start-ups get investor ready and raise investment funds to help drive your business to the next stage of its lifecycle:

  1. Raise Programme

  2. Raise Investment+

Find out more

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Operational due diligence

FinTech companies continue to have high valuations in an investor attractive market. We work closely with both corporate and private equity buyers to provide a tangible estimate of the potential value and advice on key deal issues and opportunities:

  • We specialise in challenging management business plans for risks and understanding the potential for rapid operational improvements

Benefits

On the sell side, our operational due diligence helps clients to identify potential surprises (to prevent any potential future operational breakdowns) and sustain pace, control and initiative throughout the sale process.

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Technology due diligence

In FinTech businesses, the underlying tech platform typically IS the business. PwC’s FinTech technology team can help both vendors and buyers to answer the key deal focussed questions, covering both:

  • The technology platform
  • Technology operations (“TechOps”)

Our technology team works closely with our other workstream services to provide a complete and fully joined up suite of advisory services to help both vendors and bidders on how rapid innovation in technology in the FinTech industry will affect your strategy to help continue to drive growth in your business. Our technology due diligence work helps clients to both understand this process and identify opportunities for improvement to supercharge delivery.

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Valuations

When you work with us you will not only understand what your business, shares or assets are worth in the context of your transactions but also, strategic decision making, financial reporting, dispute, tax planning or group restructure.

To get an understanding of the value of an asset or business and what is really driving that value, you need experienced and dedicated valuation specialists and industry experts.

Benefits

With a dedicated FinTech Valuations team, you’ll have the right people to support you. By approaching problems from both commercial and technical aspects, you’ll get independent valuation advice that provides new insights alongside fulfilling an important corporate governance role.

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The FinTech ecosystem comprises a number of key sectors

Valuations remain high and businesses remain unprofitable but digital banks still attract investor interest

Sell-side banks (and other capital markets providers) face a number of issues which put pressure on margins.

Interest rates have been low for a number of years, putting pressure on insurers’ investment returns

Tech platforms can reduce distribution cost and improve performance of asset and wealth management portfolios

There are increasingly more opportunities for payment providers to move up the value chain

The regulatory burden has increased rapidly over the past few years, find out how they could impact you

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Contact us

Andrew Macnab

UK FinTech Deals lead, PwC United Kingdom

Tel: +44 (0)7979 600 615

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