Deloitte Corporate Finance’s Post

At Candriam, we believe in the power of innovation and sustainability. Our latest research reveals how emerging markets excluding China are becoming central to global economic growth. From India's booming consumer sector to Southeast Asia's tech advancements, these markets are ripe with potential. Check out our new article to learn more about these dynamic opportunities. 🔗 https://lnkd.in/eb5R4gHw ⚠️ For professional investors #candriam #investing4tomorrow

At Candriam, we believe in the power of innovation and sustainability. Our latest research reveals how emerging markets excluding China are becoming central to global economic growth. From India's booming consumer sector to Southeast Asia's tech advancements, these markets are ripe with potential. Check out our new article to learn more about these dynamic opportunities. 🔗 https://lnkd.in/eSKDFZ7E ⚠️ For professional investors #candriam #investing4tomorrow

While investments in emerging technologies such as GenAI are growing, PwC's 2024 Digital Trends in Operations Survey finds that companies aren’t achieving the anticipated outcomes with tech investments. Interestingly, almost 40% of companies have changed their operating model over the last year to react to an ever changing environment.

Even amidst current market uncertainties, the growth forecast speaks volumes about the resilience and adaptability of the #realestate industry. 🏠 💬 Key Question: How do you envision these transactions unfolding? Which emerging technologies will play a pivotal role and which will become redundant?

At Candriam, we believe in the power of innovation and sustainability. Our latest research reveals how emerging markets excluding China are becoming central to global economic growth. From India's booming consumer sector to Southeast Asia's tech advancements, these markets are ripe with potential. Check out our new article to learn more about these dynamic opportunities. 🔗 https://lnkd.in/eyHcbbuG ⚠️ For professional investors #candriam #investing4tomorrow #candriam #investing4tomorrow

There are pockets of strength emerging beyond the Magnificent 7 Despite eye-popping returns in 2023, the Magnificent 7 look less impressive over a slightly longer time horizon. In the two years from the start of 2022 through 2023, only one of the Magnificent 7 ranked among the top-returning companies in the S&P 500 Index due to severe drawdowns in 2022.  While one can argue that tech’s premium valuations are justified given their strong earnings and new growth runway in artificial intelligence, the chart shows a broader number of S&P 500 constituents posted relatively strong returns in areas such as energy, health care and industrials. As earnings growth recovers in non-tech sectors, we could see a more diverse set of companies garner investor attention. To dampen portfolio concentration risk, an asset allocation program may want to seek greater diversification by reducing overall exposure to technology companies and U.S. equities. (Source: Capital Group)

As always, our annual Technology Trends Outlook is packed full of insights, and here’s the one that stood out most to me… Technology equity investments decreased in 2023, falling by about 30 to 40 percent to roughly $570bn. It’s tracking! While investment is down, the interest business leaders have in the technology trends we’ve highlighted remains strong, and certain trends are bucking the economic headwinds, too. Electrification and renewables and generative AI, remain two stand-out trends, experiencing the most significant growth and the greatest overall investment. And this surge in investment is having a trickle-down effect on other AI-related technologies, such as applied AI and MLOps. All of this points to a positive future. While overall investment is down, a lot of this is a reflection of our current economic environment. If this improves in the coming months, then I’d expect to see investment grow across the board next year. You can read the full report here: https://lnkd.in/eYQTZ7yt #McKinseyTechTrends #McKinseyTechnologyCouncil #McKinseyDigital

Unlocking future success: Just 7% of companies are consistently getting value from their emerging technology and GenAI investments across key areas that benefit business. #PwC’s latest Emerging Technology Survey polls these “EmTech Accelerators” to understand how they’re already achieving measurable value from their tech-related investments. Discover more.

Discover how emerging technologies are revolutionizing investor and end-user connections in the real estate industry, fostering stronger relationships and smarter investments. #RealEstateTech #InvestmentStrategy #UserEngagement #technology #CTO #tech https://lnkd.in/eKY4ZW77

We want to highlight some milestones from the last quarter in the #technology industry, both at the market level and in #MandA: ● Market Trends: The technology sector exhibited significant growth in public markets, particularly noted in the S&P Tech index, reflecting enhanced investor confidence. The first quarter of 2024 showed strong performance with a 5.1% increase in the S&P Tech index . ● Global M&A Dynamics: The total number of transactions saw a modest decline, yet there was a significant rise in high-value deals. VC-backed exits increased from 247 in Q1 2023 to 296 in Q1 2024, indicating a bullish investment approach in high-growth sectors . ● LatAm M&A Dynamics: Data & Cybersecurity, IoT, Outsourcing & Automation, Fintech, and AI were the primary sectors for M&A deals in the first quarter. Regarding fundraising, Fintech remains at the forefront of investment rounds, with increasing interest in AI advancements. ● Sector Performance: The B2B segment remained robust with 1,156 transactions in Q1 2024, showing resilience despite a slight decrease from 1,180 in Q1 2023. The largest deal was valued at $35 billion, reflecting strong investor interest in strategic acquisitions . ● Regional Insights: Europe and North America exhibited varied trends with significant changes in deal sizes and values. North America had 4,204 deals worth $464.1 billion in Q1 2024, while Europe's deal count reached 4,594 with a total value of $166.4 billion . ● Valuation Adjustments: The downward adjustment in M&A EV/EBITDA and EV/Revenue multiples suggests a more conservative valuation approach in the current market. M&A multiples for Q1 2024 remained stable at 9.5x EV/EBITDA and increased slightly to 1.7x EV/Revenue . For detailed information, read our full newsletter.