Global M&A Slowdown, But Micro-Cap Deals Thrive
The global M&A market has slowed down in 2023, with deal value down 44% year-to-date. However, there has been a steady interest in micro-cap deals, which are those valued at less than $100 million.
There are several reasons for the interest in micro-cap deals. First, these deals are generally done with little to no debt, which makes them more attractive to buyers in a rising interest rate environment. Second, micro-cap deals are typically easier to transact than larger deals, as they can be done in the millions of dollars rather than the billions of dollars.
One sector that has seen a lot of activity in the micro-cap M&A space is the digital business space. This sector includes websites that focus on monetizing content, such as via display advertising, digital products, digital services, lead generation, and more.
There are several reasons for the interest in digital business M&A. First, the digital economy is growing rapidly, and businesses are looking to acquire new assets to help them grow their market share. Second, digital businesses are often more scalable than traditional businesses, which makes them attractive to buyers looking for growth opportunities.
Shopify is one company that has seen a lot of interest from M&A buyers in the micro-cap space. Shopify is a platform that allows businesses to create and manage their own online stores. The company has been growing rapidly in recent years, and it now has over 1.7 million merchants on its platform.
Shopify’s stock has been volatile this year, but the company has continued to add new merchants to its platform. This growth has attracted the attention of M&A buyers, who are looking to acquire Shopify Apps to gain access to its growing customer base.
In addition to Shopify, there are many other digital businesses that are attractive to M&A buyers. These businesses include:
- Content monetization platforms: These platforms help businesses generate revenue from their content, such as through display advertising, affiliate marketing, and native advertising.
- Digital product businesses: These businesses sell digital products, such as ebooks, software, and music.
- Digital service businesses: These businesses provide digital services, such as web design, marketing, and customer support.
- Lead generation businesses: These businesses help businesses generate leads, such as through email marketing and paid advertising.
If you are a business owner in the digital space, you should be aware of the interest in M&A in this sector. If you are considering selling your business, you should reach out to M&A advisors to learn more about your options.
In addition to the companies mentioned above, there are many other Shopify Apps that are viable businesses for solo entrepreneurs. These apps can help e-commerce store owners improve their conversion rates, customer experiences, and ultimately, revenue.
Some of the most popular Shopify Apps include:
- Yoast SEO: This app helps e-commerce store owners optimize their websites for search engines.
- Klaviyo: This app helps e-commerce store owners automate their email marketing campaigns.
- Recart: This app helps e-commerce store owners encourage abandoned cart recovery.
- Bold: This app helps e-commerce store owners create beautiful and responsive product pages.
- Spocket: This app helps e-commerce store owners source products from suppliers around the world.
These are just a few of the many Shopify Apps that are available. If you are an e-commerce store owner, you should explore the different apps that are available to see which ones can help you grow your business.