Digital Disruption in Australia Review
It’s a short read, but there’s a lot packed in to this very useful guide to mergers and acquisitions in the technology, media and telecommunications sectors specific to Australia.
Written by entrepreneur and leading technology lawyer Nick Abrahams, Digital Disruption in Australia: A guide for Entrepreneurs, Investors & Corporates is a wake-up call for the entire economy.
It is estimated that over 50 percent of Australian businesses are currently affected in some way by digital disruption. It’s not all bad with digital disruption revitalising the tech sector with the greatest rate of change in the last two years. Abrahams provides a well reasoned assessment of the trends impacting Australia including:
- Media companies have been the biggest acquirers of consumer focused online transactional businesses to date but now looking to fill the content gaps
- Australia companies are leveraging the huge need in the small to medium business sector to a global audience with cloud based solutions- think Campaign Monitor and Invoice2go.
- Ad-tech has been achieving remarkable multiples
- Marketplaces continue to be popular investments
- Australian tech startups are considered attractive by US venture capitalists
- Telstra is a big buyer/investor in Australian tech companies – and a possible exit strategy so build a company Telstra wants to buy
For any company wanting to make an exit, Abrahams has useful recommendations on getting the right valuation. Other broader recommendations which I found pertinent to Chief Digital Officers were:
- Treat UX designers like gods. Customer experience trumps and pushes government and the law (think AirBnB and Uber)
- Privacy will be tradeable. Customers will trade privacy for services and/or value
While Nick is the ultimate slashie: highly regarded technology lawyer, entrepreneur, investor, industry commentator, comedian and Hollywood executive, he knows his stuff having worked on over $3 billion of technology transactions in the last four years. The book is available from the usual booksellers. Recommended reading!