tag:blogger.com,1999:blog-6748877443699290050.post5969061740680814625..comments2024-03-27T23:43:31.674-07:00Comments on eMpTy Pages: Private Equity, The Translation Industry & LionbridgeKirti Vasheehttp://www.blogger.com/profile/16795076802721564830noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-6748877443699290050.post-17235497463247378292017-01-18T04:47:11.406-08:002017-01-18T04:47:11.406-08:00Very interesting article. Thank you guys for shari...Very interesting article. Thank you guys for sharing your thoughts!Roman Zelenkahttp://www.zelenka-translations.comnoreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-86240367482550649422017-01-13T13:33:14.663-08:002017-01-13T13:33:14.663-08:00Here is more detail from SEC Proxy statement that ...Here is more detail from SEC Proxy statement that shows that LIOX was really a very unappetizing acquisition, (low value) and several suitors retreated very quickly as the price inched it's way up. This suggests that our analysis in this blog was pretty much on target.<br /><br />https://slator.com/ma-and-funding/inside-process-saw-lionbridge-sold-private-equity/Kirti Vasheehttps://www.blogger.com/profile/16795076802721564830noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-76882138321085229542017-01-06T12:41:09.703-08:002017-01-06T12:41:09.703-08:00To understand what can happen when PE gets involve...To understand what can happen when PE gets involved here is an example: ULG where the founder is now suing the investors.<br /><br />https://slator.com/industry-news/how-ulgs-investors-ousted-jeff-brink/Kirti Vasheehttps://www.blogger.com/profile/16795076802721564830noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-30840108922331774712017-01-03T12:14:57.833-08:002017-01-03T12:14:57.833-08:00The best article I've read in a while.. Thanks...The best article I've read in a while.. Thanks a lot Kirti Vashee for the wonderful analysis.Mac Salamnoreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-288506494675657532016-12-30T10:08:27.172-08:002016-12-30T10:08:27.172-08:00Excellent insights. I'm reposting my comments ...Excellent insights. I'm reposting my comments from LinkedIn in reply to Renato's article.<br /><br />As an 'enabler' of international business, the translation industry is up for grabs. There's going to be plenty of action not just between LSPs but in technology companies servicing them and branching out horizontally to other industries. I wrote about Big Data companies acquiring machine translation companies back in 2014 (http://blog.pangeanic.com/2014/08/10/twitter-ebay-facebook-big-data-companies-want-to-own-machine-translation/). It still makes sense as MT enables the companies mentioned in the blog to monitor, secure and control their international channels. The Amazon/Safaba deal last year made complete sense, and it was not because Amazon wanted to save money on its MT bill. There's a real war for NLP talent between FB, Google and with global B2C and E-commerce interests Amazon had to join the frey.<br /><br />Kirti is very right when he mentions "the sweet spot for private equity is a company doing okay in an industry whose fortunes are about to improve dramatically." The point, though, is what technology or advantage did Lionbridge have to make it so attractive. Certainly not past margins, but no PE firm would miss a cent in the valuation and due diligence. Surely HIG has gone through all the books to the dot in every i. <br /><br />Lionbridge's workflow system is very neat, but that cannot be the reason. The top 10 LSPs are in the game, in different degrees or already owned by private equity. Consolidation means deals, which translates into investor revenue.<br /><br />I favour the view of a general market with plenty of M&A action to come where either a resale or further acquisitions would increase value.Manuel Herranzhttp://blog.pangeanic.com/noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-89783655840299040402016-12-27T03:25:23.858-08:002016-12-27T03:25:23.858-08:00I share Kirti's doubts, and possibly I'm e...I share Kirti's doubts, and possibly I'm even more doubtful.<br />Not only is TransPerfect a global-scale taditional translation agency extensively applying the buy-low-sell-high mantra, it has been adding almost nothing to the industry in terms of innovation, especially from a technological standpoint.<br />Also, hiring Mr. Logoport to be (presumably) its CTO tells much about the vision of its management team.<br />Claiming to be an overall winner betrays a very narrow view of the market, as all major players do not sum more than 20% of it. Certainly the market is growing, but there's a considerable difference between volumes and revenues, not only in terms of growth.<br />In short, TransPerfect is the perfeft pray for a takeover: it's possibly profitable on services and might ensure a steady cashflow, and the soap opera underway is going to help a court ruling in favor of a solid buyer.<br />Luigi Muziihttps://www.blogger.com/profile/11617962606487603486noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-14131439239074808102016-12-24T14:51:31.459-08:002016-12-24T14:51:31.459-08:00I am seriously humbled by the quality of the peopl...I am seriously humbled by the quality of the people, leadership, vision and value-proposition to clients we have at TransPerfect. Having been through my share of LSPs and having interacted with most, I stand by my assessment and hope you'll buy me a beer when that happens! :) Warm regards!Andrei Schwartzhttps://uk.linkedin.com/in/andreischwartznoreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-23739546798352596822016-12-24T14:46:26.642-08:002016-12-24T14:46:26.642-08:00I seriously doubt that TransPerfect is "overa...I seriously doubt that TransPerfect is "overall winner" in the translation industry -- my bet would be on smaller LSP's ($25M to $50M) who are specialists and considered the most valuable thus far. The odds of a PE takeover of Transperfect are quite high, given the management drama which, believe it or not, does reduce the value of the company for many, and in fact, helps to justify lower valuations.Kirti Vasheehttps://www.blogger.com/profile/16795076802721564830noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-86591522158354708262016-12-24T14:45:20.044-08:002016-12-24T14:45:20.044-08:00Interesting take on recent developments in the tra...Interesting take on recent developments in the translation industry. TransPerfect is the overall winner and best placed to be the first to get to $1 billion per yearAndrei Schwartzhttps://uk.linkedin.com/in/andreischwartznoreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-79688695553345762016-12-23T18:06:38.911-08:002016-12-23T18:06:38.911-08:00Great analysis by both. Thank you Kirti and Luigi....Great analysis by both. Thank you Kirti and Luigi. Renato Beninattohttps://www.blogger.com/profile/08728564802357051245noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-72270923971810335892016-12-23T11:53:17.096-08:002016-12-23T11:53:17.096-08:00Thanks for sharing your analysis, Kirti Vashee. In...Thanks for sharing your analysis, Kirti Vashee. Interesting to see how PE invests into niche industries.Birte Loenneker-Rodmanhttps://de.linkedin.com/in/birterodman/ennoreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-76765387836302238652016-12-22T16:15:47.653-08:002016-12-22T16:15:47.653-08:00Thanks for sharing your view on it.Thanks for sharing your view on it.Anonymoushttps://www.blogger.com/profile/08575313890467427588noreply@blogger.comtag:blogger.com,1999:blog-6748877443699290050.post-57952198209269023812016-12-21T12:56:20.906-08:002016-12-21T12:56:20.906-08:00Great article. Expect the comment about Donald Tru...Great article. Expect the comment about Donald Trump.David Grunwaldhttps://www.gts-translation.comnoreply@blogger.com