We are delighted to have provided financial due diligence services for Push Technology's £10 million funding round from Maven Capital Partners and Guinness Asset Management.

Push Technology is a leader in real-time data streaming and messaging solutions for business applications worldwide. These solutions are primarily provided using the Diffusion and Diffusion Cloud real time API management platforms.

How we helped

Our Corporate Finance team provided financial due diligence services including:

• Investigating the financial aspects of the target business

• Highlighting key findings and potential deal breakers

• Providing assurance to the investment teams by reducing the potential risks associated with the transaction

Our key insights related to the work performed on Push Technology's revenue bridges from actual sales, to forecasted 2020 and 2021 projections. The company is continuously expanding, selling to an impressive amount of large institutions. Our analysis of Push Technology's pipeline allowed the investors to fully understand the position of the business and its potential for the future.

We also carried out a detailed tax assessment, including the review of R&D tax credits, VAT and share options. This helped to ensure that Push Technology is fully compliant with legislation, has no historic tax liabilities and is structured correctly for future growth. 

Challenges overcome

Due to the size of new revenue contracts, there is the  potential for large swings in forecasts depending on how well the pipeline converts, which means that accurate forecasts are typically more difficult to produce. We integrated statistical analysis to reinforce  this and prepared a number of scenarios applied to the model and the balance sheet, to make the investors aware of any potential outcomes., 

Clients might assume that due to COVID-19 growth capital transactions are on hold. However, tech companies like Push Technology are still growing in the current climate and they will continue to assist their customers to provide real-time communications. Maven Capital Partners and Guinness Asset Management identified this opportunity and were happy to complete the investment.

"We are in the enviable position of serving the rapidly expanding markets for real-time web, mobile and Internet of Things communications. The added financial support and counsel of Maven Capital Partners and Guinness Asset Management will allow us to execute our vision faster." Sean Bowen, CEO and Co- Founder at Push Technology.

Next steps for Push Technology

This investment will enable Push Technology to reach their growth projections faster than originally forecasted and continue to produce ground-breaking technologies, even during the pandemic period.