David Michaels

  • Managing Director
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Biography

David Michaels is a Managing Director of Capstone where he is responsible for managing the firm’s Technology & Telecom Group (TTG). David founded SagePoint Advisors in 2008, a boutique investment banking firm focused on providing M&A advisory services to technology and telecom companies. Prior to founding SagePoint, David was a Co-Founder, Partner and Managing Director at Montgomery & Co., a leading investment bank focused on serving emerging-growth technology companies. David co-founded Montgomery’s investment banking business in 1996 and played an instrumental role in building the business to over $50 million in revenues and 80 employees. Mr. Michaels also ran the firm’s Communications and Digital Media Technology practice areas prior to his departure.

David has intimate knowledge of the strategic landscape, market dynamics and technology underpinnings of several high technology market segments including Mobile Software & Services, Consumer Internet, E-Commerce, Enterprise SaaS, Cloud & Infrastructure Software and Consumer, IT & Telecom Hardware. Prior to joining Montgomery in 1994, David worked as an investment banker at Bankers Trust and prior to that, as a structural engineer at General Dynamics.

Education

The Anderson School at UCLA - MBA - Entrepreneurship

The University of Michigan - BS - Mechanical Engineering

Registrations & Affiliations

FINRA - Series 79 & 63 Registered Invetsment Banking Representative

Industry Coverage

Last twelve month (LTM) merger and acquisition (M&A) activity in the HCM SaaS industry continued its upward trend with 150 deals. Deal volume in Q1 2020 reached a quarterly record of 48 deals as COVID-19 didn’t slow deal activity. M&A targets were valued at a healthy median revenue multiple of 5.4x LTM, slightly below the 5.7x and 5.8x peaks we saw in 2016 and 2019, respectively.Read more

While some software providers have been negatively impacted by the lack of in person events due to COVID-19, the pandemic has largely created positive long-term tailwinds for the industry as nonprofits seek to diversify their fundraising with a heavier focus on digital giving. Recent market trends include the influx of private equity, growing popularity of donor-advised funds (DAFs), and accelerating transition to digital giving.Read more

Enterprise SaaS & Cloud last twelve month merger and acquisition (M&A) activity hit a record 2,156 deals totaling over $180 billion. M&A volume of 657 deals in Q1 2020 was driven by strong January and February deal volume while March activity was only slightly hampered by COVID-19 impact. Read more