Every category of financial technology
Fintech spans a wide range of business models, each with distinct regulatory requirements, valuation frameworks, and buyer profiles. Acquiry has advised across the full fintech spectrum.
Payment Processing
Payment gateways, acquirers, ISO/MSP businesses, payment facilitators, and merchant services. Volume-based businesses with strong recurring revenue characteristics.
Digital Lending
Consumer lending platforms, SME lenders, BNPL businesses, and marketplace lending. Credit quality, loan book performance, and regulatory licensing are key value drivers.
Neobanks & Challenger Banks
Digital-first banking platforms with full or limited banking licences. Complex regulatory considerations, significant infrastructure investment, and strategic acquirer interest from incumbents.
Embedded Finance
Banking-as-a-service, embedded payments, and embedded insurance platforms. API-first businesses enabling non-financial companies to offer financial products.
Remittance & FX
Cross-border payment platforms, money transfer operators, and FX businesses. Licence-heavy, operationally complex, and increasingly attractive to strategic acquirers.
Regulatory Technology
KYC, AML, compliance automation, and fraud detection platforms. Growing demand from financial institutions and strong strategic acquirer interest from banks and payment networks.
Navigating fintech regulation in M&A
Regulatory complexity is the defining feature of fintech M&A. Licence transfers, change of control approvals, and ongoing compliance obligations affect every transaction. Acquiry understands these dynamics and structures deals accordingly.
Australia
ASIC / APRAAustralian Financial Services Licences, ADI authorisations, and payment system participation. ASIC change of control notifications and APRA prudential requirements.
United Kingdom
FCAFCA authorisation, e-money institution licences, and payment institution licences. Change in control applications typically take 3 to 6 months and require detailed business plans.
European Union
EBAPSD2 compliance, EMI licences, and passporting rights. Post-Brexit complexity for UK-EU cross-border transactions. Malta, Lithuania, and Ireland as common licensing jurisdictions.
Singapore
MASMajor Payment Institution and Standard Payment Institution licences. MAS change of control approval required. Singapore as a regional hub for APAC fintech acquisitions.
UAE
CBUAE / ADGM / DIFCCentral Bank of UAE licences, ADGM financial services permissions, and DIFC regulated activities. Growing fintech acquisition activity from regional strategic buyers.
United States
State + FederalMoney transmitter licences across 50 states, FinCEN registration, and OCC charters. Complex multi-state licence transfer processes requiring specialist legal coordination.
Fintech valuation frameworks
Fintech valuation varies significantly by business model. The right framework depends on revenue type, regulatory status, and growth profile. Applying the wrong methodology leads to mispriced deals.
| Business type | Primary metric | Typical multiple range | Key value drivers |
|---|---|---|---|
| Payment Processor | Total Payment Volume (TPV) | 0.5x to 3x TPV | Volume growth, merchant retention, take rate |
| Digital Lender | Loan Book / Revenue | 0.8x to 2.5x book value | Credit quality, NPL ratio, cost of capital |
| Neobank | Revenue / Deposits | 2x to 8x revenue | Account growth, ARPU, licence value |
| BaaS / Embedded Finance | ARR | 4x to 12x ARR | API volume, partner count, NRR |
| RegTech SaaS | ARR | 5x to 15x ARR | Regulatory tailwinds, customer concentration |
| Remittance / FX | Revenue | 1.5x to 5x revenue | Corridor coverage, licence portfolio, volume |
Fintech-specific due diligence considerations
Fintech due diligence goes beyond standard financial and legal review. Regulatory, compliance, and technology dimensions require specialist assessment.
Licence Status & Transferability
Confirming licence validity, change of control provisions, and the timeline and cost of regulatory approval for the proposed transaction structure.
AML / KYC Compliance
Review of AML program, KYC procedures, SAR filing history, and regulatory examination results. Non-compliance is a deal-stopper for most buyers.
Payment Scheme Memberships
Visa, Mastercard, and other scheme memberships are not automatically transferable. Buyer eligibility and transfer timelines must be assessed early.
Technology Infrastructure
Core banking system, payment processing infrastructure, API architecture, and data security. Legacy infrastructure creates integration risk and post-acquisition cost.
Customer Data & Privacy
Data residency requirements, privacy law compliance across jurisdictions, and data portability obligations. Financial data is subject to heightened regulatory scrutiny.
Regulatory History
Past enforcement actions, regulatory correspondence, and outstanding remediation obligations. Undisclosed regulatory issues are a common source of post-close disputes.