网络安全季度市场更新

Fourth Quarter 2024 Keith SkirbeManaging DirectorSan FranciscoBobby WolfeDirectorMiamiSydney ScaddenVice PresidentCharlottePatrick WongAssociateSan FranciscoSean FitzgeraldManaging DirectorNew YorkChris HebbleManaging DirectorLos AngelesDavid KelnarManaging DirectorU.K.Greg WerntzDirectorSan FranciscoGlobal Cybersecurity Team2U.S. CyberTeamCapitalMarkets GlobalCyber ReachCybersecurityTechnologyExpertise Malte AbramsManaging DirectorFrankfurtRaymond FröjdManaging DirectorStockholmChristie AdamsAssociateParis Mark SmithDirectorU.K.IdoZakaiManaging DirectorTel AvivGabrielle WorrallVice PresidentU.K.Joshua HolmesSenior Vice PresidentDallas Sara NapolitanoManaging DirectorParisSameer JindalManaging DirectorMumbaiSamuel PattisonFinancial AnalystU.K. Joseph MillerVice PresidentSan FranciscoAlex MaffeiFinancial AnalystSan Francisco (5.0%)0.0%5.0%10.0%15.0%10/110/1610/3111/1511/3012/1512/30Q4continued to exhibit signs of an improving M&A market,principally driven by a higher volume of deals and an increase inthe velocity of moderately large transactions (<$300 million).Sustained growth in the volume of capital investments implies agrowing investor appetite, as confidence develops around the2025 macroeconomic outlook.Weanticipate activity to continue rising in 2025, driven byan improving economy and lower interest rates with a highaccumulation of dry powder.This past quarter,BroadcomandWithSecuresaw the greateststock price movements, with the former surging 38.4%—reaching its all-time high during the quarter—and the latterfalling 26.2%.Executive Summary:Q4 2024 in Review3Executive SummaryQ4 2024 Report ThemesSource: S&P Capital IQ as of December 31, 2024.(1) Houlihan Lokey Cybersecurity Index includes S, CYBR, ZS, CRWD, PANW, OKTA, TENB, FTNT, AVGO, MITK, RSKD, RPD, GEN, CHKP, FFIV, QLYS, 4704, SWI, CGNT, OSPN, TLS, FSECURE, and WITH.A Strong Quarter for Public CompaniesM&A Volume Jumps, Underscored by More DealsVolumeNumber ofDealsIndexed Equity Returns8.4%NovemberDecemberOctoberHoulihan Lokey Cybersecurity Index(1) Machine identities are essential for securing cloud-native environments.AI-generated security code is introducing supply chainvulnerabilities.Data security platforms represent the new frontierbetween AI and cybersecurity.Q4 ’24$3.5B93$825M Organizations are pursuing a proactive approach tocybersecurity, leveraging threat intelligence solutions toinform decision-making.Ransomware continues to be a prevalent securityconcern, with threat actors leveraging AI to increase thevolume of cyberattacks.Organizations are determined to remain agile but desirecomplete, unencumbered cybersecurity coverage.Financing Volume Driven by Big Equity ChecksQ4 ’24VS. Q4 ’23VS. Q4 ’22Volume$3.9B43.0%20.1%Number ofDeals1880.5%3.1%$300M$950M$300M VS. Q4 ’23VS. Q4 ’2280.9%44.3%89.8%47.6%$450M$400M 01PerspectivesFrom the Front04About Houlihan LokeyTable of Contents 03Conferencesand Events 02Capital Marketsand Trends Update05Appendix Perspectives From the Front Houlihan Lokey 2024 Cybersecurity Transaction Summary6Citizen Identity SolutionsBusinesshas been acquired bySellside Advisora portfolio company ofhas acquireda portfolio company ofBuyside Advisora portfolio company ofhas been acquired bySellside Advisora portfolio company ofhas been acquired bya portfolio company ofSellside Advisorhas received a strategicinvestment fromhas integratedBuyside Advisorhas merged witha portfolio company ofExclusive Placement Agenthas integrated Notable HighlightsHoulihan Lokey’s Cybersecurity team wasresponsible for the successful close of eightmandates throughout the year, reaffirming theteam’s sector expertise and connectivityamong strategic and financial parties.Demonstrate presence and global coverage ofHoulihan Lokey’s Cybersecurity team withtransactions across North America, Europe,Latin America, and the DACH region.Experience across transaction structures androles; Houlihan Lokey finds a way to add valuefor clients throughout the business lifecycle.Strong momentum going into 2025 positionsthe Cybersecurity practice for another banneryear. Cybersecurity Predictions for 20257Shortage of AI-ProficientProfessionals34% of surveyed security teams referenced a lack of AI-skilledcybersecurity talent, especially relating to the handling of newattack avenues and vulnerabilities.Comprehensive training, particularly around the deploymentof AI, is quickly becoming an essential component ofcybersecurity preparedness.GRC Solutions Arean OrganizationalNecessityGRC solutions will be increasingly utilized to enhance internalcontrols, manage business risk, ensure compliance, and drivestrategic alignment.AI/ML deployments within GRC will further the valueproposition, enabling organizations to proactively managecybersecurity posture and consolidate data sources.Behavioral AnalyticsIs a Growing Frontier30% of survey respondents considered insider threats to be amajor risk factor to their organizations’ cybersecurity posture,reve