What is the role of information in changing the world?
For companies like FiscalNote Holdings Inc. (NYSE: NOTE), this consideration is the cornerstone of its business. As an agency specialized in collecting data on the regulatory processes in the U.S. and abroad, FiscalNote’s existence is a testament to the power of quality information.
FiscalNote belongs to a growing library of companies specializing in the timely acquisition and creative distillation of information. These companies have molded information to offer a variety of services ranging from automating finances such as Workiva Inc. (NYSE: WK) to consumer behavioral analysis like Splunk Inc. (NASDAQ: SPLK).
For FiscalNote, regulatory data is the foundation of the work. Policies can have a radical impact on how businesses operate. Take the Roe versus Wade case, which in 1973 created a whole new industry for abortion-seeking individuals. FiscalNote is dedicated to collecting valuable regulatory information and detailing how it would affect its customers’ businesses and operations.
As the U.S. midterm elections creep closer, FiscalNote’s work may be more valuable than ever.
Fortunately, the company has reportedly prepared for this moment. In an episode on SPACInsider, FiscalNote CEO Tim Hwang outlines the company’s recent acquisitions, its cash-rich position and the favorability of market valuations as driving forces in the company’s quest for market share.
Leveraging Market Conditions
The past two years have seen shifts in the requirement for large-scale data.
Brewing market uncertainty and the COVID-19 pandemic provide some of the strongest catalysts for this growing demand for data. As discussed in the podcast episode, Hwang believes the pandemic increased the number of touchpoints governments at every level have on business operations. Additionally, poor market conditions and whipsawing currency valuations are posing significant risks for businesses worldwide.
FiscalNote provides services that help businesses tackle and understand their issues through data. The company says it has undergone significant growth to improve its service, including prioritizing key conditions in getting the right SPAC deal for it, and that it is already taking advantage of being a publicly-listed company. Specifically, Hwang highlighted the following developments:
The acquisition of DT-Global Business Consulting, an Austria-based market intelligence company, that expands FiscalNote's existing Geopolitical & Market Intelligence solutions business, shortly after its initial public offering (IPO).
The expansion into alternative data — financial information covering the economic activity that isn’t covered by equities and traditional markets. Labor, wage and credit card expenditure data are some examples.
The acquisition of Aicel, a South Korea-based alternative data solutions and software company that enhances FiscalNote’s Data-as-a-Service offerings on a global scale.
Commenting on the business’s merger and acquisition (M&A) strategy, Hwang said, “We are expanding the scope of our products and services to be able to drive continued organic growth well into the future.”
Hwang sees the M&A process as simple product development — finding companies that would enrich FiscalNote’s data collection and analysis and acquiring them is a clear-cut way to improve the business’s database and reach.
Hwang says that current market conditions, which have sent business valuations well below book and cash values, represent an incredible opportunity for FiscalNote, one that the company is taking advantage of via its acquisitions. Armed with $90 million in cash and a flexible credit facility driven by the company’s annual recurring revenue, Hwang believes the company has both the right management team and the right financials to take FiscalNote to the next level.
As midterm elections creep around the corner, the importance of regulatory data and information may reach new heights.
Hear more about how FiscalNote is tackling the situation here.
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