John Melotte

Recent Blog Posts:

Interest in M&A in the UK
Corum has just run an M&A update in London. There was double the normal number of registrants. In fact, it has been a good M&A market for well over a year. The cash held by strategic buyers is driving this. Falling inflation, rising business confidence and the feel-good factor of the... Click here to read more
Posted by John Melotte, on 20 March 2012
The key to higher valuations
Know yourself, your market, your competitors, and your buyers Choose the right time do not miss the consolidation wave in your sub-sector If you sell software then demonstrate strong revenue growth & upside If you sell software services then demonstrate solid earnings and staff utilisation... Click here to read more
Posted by John Melotte, on 6 February 2012
Israel rising
For such a small country, Israel often gets more than its share of headlines, and what not everyone knows is that it also has more than its fair share of software technology companies.   Israel has 8 million citizens living in a country similar in size to New Jersey or Belgium, but it is second... Click here to read more
Posted by John Melotte, on 14 December 2011
What is driving the current M&A market
What is driving the current Software and IT service M&A market? An answer in one word: Cash. The Corum Index (as reported on the monthly Corum Webinars) shows that 57% of announced deals are all cash. Private Equity has over $500 billion to invest. If they do not invest they have to give it... Click here to read more
Posted by John Melotte, on 1 November 2011
Whose taxes will be hit?
There is a good lead article in The Economist, September 24,Hunting the rich. The top 1% of earners take home 20% of pre-tax income. Although they pay a disproportionate amount of tax (40% of the total), if you want to raise tax dollars there is an obvious group to go after the rich. As... Click here to read more
Posted by John Melotte, on 30 September 2011
Bad markets, good deals
Ernst & Young have tracked the steady increase in the value of technology M&A since 2008, with a 75% increase in the second quarter of this year. We are now in the third quarter and we have seen two real mega-deals: Googles grab of Motorola for $12.5bn, and HPs $10.2bn acquisition of... Click here to read more
Posted by John Melotte, on 2 September 2011
Importance of recurring revenue
If your software business has a traditional licence-service-maintenance revenue model, do keep in mind how potential buyers will view the recurring revenue from maintenance.   * A low attrition rate means that your clients value the maintenance that you provide. How has the attrition rate changed... Click here to read more
Posted by John Melotte, on 25 July 2011
McIlroy wins US Open
Rory McIlroy recently became the youngest US Open champion since Bobby Jones in 1923 and the youngest major winner since Tiger Woods triumphed at the Masters in 1997. McIlroy led from start to finish, carding 65, 66, 68, 69 to post a tournament record total of 16-under 268, four better than the... Click here to read more
Posted by John Melotte, on 24 June 2011
McIlroy wins US Open
Rory McIlroy recently became the youngest US Open champion since Bobby Jones in 1923, and the youngest major winner since Tiger Woods triumphed at the Masters in 1997. McIlroy led from start to finish, carding 65, 66, 68, 69 to post a tournament record total of 16-under 268, four better than the... Click here to read more
Posted by John Melotte, on 24 June 2011
Spotlight on the Cloud
Corum is a platinum sponsor for the World Financial Symposiums, which runs conferences three times a year in Silicon Valley, New York and London. These events have always received great reviews from delegates. Delegates are the leaders of technology companies - smaller sellers and larger buyers;... Click here to read more
Posted by John Melotte, on 10 May 2011
Why M&A advisors make a crucial difference
Although many (but not all) of our clients will know their global market better than we do, buyers will often come from associated markets where there is a complementary fit. It is our job to cover these associated areas. Also, we comprehensively research our clients specific sector in case they... Click here to read more
Posted by John Melotte, on 18 March 2011
Mini-merger trends (March 2011)
One of the discussion points at a recent Corum webinar was the current trend of mini-mergers. In a market where megadeals and IPOs are unlikely, smaller scale deals provide a useful way to help your company continue to grow, even in tough economic circumstances. In our webinar, we focused on three... Click here to read more
Posted by John Melotte, on 9 March 2011
360 Scheduling acquired by IFS
At the beginning of October, 360 Scheduling, based in the UK, became Corum's latest client to successfully sell, in this case to the UK subsidiary of the Swedish company, IFS. 360 has some great Mobile Resource Management technology, solving the largest and most complex scheduling problems,... Click here to read more
Posted by John Melotte, on 3 November 2010
Time to take the medicine in the UK
The UK general election resulted in a seemingly unlikely coalition of Conservatives and Liberals taking over from Labour. Fortunately, they seem to have reached a sufficiently broad agreement to allow the drift and uncertainty of coalition politics to be avoided this could have been a disaster for... Click here to read more
Posted by John Melotte, on 17 September 2010
Missing your numbers during M&A
A full M&A process should take nine or more months; it is quite possible that there will be contact with seriously interested buyers lasting six months.  A demanding forecast will help push interested buyers to give their best offers, but what should you do if you start to miss your forecast... Click here to read more
Posted by John Melotte, on 18 August 2010
Debt and uncertainty in the UK
Like most of Europe, the UK is coming out of recession. Given the largesse of the financial stimulus that was provided and the poor state of the public finances going in to what was a deep recession, the UK has been left with a larger deficit than most European countries. Fortunately, our overall... Click here to read more
Posted by John Melotte, on 11 May 2010
Timing is everything
They say that timing is everything. Valuations are on their way up, so when will they reach their peak? Well, past evidence would suggest that valuations build over five or more years and the low point was in the first quarter of 2009. But this is missing the point. The market in general may be... Click here to read more
Posted by John Melotte, on 7 May 2010
How can I value my company?
Recently I was asked by a CEO how they could value their early-stage technology business. The company was looking to close its first round of institutional investment and needed to settle on a price of the deal.   The simplest way is to compare one company with another. Unfortunately, although... Click here to read more
Posted by John Melotte, on 22 February 2010

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