William Montgomey

Recent Blog Posts:

M&A Poem
NegotiationCheap buyer insults sellerAngry seller screams NegotiationBuyer wins seller wins joyProblem found cannot close
Posted by William Montgomey, Senior Vice President on 31 December 2009
Make sure you understand the question before you answer
We almost lost a deal in LOI recently when a small thing turned into something pretty big. When asked pre LOI, my client told our buyer his company got an average of 10 leads, meaning demo downloads, a day on their website. The buyer took that to mean 10 leads to follow up and try to close, and... Click here to read more
Posted by William Montgomey, Senior Vice President on 16 December 2009
What happened to the SAAS revolution?
Publicly traded pure play SAAS companies are trading at 2.8x trailing revenue, and more than half are losing money. Traditional software companies are trading at 2.1x trailing revenue, and most are profitable. Two years ago the SAAS peer group traded at 5x to 9x revenue. What happened? Is SAAS... Click here to read more
Posted by William Montgomey, Senior Vice President on 14 December 2009
What did Watson mean?
A while ago I posted the founder of IBM, Thomas Watsons comment, I think there's a world market for about five computers. I got thinking about that as I was sending an email using my Google account and concluded whether he was right depends on how what a computer is. In our world almost every... Click here to read more
Posted by William Montgomey, Senior Vice President on 11 November 2009
The World Market for Computers
"I think there's a world market for about five computers."- Thomas Watson (Founder of IBM)
Posted by William Montgomey, Senior Vice President on 14 October 2009
Financial Planning and Cloud Computing
Last month on the 3rd anniversary of the launch of Amazon Elastic Compute Cloud (Amazon EC2), Werner Vogels, the CTO of Amazon, said, It is amazing to see the impact this service has had on the industry. It is truly disruptive technology and its impact has reached far beyond a pure technology... Click here to read more
Posted by William Montgomey, Senior Vice President on 15 September 2009
"Who knew?" moments
Software technology is interesting; theres lots of near rocket science stuff out there. We see our share and I get how cool some of it is, but I find the vertical market software companies with business solutions the most interesting. Why? Because they often solve problems I didnt know existed, and... Click here to read more
Posted by William Montgomey, Senior Vice President on 19 August 2009
Needed: A clear competitive edge
I sat through an interesting presentation by an executive of a new Corum client. I do that a lot lately. Corum is busy with new clients. The interesting thing about it is the high quality of these companies. We see our share of problems. The economy has not been friendly to the weak, but the strong... Click here to read more
Posted by William Montgomey, Senior Vice President on 12 August 2009
Searching for capital
I was invited to participate in a group to meet in Bend, Oregon with Senator Wyden to talk about his recently passed legislation to fund a Venture Catalyst position for EDCO - Economic Development of Central Oregon. The idea is to fund a mechanism to put investors and entrepreneurs together. For... Click here to read more
Posted by William Montgomey, Senior Vice President on 24 July 2009
Forecasting as you go
Ive been helping, but mostly watching, one of my clients go through the process of forecasting revenue for a financial package intended for the reading pleasure of a potential buyer. Hes doing well, but its a reminder that projections should not be a task done only when youre putting your company... Click here to read more
Posted by William Montgomey, Senior Vice President on 17 July 2009
Independence Day in a small town
I went to the Madras, Oregon, my adopted home town, 4th of July celebration today. It was a lot of fun. The kick off parade had horses a couple of goats, clowns, old cars, kids on farm wagons pulled by really big pickups, mostly sponsored by vacation bible schools, and I think all fire engines in... Click here to read more
Posted by William Montgomey, Senior Vice President on 7 July 2009
The Edison Gap
Have you seen the term The Edison Gap.  I hadnt, but I expect everyone else has.  The phrase was coined by Francis McInerney, the managing director of North River Ventures in NewYork to describe the financial hole technology companies dig when they spend more on R&D than they get back in... Click here to read more
Posted by William Montgomey, Senior Vice President on 3 March 2009
Crisis always offers opportunity
I live in mighty fear that all the universe will be broken into a thousand fragments in the general ruin, that formless chaos will return and vanquish the gods and men, that the earth and sea will be engulfed by the planets wandering in the heavens. Of all the generations, it is we who have been... Click here to read more
Posted by William Montgomey, Senior Vice President on 27 February 2009
Financial news headlines
I was on the net this morning skimming financial news headlines none of them good, when it occurred to me how often I dont see a cash flow statement in the financial packages I get from my smaller clients. Our depressed economy is causing businesses across the board a lot of pain and software... Click here to read more
Posted by William Montgomey, Senior Vice President on 11 February 2009
Aptonyms are the core of a lot of bad puns
I ran across a new word today Aptonym.  I wanted to share with you. Microsoft's spell checker doesn't know it either so I don't feel too bad about my ignorance. What is an Aptonym you ask? An aptonym is the term used for "people whose names and occupations or situations have a close correspondence... Click here to read more
Posted by William Montgomey, Senior Vice President on 5 February 2009
"Shop in your own closet!"
I was wandering around on the Internet this morning and ran across an article about saving money titled "Shop in your own closet!" about magazines. For some reason the title made me think about the people that work at Corum and in every company. Its hard to pass a day without seeing a headline with... Click here to read more
Posted by William Montgomey, Senior Vice President on 30 January 2009
Predicting professional success
I was reading a Malcolm Gladwell blog entry titled Teachers And Quarterbacks this morning. He made a comment I think is relevant to anyone hiring software developers.  Gladwell, in part said ..what matters more than anything in predicting professional success is the quality of the learning... Click here to read more
Posted by William Montgomey, Senior Vice President on 27 January 2009
Time for new beginnings
The new year is upon us and its the traditional time for new beginnings. Im involved in one here in Central Oregon where the nascent tech community is trying to get organized and, I assume by acclimation, I was asked to be the treasurer of our new group. I guess they figured since M&A guys have... Click here to read more
Posted by William Montgomey, Senior Vice President on 22 January 2009

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