Software M&A Blog

As we discussed in a recent webcast, the Executive Summary is possibly the most important document you will ever craft in business. You and your adviser need to write a concise, clear Executive Summary that crystalizes the unique opportunity your company presents to buyers. This document should follow the best practices we have discussed, so mapping your presentation in alignment to the... Click here to read more

Tuesday, November 21, 2017 - 10:25
Posted by Robert Griggs, Vice President
The importance of knowing why you're selling
It is still with some surprise that despite talking to many CEOs about their plans to sell their companies, when it comes down to it, a lack of clarity as to “why” sometimes still exists. The initial conversations are usually carried out in a confident tone and manner. Listening to the journey they... Click here to read more
Posted by Peter Prince, Vice President on 20 October 2017
Tips for Presenting to Acquirers: Limit participation to critical team members
As anyone who has been involved with an exit can tell you, presenting to potential acquirers demands a clear, concise, and most importantly, uniform presentation. You may feel like the power-move would be to bring your entire team into meetings, but that would do more harm than good. With so many... Click here to read more
Posted by Jeff Riley, Vice President on 17 October 2017
Common M&A Misconception: I don’t want to go to market too early
Nathan Rothschild famously said, “I made my fortune by selling too early”.   We get it. You believe in your company, your business and your market. You have to have this belief or you (and your company) wouldn’t have gotten this far. This is a good thing, not a bad thing.   At the same time,... Click here to read more
Posted by Joel Espelien, Vice President, Client Services on 28 July 2017
Metrics to keep you up at night
I'm very pleased to have joined the Editorial Board Advisory Board for the newly launched Software Business Magazine. This new publication, built on decades of experience at sister publication Channel Executive Magazine (formerly Business Solutions), fills a vital niche for the software and... Click here to read more
Posted by Timothy Goddard, Executive Vice President of Marketing on 27 July 2017
Common M&A Misconception: Preparation starts when you decide to sell
When should you start preparing to sell your company?   It’s a common question, but one that has major implications on the future of your business and success of an exit. If you’re at the point where an exit seems like the next logical step, you shouldn’t wait any longer to start with the... Click here to read more
Posted by Nina Seghatoleslami, Vice President, Client Services on 14 July 2017
Common M&A Misconception: I already know my buyer
In today’s highly competitive market, it is easy to envision a future in which a large competitor comes knocking on your door, aggressively pursuing an acquisition of your company. As we’ve said before, however, this never leads to an optimal outcome. The buyer that you think would make a perfect... Click here to read more
Posted by Jim Perkins, Executive Vice President on 7 July 2017
Common M&A Misconception: We’re not SaaS, so buyers won’t bite
Today’s M&A market is full of companies in various sectors. With a constant flow of technological innovation, players in the tech industry will continue to be in high demand by strategic buyers and private equity firms alike. As disruptive trends continue to change the M&A landscape, one... Click here to read more
Posted by Jeff Riley, Vice President on 30 June 2017
The reverse Amazon: What brick-and-mortar retailers need to know in light of Amazon's acquisition of Whole Foods
The business world was turned upside down last week by Amazon’s announcement of its $13.4 billion acquisition of Whole Foods. Supermarket stocks plummeted on the news with uber-analyst Jim Cramer predicting that Amazon will dominate the US grocery market within the next two years. Is the end truly... Click here to read more
Posted by Joel Espelien, Vice President, Client Services on 21 June 2017
Common M&A Misconception: “We should raise a round before selling” (Part 1)
Having a strong balance sheet prior to entering the market for an M&A event is important. You want to ensure that your cash position is strong and will remain healthy as you are out in the market selling your company and growing your business.   The need to raise another round of funding prior... Click here to read more
Posted by Dave Levine, Senior Vice President on 16 June 2017
Yahoo-Verizon Timeline
Yesterday’s close of Verizon’s Yahoo acquisition is being hailed as the end of an era—but it is also the end of a long, thorough, and painstaking M&A process by Yahoo and their investment bankers. Joel did a good job a couple months ago of outlining the story of the sale, and all its twists and... Click here to read more
Posted by Timothy Goddard, Executive Vice President of Marketing on 14 June 2017
Escrow Provisions in M&A Transactions, Part 2
As described in the previous post, escrow accounts are funds carved out of the seller’s proceeds for the benefit of buyers in order to secure indemnification obligations under M&A transactions. However, there are a couple of additional points that the parties may wish to consider.   The first... Click here to read more
Posted by Joel Espelien, Vice President, Client Services on 12 June 2017
Escrow provisions in M&A Transactions, Part 1
While parties to an M&A transaction do not expect to encounter major post-closing liability issues, transactions involving privately held sellers tend to contain escrow provisions to address buyer concerns over the seller’s financial ability to satisfy indemnification provisions contained in... Click here to read more
Posted by Joel Espelien, Vice President, Client Services on 9 June 2017
Common M&A Misconception: “I need to launch my next version, then sell”
As you start preparing for the sale of your company, there are myriad things to consider. Is your product unique enough to spark interest with buyers? Can you convey the value that a potential acquisition will bring? Do you, as the CEO, simply have the time for an acquisition? One common mistake I... Click here to read more
Posted by Andy Hill, Regional Director on 6 June 2017
Common M&A Misconception: "We'll get locked into a bad deal"
So here you are, several months into discussions with the first buyer that approached you, nearing a deal. Initial talks promised loads of cash up front and a gratuitous earnout. The whole thing has taken up nearly all of your time, it has put extraneous stress on you, your board of directors and... Click here to read more
Posted by Steve Jones, Senior Vice President on 30 May 2017
Common M&A Misconception: "We've lost key people, so we can't sell now"
Technology companies, more than almost any other type of company, rely upon employees as the engine of growth and success. They count on unique individuals with vision, creativity, expertise, talent and charisma to spot opportunities, build innovative products and adapt to fast paced markets. The... Click here to read more
Posted by Jeff Brown, Senior Vice President, Client Services on 25 May 2017
Common M&A Misconception: We have conflict to resolve first
Let’s face it - being an entrepreneur, building and running a business is hard and not for everyone. Not only is it a lot of work, but it can put a tremendous amount of stress on everyone involved. When this stress begins to manifest itself within a company’s leadership, executive management and... Click here to read more
Posted by Robert Griggs, Vice President on 23 May 2017
Common M&A Myth – “We can’t sell because we’re not profitable”
One of the most common mistakes I see executives make when considering an exit is thinking that they need to be profitable to garner interest from buyers. While it certainly helps, profitability (or the lack thereof) rarely determines the success of an exit.   Most tech companies run deficits early... Click here to read more
Posted by Ivan Ruzic, Vice President on 18 May 2017

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