Software M&A Blog

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... Click here to read more

Wednesday, June 21, 2017 - 11:57
Posted by Joel Espelien, Vice President, Client Services
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, 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, Senior 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, 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 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, 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
Private Equity Buyers Making Major Changes
In my last post, I shared how Private Equity firms have changed the landscape of buyside M&A. Now, let’s take a look at how they’ve been able to make this move.   In the past, the platform companies did most of the work, with the PEs playing the more passive role of “financial backer”.  However... Click here to read more
Posted by Bruce Milne, CEO on 3 May 2017
The Optimal Outcome: What private company CEOs can learn from the Yahoo-Verizon deal
Yahoo’s recently completed sale to Verizon for nearly $4.5B is clearly a major event in the world of technology M&A. Despite the size, drama and media attention such deals receive, however, the fundamental principles that go into achieving an optimal outcome remain the same, which means... Click here to read more
Posted by Joel Espelien, Vice President, Client Services on 26 April 2017
Tech M&A Dominated by Strategic Buyers? Not Anymore
Due to a record number of cash offers we received in the first quarter of 2017, I thought it a good idea to survey our clients. I asked them, "Were there any surprises in the process?" Their responses confirmed a trend that we at Corum have seen recently: they were surprised that the most... Click here to read more
Posted by Bruce Milne, CEO on 24 April 2017
Build It and They Will Come
As the CEO of your business, one of your responsibilities is to continuously be evaluating all of your options for growth. Whether you are growing organically or considering acquisitions, your business is either growing or shrinking relative to your position in the market. You are also responsible... Click here to read more
Posted by Dave Levine, Vice President on 5 April 2017
Founders & Ceos: Why You Should Cozy Up To Your Investment Banker
A couple of weeks ago, on a whim, I called a company CEO to see if I could schedule a few minutes of his time on the phone. I wanted to talk about his future plans for this very exciting company he was running. Having not heard of Corum Group, his response was, “Tell me in thirty seconds or less... Click here to read more
Posted by Ivan Ruzic, Vice President on 29 March 2017
Getting Your House in Order
"That's a good idea," one of the executive says in the exec meeting, promptly followed by, "It's about time and I think we're ready to sell," says another. So your company starts the M&A process and plans on speaking to an advisory M&A firm to get an idea of process, costs and timeframe.  ... Click here to read more
Posted by Peter Prince, Vice President on 21 March 2017
2017 Top 10 Disruptive Tech Trends: Data Security
“The only truly secure system is one that is powered off, cast in a block of concrete and sealed in a lead-lined room with armed guards.” – Gene Spafford, Purdue University   Until the day comes when someone develops an unbreachable security system, Data Security will continue to be a top tech... Click here to read more
Posted by Jon Scott, Managing Director, Corum Group, Int'l on 16 March 2017
2017 Top 10 Disruptive Tech Trends: Omni-channel Sales
How many channels does your company use to reach its target audience?   All businesses, whether B2B or B2C, are seeking to bring their persuasion and purchasing as close to the customer as possible. This trend is accelerating personalization, analytics and engagement to make the customer experience... Click here to read more
Posted by Peter Prince, Vice President on 14 March 2017

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