Established in 1985, today, under the leadership of Bruce D. Milne founder and CEO, the Corum Group is recognized as a world leader in assisting Software and IT companies in need of M&A advice.
In an interview with Business Today, Tanya Froehlich, Branch Manager of Corum Zurich Office, outlined the philosophy behind the companys year-on-year success:
How is the current economic climate affecting the Software/IT sector?
"The current recession is affecting all sectors of the marketplace and Software and IT are no exception. Whilst weve seen significant declines of 40%, 50% and more in other industries, Software and IT companies have fared better. Our industry has shown resilience for two key reasons; typical software companies have less overhead and fixed costs compared to traditional companies, the sector has enjoyed considered success in the past 3 or 4 years, with many companies able to set funds aside for a rainy day. Well, the storm clouds are definitely gathering!"
What effect is this having on mergers and acquisitions within the market?
"Negotiations are getting tougher, with sellers understandably becoming hesitant to accept offers 25% or more lower than last year. Financial buyers are out of the picture but positive deals are still being made, with several of our clients currently in LOI. Were tracking about a 22% decrease of M&As year-on-year, with multi-billion dollar deals showing the most decline. Despite valuations being down were still tracking activity for small to medium-sized deals."
What advice can you give to Software and IT companies on how to survive the recession, moving on to develop and grow?
"Now more than ever its important for companies to have a strategic plan in place, whether to grow organically or through M&A. Its pivotal that companies evaluate whether they can survive the recession and if not, they should sell now before valuations decline further."
What services can Corum provide to help?
"As a global leader in M&A services Corum has successfully completed over UK$6 billion in transactions. Boasting over 25 years experience within the industry, Corum is able to draw on the skill and expertise of our Deal Professionals, who are former tech CEOs with first-hand knowledge of running and selling software/IT companies. Added to this, we have the industrys leading researchers, writers, valuators, plus the worlds largest buyer database."
What forthcoming conferences/events, including web events, is Corum holding that would be of interest to our readers?
"We regularly host conferences, publish distribute software/IT M&A research, to keep companies informed and enable them to make the best strategic choices for their business. A 90 minute Merge Briefing Conference is taking place in London on April 28th, providing an overview of the current software/ IT M&A markets. Our Selling Up Selling Out conference in Paris on June 16th gets in depth with important M&A topics."
To arrange a confidential conferencecall or meeting with a Corum Deal Profesional in your area, who will provide free consultation about your particular market segment and advise on possible engagement opportunities in M&A either now or in the future, Tel: 004144 215 8265.