In the midst of selling a software company, it is easy to neglect the final phase of the M&A process - namely, the integration of the two companies after the deal is closed. According to an Ernst & Young study, nearly 53 percent of mergers fail to meet the buyer's or seller's expectations, and integration is the leading factor.
As a founder or CEO, you don't want to be seen as someone who did a deal to benefit yourself, while leaving your customers or employees hanging out to dry. Beyond that, if deal has earnout provisions, with some percentage of the total sale price contingent on the performance of the company going forward, all shareholders have a vested interest in ensuring a smooth and successful integration process.
I think that the one thing that, as we looked at different firms to help represent us, one of the things that really hooked us, and I believe was still a big factor, was the fact that we had a firm who understood the software side of our business, a firm specializing in software, and I think that helped us immensely in the process because we weren't having to go in and educated a firm or broker on how to speak our language to potential buyers. I think that was one of the things that made an easier decision for us to select Corum in that process.
Clearview Staffing Software, Inc.