Steve Jones of Corum Group Answers Questions about Tech M&A

Date: 21 February 2018
Author:
Steve Jones and Software Executive Magazine

What are some of the most common misconceptions software companies have about M&A?

A misconception comes from the tried saying: “Good companies are bought, not sold” – which essentially says you wait for it just to happen. Every successful entrepreneur that I know would never just wait for something to happen. You don’t have a “buy force” to move your product or solution. You have a sales force. They proactively initiate a compelling discussion with your customers. Whether that outreach is a formal sales team or a digital campaign, it is proactive in nature. The same applies in an M&A situation. When the market conditions are right for an M&A transaction, a software company should be proactive in pursuing an outcome. The choice is to act---or be acted upon.  Don’t let the market pass you by.

quotes 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. quotes

David Gorman
Clearview Staffing Software, Inc.