2016 has seen considerable M&A activity in the software solutions sector, with some

exceptionally large deals completing and garnering a lot of attention. SME’s have also

participated in their share of deals and account for a significant percentage of the total M&A

events - though without gaining the recognition.

For the latter organisations - those which don’t have a dedicated M&A team in-house -

when seeking an exit, it is essential they choose a specialist M&A partner to guide them

through the complex M&A maze and help them avoid potential pitfalls.

So, to the purpose of this short article – During almost two decades assisting our clients in

the software sector through M&A events, we have encountered just about every problem

and obstruction to successful outcomes. We have managed to overcome the majority of

these through careful consideration, followed by tenacious negotiations. Sadly, we have also

encountered some so-called experts - “Investment Bankers” and M&A Brokers - who have

made us really MAD!!!

Over the years, we have heard some real horror stories about some of these so-called

“M&A experts”; some, we have witnessed first-hand, whilst others have been recounted to

us by clients who have been taken through a totally unsuccessful and unsatisfactory M&A

sales process.  Some of these stories involve large enterprises, which boast many

transactions on their websites because they engage with large numbers of clients, taking a

fee from each of them - yet their true success rate tells a very different story.

Some of the bad practices we have witnessed are astounding. Sometimes, it is

straightforward incompetence, coupled with a lack of understanding of this sector. On other

occasions, however, and of far greater concern, are the cases, which are, quite simply, sharp

practice.  Whatever the intention or reason, the result is the same: SME’s in this sector get a

poor deal!

If your company is looking to acquire or to be acquired, BEWARE!!

Below is a list of a few of the many unprofessional actions undertaken by so-called M&A

experts:

1. Accepting assignments and then letting the client do most of the work

2. Winning the mandate by intentionally setting false expectations

3. Giving an inflated valuation and/or overly optimistic timeframes

4. Misinforming the client by telling them what (the broker thinks) they want to hear

5. Failure to articulate the value proposition because they don’t understand the client’s

business or sector

6. Shotgun approach to target buyers/sellers and not understanding the sector well

enough for the sale process to remain confidential

7. Conducting the M&A transaction from a purely accountant’s/financial perspective

If you are considering acquiring or are planning to sell your business, please talk to us early

in the cycle. 

Our geographic focus is North America, Europe and the Asia Pacific regions and we

specialize in the software sector.

We minimize your risk of M&A failure and we promise to always give honest feedback on

your objectives - never BS.

If you would like a confidential, one-to- one call to discuss your M&A plans with a senior

executive, please fill out this quick form.  We promise not to be shy in expressing our

opinion : ))