The Current Software M&A Climate: Software Sellers Have Left the Building, Part II of II

摘要

Our survey data is further borne out by our ongoing, frank and revealing conversations with corporate development heads, CFOs and CEOs of some 125 public software companies over the past three months. They are frustrated and perplexed by smaller software companies that are seemingly uninterested in being acquired. These public software companies have the appetite, the board mandate and balance sheet cash, but sellers -those with best of breed suites and point solutions, solid revenue and good profitability-are not to be found.rnWhat makes a software company today a highly desirable strategic acquisition target worthy of a hefty multiple? The buyer must perceive the seller to be vital to customer acquisition and retention, competitive differentiation and /or incremental revenue. Our respondents unequivocally confirmed the leading M&A drivers in 2009 are products and technology, with 44% of respondents indicating they'll acquire in order to fill product gaps and extend the functionality of their suites.