Download our corporate finance software and technology deal review (PDF - 586kb)

Investors and buyers are once again combing the software and technology sectors in search of acquisition and investment opportunities.

The software sector was particularly hard hit by the boom and bust of the dot com era. Companies that watched their valuations rise to sky high levels on the back of a frenzied rush to exploit the internet were caught in a reverse wave as investor interest all but evaporated. Up until the global economic meltdown the sector was enjoying a renaissance and valuations were on the up. The trend was driven in part by acquisitive corporate buyers. However these same businesses are now battening down the hatches and in the main, the appetite for taking risks has diminished.

However, it’s not all doom and gloom. Established software businesses are in a better position than most to withstand a downturn. Their business model of high recurring revenues and ability to turn profits into cash will stand them in good stead. Selective sectors will continue to be attractive. Software solutions are now seen as integral to the delivery of both customer service and internal functions, such as HR and compliance. Meanwhile, the big consultancies have also looked to maintain a competitive edge in vertical markets such as insurance, travel and the public sector.

In the technology sector, one dominating theme is the environment. With climate change and volatile fuel prices at the top of the international agenda, technologies that offer ways and means to cut C02 emissions, find alternative sources or use energy more efficiently are generating interest not seen since the dot com heyday. Perhaps that’s not surprising, but the technology boom goes much further than the issue of soaring oil prices.

For instance, the European Directive on Landfill has created a market for technologies that reduce the amount of waste consigned to the earth. All this means there are opportunities for businesses seeking investment, working towards a buy-out or looking for acquisitions. Valuations are holding up, even in the current uncertain economic climate and buyer interest is international in its scope.

Baker Tilly’s experience in the software and technology sectors makes us ideally placed to help you take advantage of the current conditions. In the following pages we showcase just a handful of our recent deals and you can see what our clients have to say about our talented people and how we added value in each of their transactions. Whether it was a trade sale, buyout, acquisition or IPO, they all had one thing in common. Deals were delivered effectively by the Baker Tilly team. We hope that this review will illustrate the excellent service offered to shareholders, management teams and financial institutions by our specialist team of deal doers. We would also like to thank everyone who has helped make these transactions happen and we look forward to working together over the coming months and years in an exciting market.

 Download our corporate finance software and technology deal review (PDF - 586kb)