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Answer Upon - Software Company Business Valuation
You know - the decision you make when selecting a Merchant Account provider may be much more important than you think. Why? Because you will rely on their service many times a day, as you take in credit card payments for your business.The fees your merchant account provider charges, as a percentage of sales, will add up to tens of thousands, even hundreds of thousands of dollars, over the course of a few years!Bad or mediocre customer service can cost you many hour
We approached the president and positioned our client as follows:<
SoftwareCurrent Business analytics software incorporates tools and applications for tracking, modelling, analysing and delivering data in support of decision-making processes. Simplify storage management Business Analytics software enables you to know where all your storage assets are, how they are performing and their utilization. Introducing Business Analytics software, you can see your entire storage infrastructure through a single integrated tool. Lower storage costs
That is what makes software or technology based companies so much fun to sell. Arriving at a business value is done the old fashion way. You identify the universe of likely buyers, prepare your blind profile and NDA, and contact the president or person in charge of mergers and acquisitions. What you are trying to accomplish is to identify and articulate the strategic rationale for considering this acquisition.
In the example above, our distribution management software company had adapted their software to a new vertical market while also introducing it on Microsoft’s .NET platform and upgrading from green screen to GUI interfaces. They were not getting any traction in the new vertical competing against the two dominant players in that space. They had, however, created a lot of value in their technology. They were a very good acquisition candidate for one of the dominant competitors. They had “leap-frogged” this competitor with a more modern platform. The competitor, through a series of prior acquisitions, was actually supporting six different software platforms for essentially the same capability. They were contemplating a long and expensive system rewrite. They needed to consolidate platforms, but did not have an upgrade path for their installed clients. Their clients were vulnerable to defections.
We approached the president and positioned our client as follows: Never Go To The Bank Again: How Businesses Save Time and Money with Electronic Check Processing
What is Electronic Check Processing?
Electronic check processing means that you can convert a paper check received from a customer into an electronic transfer (sometimes called an e-check) that takes funds from your customer's account and places them into your account. (You may have seen transactions of this type on your checking statement.) This transfer takes place via the Federal Reserve Bank’s Automated Clearing House (ACH) system. It's a faster, less-ex
In the example above, our distribution management software company had adapted their software to a new vertical market while also introducing it on Microsoft’s .NET platform and upgrading from green screen to GUI interfaces. They were not getting any traction in the new vertical competing against the two dominant players in that space. They had, however, created a lot of value in their technology. They were a very good acquisition candidate for one of the dominant competitors. They had “leap-frogged” this competitor with a more modern platform. The competitor, through a series of prior acquisitions, was actually supporting six different software platforms for essentially the same capability. They were contemplating a long and expensive system rewrite. They needed to consolidate platforms, but did not have an upgrade path for their installed clients. Their clients were vulnerable to defections.
We approached the president and positioned our client as follows:<
While installing your new accounting software you have most likely been asked whether you would like to use one of the default charts of accounts included with the program or develop your own. Unless you are very familiar with setting up a set of financial books you will want to choose from one of the selections offered. And even if you have the experience choosing one of the defaults will save you a great deal of time. But you may ask what if I don’t need all these accounts and h
In the example above, our distribution management software company had adapted their software to a new vertical market while also introducing it on Microsoft’s .NET platform and upgrading from green screen to GUI interfaces. They were not getting any traction in the new vertical competing against the two dominant players in that space. They had, however, created a lot of value in their technology. They were a very good acquisition candidate for one of the dominant competitors. They had “leap-frogged” this competitor with a more modern platform. The competitor, through a series of prior acquisitions, was actually supporting six different software platforms for essentially the same capability. They were contemplating a long and expensive system rewrite. They needed to consolidate platforms, but did not have an upgrade path for their installed clients. Their clients were vulnerable to defections.
We approached the president and positioned our client as follows:<
What are the top 3 ramifications of the options backdating scandal?If you remove the usual tax consequences, shareholder lawsuits, restatement, etc. What things do we see coming down in terms of legislation/new rules and regulations and where are the opportunities?1. Revisiting Executive compensation: It supposed to be aligned with shareholder, but as examples of Cyberonics points out, not exactly. We see examples of Google, Apple and Yahoo paying their Chief Executi
We approached the president and positioned our client as follows:<
We all live in our own little world. What we see in front of us is pretty much all we believe there is. In the world of medical billing, this can be a nightmare waiting to happen when it comes to doctor files. Why? Well, there are quite a few reasons. We're going to cover some basic things you will need to know about your doctor files before setting them up in your DME billing system and then afterwards when you're getting ready to bill them.The first thing you need to
We approached the president and positioned our client as follows:
1. Purchase our client for a favorable buy versus build outcome.
2. Time to market – We could provide an immediate upgrade path versus eighteen months of development
3. Substantial cost savings – By rationalizing their software platform and reducing the number of supported systems
4. Immediately end customer defections by announcing an actual upgrade path versus years of promises
5. Prevent a more formidable competitor from getting his hands on this technology and causing them some real damage
The good news is it worked and we were able to get our sellers north of $2.5 million. Over a year later it has proven to be a good deal for both buyer and seller.
The healthcare ASP also turned out to be a strategic fit for a much larger healthcare IT firm. This established company had previously delivered their software through a traditional licensing approach where their clients managed their own internal systems. The buyers needed our client’s cutting edge module that completed their suite of products. They intend to use the ASP model as the springboard to launch their entire product suite on the ASP model to complement their licensing approach.
Much of this transaction value was in the form of a well structured earn out. Both buyer and seller feel comfortable that the sales targets will be met and will provide the maximum co
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