What frequent acquirers expect from software vendors

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Every software vendors wants to get acquired. But what is needed to be ready to get acquired?
This presentation sheds light on some answers

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What frequent acquirers expect from software vendors

  1. 1. What frequent acquirers expect from software vendors http://www.mergerduediligence.com Dr. Karl Popp
  2. 2. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors AGENDA What we want Goals of acquirers Get clean and compliant Survive due diligence Summary Get visible and relevant Get to know the acquisition process
  3. 3. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors GOALS: WHY DO SOFTWARE COMPANIES ACQUIRE? To grow To innovate Speed up time to market Marketshare in new markets To consolidate markets Buy innovation Portfolios
  4. 4. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors GETTING VISIBLE AND RELEVANT Get visible Gain trust Get help from a sales side consultant Joint customer success Become a successful player in partner ecosystem of acquirer Get relevant By analyst coverage In customers, ecosystems
  5. 5. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors DOING SPRING CLEANING IN YOUR COMPANY What should be cleaned Favorite topics: Intellectual property, Intellectual property, Intellectual property Third party software LICENSES Patents and litigations And yes, export law compliance Customer and employee CONTRACTS Open source software LICENSES
  6. 6. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors MANAGING INTELLECTUAL PROPERTY Get ownership of intellectual property by contracts Get and comply with usage rights for intellectual property
  7. 7. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors EXAMPLE: BEST PRACTICE IN MANAGING OPEN SOURCE Manage Open source software Comply with open source licenses Manage and continuously update OS components
  8. 8. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors KNOWING THE GENERIC ACQUISITION PROCESS 3.Due diligence 4.Closing activities 5.Merger integration 1.Build M&A strategy 2.Build business case Analysts, Sales offers, Relevance Analysts, joint customer successes „Clean“ business Decision Point
  9. 9. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors SURVIVING DUE DILIGENCE – TYPICAL ISSUES Challenges for the Target Challenges for the acquirer If acquirer´s and target´s products are not integrated (yet), the product integration effort is hard to guess If you did not do spring cleaning, you might be in trouble What is due diligence? Complexity of targets leads to high efforts Can be overwhelmed by workload, compliance and reporting requirements Diligent review and evaluation of your business
  10. 10. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors SUMMARY Gain trust, get visible and relevant What do frequent acquirers expect from software vendors? Prepare well for getting acquired Get into the ecosystem Get rid of IP-issues Acquiring and integrating complementors has very high success rates
  11. 11. Dr. Karl Popp mergerduediligence.com What frequent acquirers expect from software vendors More information here: http://www.mergerduediligence.com

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