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