Mirus Capital AdvisorsMirus Capital Advisors

Software

There are two facts in the software industry: 1) change is constant; and 2) approximately 95% of all software companies have less than $20M in annual revenue. And with Microsoft, IBM, SAP and Oracle leading the ramp up of acquisitions over the past 5 years in an effort to grow through acquisition, eliminate price competition, increase customer stickiness, add new capabilities, augment their business models (SaaS) and increase competitive differentiation, you have an environment highly conducive to consolidation across the industry as a whole. In addition to these rivalries, an increasing number of private equity investors are flocking into the software industry in search of stable cash flows and attractive long term prospects, and in some cases, they are outbidding large incumbents. In fact, there is over $200B of private equity funding available for software buy-outs, minority investments and portfolio tuck-ins.

Those software companies that do get growth capital and/or are acquired for strategic premiums most often share some combination of the following key attributes: strong brand in their respective software niche; significant human capital with deep domain expertise; mature and scalable operations; strong ecosystem of partners; an attractive industry niche; strong and defensible core IP; a predictable business model featuring growing amounts of recurring revenues; sustained and above industry average growth rates with plenty of upside; and, a strong dose of scarcity value.

Whatever your stage of growth or ultimate goal, Mirus can help. Mirus has the domain expertise to understand your business and realize the value that you bring to the market beyond simple financial metrics. Our years of operating experience allow us to help you to develop your strategy with an eye toward your specific goal, whether that is raising capital, selling the business or making a strategic acquisition.

Mirus has completed deals in the following software categories:

  • Application software – spanning the entire value chain from design automation to CRM and service
  • System/infrastructure software
  • Embedded software
  • Vertical industry software
  • Information management
  • Business intelligence and data mining
  • Development tools

Mirus provides direct access to sector-specific expertise, as well as knowledge of, access to and relationships with global buyers and sellers in the software sector.

 

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2015 1H Mergers & Acquisitions in Manufacturing Automation

The following report explores the performance of the Manufacturing Automation industry during the first half of 2015, its sectors, related M&A transactions, and trends in the industry with emphasis on the most acquisitive leaders.