Business Strategy for Software Executives
October 16, 2006
Preparing for a Successful M&A Exit
Software companies looking to be acquired must understand todayís acquirers and what they now look for in a target company.
By Scott Munro, Pagemill Partners
Googleís $1.6 billion acquisition of YouTube sprang to life during breakfast at Dennyís just a few short weeks ago ñ or so the story goes.Ý For this and many other reasons, the YouTube deal is really the exception rather than the rule of M&A today.
There is an old saying: a product well bought is half sold. The most successful software acquisitions are those which are carefully crafted well in advance. Understanding todayís M&A landscape and the new standards involved will help emerging companies ensure a strong exit.
Halfway to Reality
Enterprise vendors are making progress, according to Erik Keller. Many execs now seem to grasp the significant changes that will be necessary to be successful in the next era. Now vendors must make the hard decisions needed to redefine their strategies. Erik reviews the implications for software product lifecycles, service levels, quality, costs and integration in this weekís post to his SandHill.com Blog, The Software Critic.
Is the VC Model Broken?
Sevin Rosenís return of its most recently-raised fund had the venture community up in arms about the state of the venture capital model. Matt Miller of Walden VC explains that VC is still alive and well ñ but needs to take a closer look at its own business model by going back to its roots for new ideas. Read Mattís analysis in this weekís post to his SandHill.com Blog, The Picky VC.
An In-Depth Look at Software Consolidation
Software consolidation shows no sign of slowing. Steve Koenig of Jefferies & Company provides research, analysis and a summary of consolidation trends in a new white paper, ìConsolidation in Enterprise Software.î Read the summary and download the report in this weekís post to the SandHill.com Blog on software M&A.
Publish Your Perspectives!
The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to firstname.lastname@example.org and weíll publish them in our blog.
Making Better Exit Decisions
Many companies put off the decision to exit a failing business for too long largely because of psychological reasons. Learn how to recognize these biases and how to create mechanisms that push tough decisions forward in this article from The McKinsey Quarterly.
Poll: One More Week -ìThe Next Big Thingî?
At Enterprise 2006, five contenders to be ìThe Next Big Thingî will present their companies to an audience of fellow executives and investors. Which vendor would you pick as The Next Big Thing?
More at SandHill.com:
Enterprise 2.0 moves beyond the office.
Revcube receives $14 million.
ADP buys VirtualEdge.
SolarWinds names Michael Bennett as president and CEO.
Send us your feedback on this newsletter and the SandHill.com site.
ìIn times of rapid change, experience could be your worst enemy.î
Courtesy of Malcolm Kusher, The Kushner Group
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SandHill.com is published by Sand Hill Group, which provides investment and management advice to emerging leaders in the $600 billion enterprise software, services and solutions market. Sand Hill Group produces the Software and the Enterprise series of conferences for industry executives, and authors research reports on cutting-edge technology topics.