Technology & Software

Private Equity groups and institutional investors have long been attracted to technology and software providers due to the fundamentals of the business model. Several key factors include:

1. The need for all small businesses and emerging enterprises to outsource multiple business processes and functions to remain cost competitive and to gain access to capabilities/expertise/resources/tools otherwise unaffordable;


2. Macro-business trends driving market dynamics such as the increased need for mobility, risk management and governance requirements;


3. Highly fragmented mid-market;


4. Economically efficient model driven by recurring revenues (long-term contracts, valuations, high switching costs);


5. Operational performance driven by people performance, scalable customer acquisition and cost models


6. Increased dissatisfaction with service levels from Fortune 500 vendors presents small business and mid-market opportunities.


7. The median software industry exit valuation grew 46% during 2009 but still closed the year below 2008's median TTM revenue exit multiple. (SaaS exit valuations were 1X-5X TTM revenue)


8. Seventy-three public software companies issued multiple announcements in 2009 expressing their intent to buy smaller software companies in 2010.

Ephor Group News & Updates

February 2010 – Ephor' client Serenity Systems Acquires Certain Assets of Kommar Solutions.

Learn more at: serenitysystems.com

February 2010 – American Small Business Vulnerability to Slow Economic Recovery

In the article Garry E. Meier outlines the five (5) areas that will be weighing down the economy in the near-term. Learn more on Ephor Group's eNewsletter.

February 2010 – Capital & Financing Options in 2010

Businesses that that have changed and are profitable (and are backed by a strong management team with lean operations and have both a unique business model and defined business plan) have multiple financing options available to them as the following report details. Download the report here.

January 2010 – Top Barriers to Wealth Creation

Over the past decade Ephor Group has worked with literally hundreds of small businesses to overcome barriers to wealth creation. This document identifies the most common barriers and provides guidance and processes to create a roadmap for near and long-term success. Download "Top Barriers to Wealth Creation."