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

July 2010 – Happy 4th of July from Ephor Group!

As you prepare for the second half of 2010, let us share with you a few of our recent publications which will lend some guidance and support in achieving your 2010 goals and objectives.   See the resources here.

June 2010 – Ephor' client Serenity Systems Acquires Certain Assets of Lighthouse Consultants.

Serenity Systems, a provider of IT Managed Services for organizations with enterprise systems, today announced the acquisition of certain assets of Lighthouse Consultants. Read the rest of the announcement here.  

June 2010 – The CFO’s Role and Agenda for Capitalizing on Useful Capital

Garry E. Meier, Ephor Group Chairman, presents  to myCFOnetwork CFO’s. Read more here.

May 2010 - Ephor' client HRAdvance Acquired by Hewitt.

Learn more at: Hewitt.com

April 2010 – Ephor releases FAO (Financial and Accounting) Outsourcing Brief

As the economy transitions, enterprises are transitioning from cost-cutting to cost-agility.  Increasingly, businesses are opting for “lighter-weight” service providers that combine a) software technology with b) outsourced services to create a FAO platform offering that delivers exceptional value.  Download the report here.

 

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."