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M&A support
Strategic moves through mergers and acquisitions
There are a number of reasons that software companies look to acquisitions to grow their business (and we’ve seen them all).
You might want to strengthen your market position, increase the size of your company, extend your offering, access new markets, or augment your pricing power and end up with a higher valuation.
But whatever your reasons, acquisitions can be a key part of a growth strategy with gumption. If you want to know how to get this right, we’ve got the answer. We’ll support you throughout the add-on acquisition process: from sourcing targets to financing transactions.
Defining your acquisition strategy
The software industry is rich with potential acquisitions. But the horror stories are never far away, either.
At Monterro, we have a track record of crafting success in this tricky field. And the baseline always starts with a thorough analysis of your priorities.
Simply put, we’ll help you do your homework as well as the hard work:
Scoping out target companies
Not certain on what your leads should look like? We can help you build an appropriate shortlist of targets – ordered by priority. We’ll even help you get the inside track from specialists in your vertical, their industry connections, and on your potential rivals.
Financial planning and valuation
Even “smaller” acquisitions can have big financial implications. Our rigorous cost assessments have you covered – especially as they include how to approach resourcing from a staffing perspective.
Due diligence
A ‘DD’ process can mean a lot of different things and it’s very easy to get lost in all the jargon and PowerPoint presentations. We help you cut through the noise and choose the right areas to focus on, help you with the analysis involved, and can help you find experts to support you and nail down the key conclusions. If you’re unsure if an add-on is the right one for your product, we can help you find the answer.
More than signatures and box ticking
Getting an acquisition over the line depends on having the right people in place. Once you’re ready to take the plunge, our specialist team will advise on negotiations and oversee all relevant transactions along the way.
Getting it to work together
There’s a lot of potential value in acquisitions, but if you fail to nail the integration phase, the chances of you realising any of those goals is unlikely. We help you set a clear strategy for your integration phase (and make sure it’s done early), so when the deal is closed, we can get right to business.
Why do software companies make add-on acquisitions?
Common reasons are to strengthen market position, grow the company, extend the offering, access new markets or improve pricing power. Done well, an acquisition can be a key part of a growth strategy and lead to a higher valuation.
How does Monterro support add-on acquisitions?
We support you throughout the add-on acquisition process. That covers defining the strategy, sourcing targets, financial planning and valuation, due diligence, negotiations, financing and integration.
How does Monterro help define an acquisition strategy?
Every acquisition strategy starts with a thorough analysis of your priorities. From there we help you decide what kind of companies to target and why, based on our track record of acquisitions in the software industry.
How does Monterro help find acquisition targets?
We help you build a shortlist of target companies ordered by priority. We also give you the inside track through specialists in your vertical, their industry connections and insight into your potential rivals.
How does Monterro help with financial planning and valuation for an acquisition?
Even smaller acquisitions can have big financial implications. Our cost assessments cover the financial side of the deal and how to resource it from a staffing perspective.
What does Monterro's due diligence support include?
We help you cut through the jargon and choose the right areas to focus on. We support the analysis, help you find experts and help you reach the key conclusions. If you are unsure whether an add-on fits your product, we help you find the answer.
Does Monterro help with negotiations and closing the deal?
Yes. Once you are ready to move forward, our specialist team advises on negotiations and oversees all relevant transactions until the deal is closed.
Why is the integration phase so important?
Much of the value in an acquisition depends on integration. If the integration fails, the goals behind the deal are unlikely to be met. That is why we help you set a clear integration strategy.
When should integration planning start?
Integration planning should start early, before the deal is closed. That way you can get to work as soon as the acquisition is complete.
Where can I learn more about mergers and acquisitions in software?
You can download Monterro's eBook on mergers and acquisitions from this page. It covers how to plan and run add-on acquisitions in B2B software.