Acquisition of small targets by large software vendors

http://www.mergerduediligence.com

Acquisition of small targets by large software companies

Agenda

– PMI Approach

– Success factors in small target acquisitions

– Issues and risks in small target acquisitions

Agenda

PMI Approach for small and medium sized targets

• Goals– Ship products ASAP, scale revenue– Align and integrate development and operations

with acquirer immediately• Topics worth mentioning

– Product roadmap incl. shipment dates exists at end of due diligence

– High level integration plan exists at the end of due diligence

Success factors in acquiring small targets• Minimize attrition in target• Communicate directly and openly• Have coaches buffer and translate large

company requirements • Fast and full integration IF

• Acquirer understands and can implement the business model of the target (administration, sales, development)

Typical Issues, risks with small targets • Acquirer

– Complexity of small targets leads to high workload

– Acquirer always outnumbers the target• Target

– Overwhelmed (by workload, compliance and reporting requirements, size and org of acquirer)

– Attrition, Brain Drain

More information here:

http://www.mergerduediligence.com