BY CRISTIAN ANASTASIU
Many IT Services and generally IT firms have been only somewhat impacted by the recent crisis, especially when compared to other industries or to the IT industry in previous recessions, like the Dotcom bust of 2001 or the financial crisis of 2008. This time, IT has played an important role in helping businesses and individuals adapt to the new normal.
A vast majority of the lower middle market IT companies, many with PPP help, have a particularly good year and some business owners are talking about a record year.
It is good to see, in retrospect, that many of the optimistic predictions made in April this year came through.
Regarding Mergers & Acquisitions, the fundamentals did not change:
- There continues to be a lot of Private Equity dry powder on the sidelines waiting to be put to work.
- The need for strategic buyers to grow and diversify through acquisitions both with services offerings and geographically is more compelling now than it was in January.
- Customers and vendors prefer to deal with a few, end to end solutions providers that can better address complexity and weather a crisis.
- Many owners, in particular baby boomers, are or will soon be ready to exit, knowing that they survived this crisis OK but unsure what another crisis would mean to their companies’ valuation.
Read Full Article Here: SEPTEMBER UPDATE FROM THE IT M&A FRONTLINES