Creating successful mergers and acquisitions

Creating successful mergers and acquisitions

If you are interested in a Merger or Acquisition this year, here are some stand-out findings from the latest survey from of Equiteq, an advisory and M&A firm focused on the global consulting market, that you NEED to know about:

Mergers and Acquisitions

13% increase from 2013-2014

47% of companies expect growth to be driven equally by organic and acquisitive strategies

29% of companies expect growth to be driven mostly by acquisition


To put all of these numbers in perspective, consider this: it was only a few years ago when we told prospective buyers and sellers to expect multiples in the range of 4-6 times trailing 12 month earnings. Today, we are looking at multiples in the range of 7-9 times 12 month trailing earnings, and now we’re advising clients that it is not unusual to expect a multiple of 10 times earnings.

To make the most of an M&A deal, however, there are a few key actions you should take.

The key to successful acquisition

With most things in life, quality comes with a price, and quality companies command high multiples.

Clearly, there is a right (and a wrong) way to do things. So what are a few of the right things that quality companies have, and what should companies looking to be acquired do to achieve the same results?

Be a Microsoft partner.

According to the Equiteq survey, “Microsoft expertise continues to be the largest vendor capabilities associated with IT consulting M&A deals”. In fact, 47 percent of all IT Services M&A transactions are with Microsoft Partners.

With numbers like that, it’s obvious that partnering up isn’t an option when considering mergers and acquisitions—it’s a necessity.

Be in the right industry.

Knowing what areas of the market M&As are occurring in the most is vital.

A hint: that same Equiteq survey shows that the industry segments most in demand are Business Intelligence, Mobility, Big Data, Telephony, Business Process Management, Security, and Compliance.

Be ready.

You’ll need to ensure that your business not only looks good to prospective buyers, but that you’ll be prepared for the changes. Here are a few of our suggestions:

As you can see from the Equiteq numbers, deal activity is high, and it’s continuously being propelled by the ongoing demand for the innovative, customer-demanding technologies offered by Microsoft partners. Read the full survey to see the numbers for yourself and learn more about the state of mergers & acquisitions in today’s market.

What you will find, to put it simply, is it’s a good time to be a Microsoft partner if you are thinking of buying or selling.