Don’t look now – another year is coming to an end… BUT it’s NOT over yet!

Don’t look now – another year is coming to an end… BUT it’s NOT over yet!

Here we are again at the end of a calendar year, reflecting on our learnings from another twelve month hustle. While we saw significant growth in almost all IT Services sectors we saw extra special momentum in mission-critical categories like cyber security and the managed services resulting from continued migration to remote workforce environments and a challenging job market. 

It’s with the kindest intentions that we want to remind the industry that, even with a pending deal looming, the final weeks of a quarter and certainly a fiscal year are of the most critical. We are not looking to derail your holiday plans but we do want to ensure that you are proactively executing on the business objectives right up until the end of the month! 

“Don’t let industry news or M&A activity distract you from meeting or exceeding your forecast” 

After all it is during this time of the year that we see a lot of transactions announced or closed which comes with lots of turning heads.  While comparable deals play a role in valuations it’s important to not get caught up in the public announcements that highlight the rosy, rainbow details of a transaction. The real details are almost never shared so don’t read into these, especially if you are in the middle of a pending deal. It will only derail your focus and maybe your combination!

Another major and likely most significant risk to executing on a pending merger or acquisition on time is a slip in corporate performance due to any number of reasons. This will almost certainly cause delays, additional scrutiny and potential changes to valuations.  

We work closely with our clients year-round to ensure they are executing on their business but we pay extra close attention to year end performance.  The main reason is we have a lot of holidays between November and December and it’s rather easy to forecast missed objectives by mid December compared to other calendar/fiscal quarters. It’s also the highest volume quarter for closing and announcing transactions every year. 

At Revenue Rocket we take pride in helping our customers achieve the objectives and outcomes whether a successful exit and fruitful acquisition or organic growth as a byproduct or our combined efforts. 2021 proved again to be a record year for our practice and the industries were service.  We thank you for your continued support and contributions to the market, our communities and the overall technical advancements of society. 

In closing – heads down, finish strong!

 

See you in 2022,

Mike

 



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