Episode 78: May Tech M&A Monthly Report

Confused between raising capital or selling your company? Discover how recapitalization offers a powerful growth option—allowing you to raise funds, gain liquidity, and bring on a strategic partner without giving up control. In this video, we break down how recapitalization works, why it’s increasingly popular with private equity firms, and how it can drive growth, solve internal challenges, and position your company for a second, more lucrative exit. Featuring real-world case studies, we show how founders successfully leveraged recap deals to scale their business, cash out partially, and align with the right investors. Learn how Corum’s proven process helps tech CEOs navigate recapitalization for optimal outcomes.   takeaways Evaluations don't create value, the process does. A global buyer search process is essential for maximizing value. Recapitalization allows founders to cash out while retaining equity. Private equity can provide operational expertise and growth opportunities. The Corum process can significantly improve sale outcomes. M&A activity is highly international, with diverse buyer universes. Valuations in tech sectors are rising, indicating strong market interest. Educational events are crucial for staying updated on M&A trends. Recapitalization can help companies scale without losing control. The Tech M&A Masterclass offers practical knowledge for navigating M&A.   00:00 Introduction to Tech M&A Podcast 01:43 CEO Desk: Insights on Valuation and Process 04:29 Upcoming M&A Educational Events 07:11 Tech M&A Market Research Report Overview 20:24 Leveraging Recapitalizations for Company Value Special Report 27:39 Conclusion and Upcoming Events

In this episode of the Tech M&A Podcast, Scott Petersen shares his journey of selling his all-in-one hiring solution software, HireClick. He discusses the motivations behind the sale, the importance of being prepared, and the lessons learned throughout the process. Scott reflects on life after the sale, the excitement of new opportunities, and offers valuable advice for CEOs considering selling their companies.   takeaways HireClick was sold in August 2024 after starting in 2017. Inbound interest from potential buyers prompted the decision to sell. Scott felt they waited too long to engage with professionals. Preparation is key to a successful sale process. Life after selling the business has its ups and downs. Scott is excited about future travel and opportunities. The transition to the acquiring company has been positive. Professional guidance was crucial in garnering attention from buyers. Understanding market interest is vital for timing a sale. Scott emphasizes the importance of metrics and readiness for potential acquirers. 00:00 Introduction to Tech M&A Podcast 00:32 Scott Petersen and HireClick's Journey 02:52 Reflections on Selling the Business 03:42 Advice for CEOs on Selling 04:19 Looking Ahead: Life After the Sale

Not every M&A deal follows a straight path—sometimes, stepping back can be the key to securing the best outcome. Corum’s Hiatus Program empowers tech entrepreneurs to refine their businesses, address buyer concerns, and return to market stronger than ever. With nearly one-third of Corum’s clients utilizing the program, the results speak for themselves—companies see an average 40% increase in offer values post-hiatus. In this month's webcast we'll share two success stories where businesses leveraged this strategic pause to drive substantial growth, re-entering the market to secure significantly higher valuations and better deal terms. Plus, we'll share the Q1 Tech M&A Research Report: Key deals, top buyers, trends and valuations.

In this episode of the Tech M&A Podcast, Richard Addotta, co-founder and CEO of WRM, shares his journey from working in utilities to founding a software development company focused on storm response solutions. He discusses the motivations behind selling his company, the changes in his life post-sale, and offers valuable advice for aspiring entrepreneurs. Richard emphasizes the importance of timing, expert guidance, and the personal fulfillment he now experiences as he transitions into a new chapter of life, focusing on family and personal growth.   Takeaways WRM focuses on improving storm response through innovative software. The decision to sell was based on timing and business readiness. Life after the sale has significantly reduced stress for Richard. Having expert guidance was crucial during the sale process. Patience is essential when navigating the sale of a company. Richard is excited to spend more time with his family. He aims to be actively involved in his children's lives. The sale allowed Richard to achieve a better work-life balance. Richard's journey highlights the importance of recognizing personal and business milestones. Chapters   00:00Introduction to WRM and Richard's Journey 03:02The Decision to Sell: Timing and Motivation 05:48Life After the Sale: Personal and Professional Changes 07:51Advice for Future Entrepreneurs

CEOs that sold in 2024—What advice do they have for founders and CEOs? Whether you’ve had an exit plan in mind from the start or you’re fielding unsolicited offers from potential acquirers, the more information you have about the M&A process, the better. This month, hear from CEOs and founders who sold their tech companies in 2024. We’re excited to host Richard Addotta (WRM), John Dickey and Steve Wargalla (QSTRAT) and Scott Petersen (HIRECLICK) on our annual Sellers Panel webcast. What surprised them about the M&A process? Advice for other CEOs looking at exiting What would they do differently? How did they ensure that they achieved an optimal outcome through the process? Plus, we'll discuss the current M&A market, the latest deals, trends and valuations in Corum's monthly Tech M&A market update.   -------------------------------------------------------------------- Corum's Tech M&A Monthly is a regular webcast series for software company owners, executives and CEOs. Each month, Corum Group, the world's leading M&A firm for software and related technology companies, examines the world of Tech M&A. In addition, Tech M&A Monthly includes special reports on buyers, markets and the M&A process itself. This thirty-minute webcast is a must for owners and CEOs considering Tech M&A, whether now or in the future.

In this episode of the Tech M&A Podcast, Corum speaks with Andreas Ulrich, the founder of PlanFocus, a cash optimization software company. Andreas shares his journey from the inception of PlanFocus to its successful sale in 2022. He discusses the challenges and surprises of the M&A process, the importance of thorough documentation, and the lessons learned along the way. Andreas also reflects on his new role post-acquisition and offers advice for other CEOs considering M&A.   Takeaways Andreas Ulrich founded PlanFocus in 2004 with a focus on cash planning. The M&A process was planned from the beginning of the company. Due diligence was time-consuming and challenging to manage alongside daily operations. COVID-19 impacted the M&A process, requiring more virtual communication. Having up-to-date documentation is crucial for a smooth M&A process. Post-deal, Andreas remains the managing director of PlanFocus. The experience of selling a company is unique and valuable for entrepreneurs. Corum Group provided essential support during the M&A process. Andreas is contemplating future ventures after the acquisition. Financial security post-deal has been a positive change for Andreas.   Chapters 00:00 Introduction to Tech M&A Podcast 01:03 Andreas Ulrich and PlanFocus Overview 02:56 The M&A Process Journey 05:49 Advice for CEOs Considering M&A 08:03 Life After the Deal and Final Thoughts

Financial acquirers are a dominant force in Tech M&A today. With cash to spend, aggressive deal teams and actively acquisitive portfolio companies, all technology company owners and executives must understand the role of Private Equity in today's M&A landscape.   Our research team has prepared a special report on Private Equity M&A activity in 2024 and a look at the deals in the first month of 2025.   ---------------------------------------------------------------------------------------------------------------------------- Corum's Tech M&A Monthly is a regular webcast series for software company owners, executives and CEOs. Each month, Corum Group, the world's leading M&A firm for software and related technology companies, examines the world of Tech M&A. In addition, Tech M&A Monthly includes special reports on buyers, markets and the M&A process itself. This thirty-minute webcast is a must for owners and CEOs considering Tech M&A, whether now or in the future.   Takeaways Saying no to the first offer can lead to better deals. Running a professional global search process maximizes company value. The tech M&A market is competitive with over $6 trillion in dry powder. Upcoming events include multiple market updates and boot camps. Recent acquisitions highlight the growing importance of tech solutions in various sectors. The Corum Index shows a diverse buyer universe with significant international deal-making. Private equity plays a crucial role in the tech M&A landscape today. Strong management teams and company culture are vital for M&A success. Vertical software and industry-specific solutions are trending in 2025. The Tech M&A Masterclass offers valuable insights for tech CEOs and founders.     00:00 Introduction to Tech M&A Podcast 01:46 The CEO's Desk: Buy-and-Hold Offer Delimma  05:48 Upcoming Events and Market Updates 08:38 Deal Report: Notable Acquisitions 09:04 Tech M&A Market Research Overview 24:08 Private Equity Panel Insights 31:37 Conclusion and Future Events

In this episode, Luc Pettett shares his journey from being a software engineer to founding and exiting multiple businesses, including Punters and Telescope. He discusses the importance of taking time to reflect post-exit, the challenges of navigating life after a successful sale, and the mindset shift that occurs when starting a new venture. Luc emphasizes the role of AI in finance and the significance of timing when considering an exit from a business.   Takeaways Luc Pettett founded Punters and sold it to NewsCorp Australia. Post-exit, he took time off to travel and reflect. He focused on learning about AI and finance after his exit. His new venture, Telescope, aims to disrupt finance with AI. The importance of patience and not rushing into the next venture. Mindset changes significantly after a first business exit. Building a good business is more important than just financial gain. AI is set to massively disrupt the finance industry. Timing is crucial when considering an exit from a business. It's essential to be comfortable with the idea of exiting.   00:00 From Software Engineer to Entrepreneur 03:20 Navigating Post-Exit Life 05:45 Building Telescope: A New Venture 08:08 Mindset Shift After Exiting 10:07 The Importance of Timing in Exits

In this episode of the Tech M&A Podcast, Jim Falkanger shares his journey through five successful company exits and his transition into retirement. He discusses the challenges and opportunities that come with stepping away from a CEO role, the importance of finding new passions, and how he plans to stay engaged with technology and mentoring in his new phase of life.   Takeaways Jim Falkanger has successfully exited five companies. Retirement offers a chance to focus on personal interests. Transitioning from CEO to retirement can be challenging. Staying active and engaged is crucial in retirement. Mentoring and volunteering can provide fulfillment post-retirement. Time spent with family, especially grandkids, is invaluable. Planning for retirement should include time for personal projects. Exploring new technologies keeps the mind engaged. Taking a break after selling a business is important. Finding hobbies and interests can ease the transition into retirement.   Chapters 00:00 Introduction to Jim Falkanger's Journey 02:54 Navigating Retirement and New Beginnings 06:01 Transitioning from CEO to Retirement 08:50 Embracing Technology and Future Aspirations

The Tech M&A Podcast presents insights into the 2025 market, highlighting key trends and research findings. The conversation covers the CEO's perspective on market dynamics, the top disruptive technology trends shaping the industry, and a comprehensive annual report on tech M&A activities across various sectors. This conversation delves into the latest trends and activities in mergers and acquisitions across various sectors, including financial technology, education technology, healthcare, manufacturing, and cybersecurity. It highlights significant deals, valuation trends, and the impact of emerging technologies like generative AI on the market. The discussion also emphasizes the importance of data utilization and the evolving landscape of blue collar software, alongside strategic considerations for M&A targets in 2025.   Tech M&A is expected to set records in 2025, especially for privately held companies. The youngest baby boomers reaching 60 will drive more tech company sales. Education on Tech M&A is crucial for success in the market. Gen-AI enablement is the top disruptive trend for 2025. People-centric productivity tools are in high demand due to workforce changes. Actionable analytics technology is essential for better decision-making. Value chain intelligence is critical for maintaining data integrity across processes. Embedded cash flow opportunities are expanding in the tech sector. Focused managed services are increasingly attractive to buyers. The health tech continuum trend emphasizes the need for unified patient data management. M&A activity in financial technology is on the rise with significant acquisitions. The EdTech sector is seeing increased investment and consolidation. Healthcare technology is becoming a focal point for M&A as companies seek to enhance their offerings. Manufacturing and not-for-profit sectors are experiencing notable acquisitions. The internet sector is witnessing a surge in revenue valuations and EBITDA multiples. Infrastructure sector valuations are rising, indicating strong market interest. Cybersecurity acquisitions are critical as companies bolster their defenses against threats. Gaming and cloud services are emerging as key areas for investment and growth. Generative AI is a pivotal trend that companies must navigate in 2025. Blue collar software presents unique opportunities for technological advancement and workforce training.   00:00 Introduction to Tech M&A Podcast 01:19 CEO Insights and Market Overview 07:05T op 10 Disruptive Technology Trends for 2025 20:26 Annual Tech M&A Research Report Overview 33:09 Mergers and Acquisitions in Financial Technology 35:54 Trends in EdTech Acquisitions 37:17 Healthcare Technology M&A Activity 39:08 Acquisitions in Manufacturing and Not-for-Profit Sectors 40:46 Growth in Internet and Real Estate Market Valuations 42:32 Infrastructure Sector Valuations and M&A Trends 44:52 Cybersecurity and Threat Intelligence Acquisitions 46:44 Emerging Trends in Gaming and Cloud Services 49:02 Key Trends for 2025: Generative AI and Data Utilization 56:12 Blue Collar Software and Value Chain Intelligence 01:00:59 Strategic Partnerships and M&A Target Characteristics