Industries Served

Software & IT Service

Beacon has successfully advised companies in the Software and the IT Industry.

Software Publishing Companies
IT Consulting Firms
Logistics & SaaS Providers
Cybersecurity and Privacy Management
Computer & Packaged Software Wholesalers
Point of Sale Technology Company
Marketing Software Company
Asset Management Software Company
Security Technology Company
Workflow Software Company
Supply Chain Software Company
Educational Software Company
Compliance and Regulatory Software (SaaS)
Accounting Software

Beacon has successfully advised companies in the Software and the IT Industry.

Mandate

Beacon was engaged by a well-established data communications company, which had a loyal client-base, employed knowledgeable staff, and their sales generated consistent revenues. The owner of the business was wishing to retire, but wanted to continue to consult to ensure a smooth transition to the new owner. Beacon was chosen as the broker to value, market, and sell the business.

Implementation

Beacon began by compiling a fairness opinion to determine the business’ true fair market value and proceeded to compile deliverables and confidentially market the mandate to potential buyers. While conducting the valuation and creating the deliverables, Beacon worked closely with the vendor. This ensured that the deliverables were as informative as possible, to give potential buyers a clear overview of the business.

Outcome

Beacon has a large network which includes private buyers and private equity firms across North America, and this ensured that the business was pitched to suitable buyers with prior knowledge of the industry.

Industry Overview

Companies in this industry develop operating systems, productivity software, database management and business analytics tools, video game software, design software and cyber security software. The industry also includes software consulting firms and packaged software wholesalers. The IT and Software industry is still in its growth phase and faces light regulation. Due to fintech and disruptive technologies like blockchain, the industry is highly dynamic and competitive. Over the last decade, an exponential increase in smartphone and laptop usage has fueled demand for the software industry. While intellectual property and piracy has been a challenge, viruses like Malware and Trojan Horse have pushed consumers to spend on licensed software and antivirus. Going forward, continued reliance on smartphone and laptop usage will continue to generate demand software. Rising disposable income will generate additional tailwinds for the software and IT services industry.