Hinsdale, IL (PressExposure) March 10, 2010 -- We surveyed CEO's and Directors of Mergers and Acquisitions over a broad cross section of software, Healthcare IT, IT services, and Information Technology. We were pleasantly surprised by the robust growth projections and level of optimism from these Information Technology Executives. Below are the results from this brief survey:
I believe my business will do the following in 2010.
Answer Options Response Percent shrink by greater than 10% shrink by greater than 10% 0.0% shrink by between 0 and 10% 1.3% stay flat 14.1% grow by 0 - 10% 25.6% grow by 10 - 20% 26.9% grow by greater than 20% 32.1%
What best describes your Company Acquisition Plans in the next 18 months?
Answer Options Response Percent We are actively seeking acquisitions. 19.2% We would consider if the right opportunity came along. 38.5% We have no acquisition plans in the near future 29.5% Are you Kidding? If you have a buyer, we might be for sale. 12.8%
If you were to consider an acquisition, please pick your top priority in making the acquisition.
Answer Options Response Percent
Acquire Customers 26.4% Operating Leverage 2.8% Bigger Company = Bigger Valuation Multiple 4.2% Capitalize on a company strength (i.e. great sales team) 11.1% Cover a Weakness 4.2% Buy a Low Cost Supplier 0.0% Improving or Completing a Product Line 13.9% Technology - Build or Buy? 5.6% Protect and Expand Mature Product Lines 2.8% Protect Customer Base from Competition 5.6% Acquisition to Open new market (i.e. government, healthcare) 19.4% Opportunistic Acquisition for when the Market Turns 4.2%
What do you think are the three fastest growth software niches?
Software Category Growth Ranking Mobility/Smart Phone Apps 77 Virtualization 39 Healthcare/Electronic Medical Records 68 Cloud Computing 59 Social Media/Networking 29 SaaS/Web Based Apps 64 Collaboration 18 BI/Analytics 37 Security 19 eCommerce 11
If you were to make an acquisition in the next 18 months, briefly describe the the acquisition target.
Answer Options Response Percent Mobility/Smart Phone Apps 7.4% Virtualization 5.6% Healthcare/Electronic Medical Records 20.4% Cloud Computing 9.3% Social Media/Networking 3.7% SaaS/Web Based Apps 22.2% Collaboration 5.6% BI/Analytics 11.1% Security 9.3% eCommerce 5.6%
After a very difficult 2009, the executives surveyed were surprisingly upbeat, with 32% of respondents believing that their business will grow by more than 20% over last year. 57.7% of those surveyed are either actively seeking acquisitions or would make an acquisition if the right opportunity were available. With customer acquisition being one of the greatest challenges for IT companies, not surprisingly, the most important acquisition criteria was to acquire customers at 26% of respondents. 19% would use an acquisition to enter a new market.
The top three growth categories, according to the respondents were projected to be Mobility/Smart Phone Apps, Healthcare/Electronic Medical Records, and SaaS/Web Based Apps. The hottest areas in terms of potential acquisitions were SaaS/Web Based Apps, at 22% and Healthcare/Electronic Medical Records at 20% of respondents. It sure looks like these IT executives are confident that their sector will be one of the engines to drive this economy into recovery.