Running your business News
IT M&A Expert: Over $5 Trillion In Transactions Completed In 2021
Joseph F. Kovar
Tim Mueller, president of martinwolf M&A Advisors, says he’s ‘still very bullish on the marketplace’ as he outlines the factors solution providers looking for growth should keep in mind when determining whether to build, buy or sell their business.
How One Solution Provider Sees Valuations
Chad Hodges, president and founder of HSB Solutions, a Sacramento, Calif.-based provider of resources for government technology projects, told CRN that valuations depend on a lot of factors.
“They depend on a company’s repeatable revenue and on intellectual property that affects your differentiability, which what buyers really look at,” Hodges said. “Buyers want to know that if the founder leaves the company, there’s still value.”
When looking at services, buying companies are looking for things that can fill gaps in their current portfolio, Hodges said.
“It’s definitely easier to fill in gaps than it is to create something new, unless you have the cash and the time to do it right,” he said.