IT services offers unique opportunities and challenges to managers, acquirers and investors alike. Clients need an adviser with deep understanding of the sub-sector, who can move quickly enough to help capture opportunities as they arise.
Livingstone believes in a more artisanal approach to deal making. We aim to provide prospective clients with a realistic assessment of both the marketplace and the company-specific attributes that could dampen investor interest. We seek to educate prospective buyers on the opportunity – the good, the bad and the ugly – so they can arrive at their own initial valuation conclusions, with no price guidance.
We look to engage buyers that have a strategic rationale for owning the target, as they are most likely to overcome the variety of negative issues that invariably arise during a diligence process. We believe that a sale process that promotes full disclosure, transparency, open and honest dialogue is the surest way to optimize the outcome.
The IT Services M&A market has been humming along and what we’ve seen so far this year doesn’t seem off-key. Middle-market transaction volume is strong and valuations are generally in line with historical averages. Simply put, there are plenty of public acquirers with money to spend on the right prospects.