Recently, Colin Campbell spoke with Patrick Stroth for an episode of the M&A Masters podcast. The two delve into the IT Services M&A Overview, exploring the potential Colin sees for a market downturn on the horizon.
Colin discusses the trends he sees that point to the potential slowdown, as well as how buyers and sellers may approach deals to account for it. In his view, strategic buyers are being quite selective in companies they target, and tend to go after the company aggressively once they “fall in love,” wanting to move quickly and are willing to pay a premium.
In direct contrast lie financial buyers who may have a wider appetite for acquisition targets, but factor into their analysis the possibility that values may level-off or decline due to an economic slowdown or other factors – they are mindful of the potential downside when pricing a target.
The conversation takes a deep dive into the above concepts, as well as:
- The type of revenue that is most attractive to financial buyers
- What drives real value in data processing companies
- Who’s buying IT services companies today
- The disconnect between Buyers and Sellers in the IT services space
Click here to listen to the podcast on Apple.
Colin Campbell is an Associate Director, focusing on IT Services, in the Manhattan Beach office.