Tuesday, March 09, 2010

Survey Results - Information Technology Merger & Acquisition Trends from MidMarket Capital

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:

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 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.

To view the complete survey results visit

Dave Kauppi is a Merger and Acquisition Advisor and President of MidMarket Capital, providing business broker and investment banking services to owners in the sale of lower middle market companies. For more information about exit planning and selling a business, click to subscribe to our free newsletter The Exit Strategist

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