CDD for Tech Implementation & Support Businesses – Spotting the Good, the Bad and the Ugly
Given the massive growth in digitisation, automation and the software markets, investors are pushing ever-increasing amounts in the tech advisor and technology implementation/support partner market. These businesses are subject to the same market growth rates (minimum >10% p.a., many >20% p.a.), but relative to the underlying software businesses they benefit from lower entry multiples…
How to Diligence the Risks of SaaS Scope Creep
GRAPH has diligenced many SaaS companies, and as we all witness there is a particular trend towards software companies seeking to build a “complete platform” stemming from an original best-in-breed point solution. In the quest to grow revenues, increase stickiness, drive value, and attract investment, companies are expanding their feature-sets. This scope-creep poses a very real risk of…
CDD Plan of Attack: Risk of Overstatement of Digital Disruption Signals (and Opportunity)
The risk of ‘digital disruption’ is pertinent to almost every industry today. Naturally, acquirers look for signals that a target company will be able to brace the oncoming winds of change and enhance its products and services to meet the demands of an increasingly connected and digital world.
Commercial Diligence Tips for Tech-Enabled Service Businesses
Many recent PE deals have targeted businesses that apply technology to help customers streamline processes which have previously been manual and “paper-based.”
Problems to Avoid when Forecasting Product, Service, and Technology Adoption as Part of Diligence
An investment thesis often depends on adoption in one form or another (e.g., of a new product, business model, technology, etc.) so we thought it helpful to lay out “best and worst” practices for assessing adoption potential.