What Factors Increase Chances of M&A Success?
Atlasview Insights -- bite-sized weekly insights that are relevant to all business owners, dealmakers, and investors.
Welcome to Atlasview Insights! We are thrilled to have you join us for another edition packed with valuable content for small business owners, deal makers, and investors alike.
For those who may be unfamiliar with us, Atlasview Equity is a private equity firm specializing in software and tech-enabled businesses. To learn more about our experienced team and investment criteria, visit us here.
In this edition of our newsletter, we cover:
Factors increasing the chance of M&A success
Ryan Khan’s feature in Axial’s Part 2 of their software M&A outlook report
Our favorite reads from around the ecosystem
If you enjoy what you read, please be sure to subscribe and share with your colleagues.
P.S.- Our new website is live! Check it out and let us know what you think!
Preferred Investment Criteria
We look for the following characteristics in our partner companies:
Industry: Software and tech-enabled businesses
Business Profile: Sticky B2B customer base
Size: Minimum $1m EBITDA or $5m ARR
Geography: The US & Canada preferred
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to reach out and get in touch with us!
Factors Increasing Chance of M&A Success
This chart, taken from the M&A book ‘Deals from Hell’ lays out 17 factors that improve/reduce the odds of M&A success.
This was put together after studying ~3000 M&A transactions. Though most of the transactions studied involved larger businesses, we think these lessons are relevant for business buyers of all sizes. Many of these lessons may be obvious but still requires discipline to execute.
#9 might be one of the most important factors in our opinion.
We are heading into a cold M&A market, so attractive opportunities will present themselves for patient acquirers. We are starting to see more and more of these attractive opportunities that didn’t exist in the hot M&A markets of 2020/2021.
On that note, our team is focused on acquiring software and tech-enabled businesses. Along with our operating partners, we have decades of experience within the mentioned sectors, paired with a vast network and a proven playbook.
If you’re an owner interested in working with Atlasview or an intermediary with a deal to share — feel free to reach out and get in touch with us. We will respond within 24 hours, and we can have an offer on the table within 7 days.
We are happy to pay referral fees for any deal referred and successfully closed.
Our Favorite Reads
Axial's 2023 Software M&A Market Outlook
Last month Atlasview was included in Axial's 2023 Software Top 50 List!
Part 2 of the software M&A market outlook was released last week and Ryan Khan had the chance to share some valuable insights about the current software market, valuations, and the outlook for dealmakers.
On cyclical SaaS business models in an uncertain macro environment:
A lot of cyclical companies are out of favor given the macro environment. Any sub-sector that is considered discretionary is facing the tough challenge of meeting the end customers’ budget, and any business in need of high investment of capital is facing a tough economic battle.
“Defensive and recession-proof businesses are in favor, while a lot of cyclical companies are out of favor given the macro environment.
Atlasview Insights <> Deal Bridge Media
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Q&A w/ Atlasview Equity
Last month, Jay Vasantharajah sat down with Tony Hill of Trivest Partners, as part of a Q&A for their Independently Sponsored series.
In case you missed it, the interview covers Atlasview’s origin story, our firm’s value prop/thesis, and where we are seeing opportunities today.
Atlasview Equity is a private equity firm specializing in software and tech-enabled businesses. We combine patient capital with proven operational strategies to deliver predictable results for our stakeholders.