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Kuhn Capital Releases M&A Survey Results
Chicago, IL - June 1, 2002 – Kuhn Capital announced the results of its inaugural M&A Market Attitude Survey today. Attitudes measured included interest by senior IT executives in a company sale or purchase, and the price and terms of an attractive transaction.
The survey -- compiled by soliciting opinions through the mail and via the company’s website -- represents a statistically valid set of responses from senior exec-utives at about 500 software, data and technical services vendors with annual sales averaging about $10 million, as well as a handful of investment bankers and venture capitalists.
Survey participants rather uniformly agree that they would “Probably” consider a sale of the company in the next few years, despite feeling that now is not a good time to do so. On the other hand, the same participants show little enthusiasm for buying another company despite feeling that now is "Probably" or "Definitely" a good time to do so.
For buyers, the news is good. In general, sellers seem to have a realistic perception of their company’s lower valuations, and since few others buyers are afoot, the competition for deals is low.
To request a complimentary copy of complete inaugural Survey results, along with charts and graphs, click here.
“We suspect – based on our experience in the market – that such attitudes are driven by two factors: the financial circumstances of the smaller respondents’ companies, and their appetite for continuing to work under such circumstances should they go forward another few years,” said Kuhn Capital Principal Ryan Kuhn.
The ongoing study tracks current market perception, rather than the value of market transactions, as an indicator of the current M&A climate.
“Many surveys detail the number and value of information technology M&A transactions. We thought the time had come for a survey that measures the attitudes of IT owners and senior executives towards deals, and how these feelings may change over time. After all, knowing attitudes is crucial to understanding why transactions are, or are not, occurring,” said Kuhn.
Website visitors are invited to click here to take the next Survey.
About Kuhn Capital
Based in Chicago, IL, Kuhn Capital is the Midwest’s premier IT mergers and acquisitions advisory firm. The company provides M&A services to companies that leverage information technology and intellectual property — software, data, network, publishing, Internet, research, and consulting firms; and companies that market heavily-branded products. Clients have included Perficient, KEMA, Ameritech, Sony, and Cognizant.
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