Washington, DC, (March 2, 2022) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture, and corporate finance services, has been recognized as a leading M&A advisor in the software industry. FOCUS was named to Axial’s ranking of the Top 50 lower middle market private equity investors and M&A advisors in software, mainly due to its work on sell-side transactions.
“Software is part of FOCUS’ Technology Services industry team, which is one of the most active within the firm,” said Kahla Cooper, FOCUS Director of Marketing. “Our team of investment bankers and former technology company executives has advised hundreds of leading technology services businesses over the past 40 years.”
Axial is a platform for deal sourcing, deal marketing, and relationship-driven business development. Its Top 50 software M&A list was generated based on a weighted formula that considered the number of software deals that achieved an intent of interest, an executed letter of intent, or a successful closing.
Dani Forman, an Axial director, noted that “if you look at the stock market, these are tough times for technology companies
trying to raise capital. The Nasdaq 100 technology sector is down 20% since mid-November. And some highflyers have fallen far further. Little of this turmoil, however, is reaching small and midsize technology companies. Indeed, there is a world of technology companies far from the pressure cooker of Silicon Valley. Those main-street software companies are now attracting private equity investors who traditionally ceded the technology sector to the more risk-tolerant venture capitalists.”
In 2021, the number of technology companies marketed for sale on Axial’s platform increased by 56%. Software companies accounted for more than 40% of technology deals done last year, the largest category. That level of activity is expected to continue this year. “Bankers and investors focused on the lower middle market expect a brisk pace of acquisitions of technology companies in 2022, with capital readily available to fund them,” Forman said.
Stan Gowisnock, FOCUS Managing Director and Technology Services Team Leader, said the software M&A market shows no signs of slowing down.
“Private equity groups and other investors continue to look for rollups and good companies to grab. Good inventory is getting harder to find,” he said. “Many of the players that haven’t been able to get in the technology space are becoming more aggressive.”
“Looking further down the road, Gowisnock said today’s bull market lays the foundation for another one several years from now. Everything works in cycles, so the next wave will likely overlap with this one,” he explained. “We will likely see those investing heavily today consider exiting in several years, and the M&A market will just continue in an even bigger way.”
About FOCUS Investment Banking
FOCUS Investment Banking is a trusted name in middle market M&A advisory services worldwide. Whether helping to sell, buy, or raise capital, FOCUS strives to maximize the value of every transaction for the benefit of its clients. Securities transactions conducted by FOCUS Securities LLC, an affiliated company, registered Broker Dealer member FINRA/SIPC.