1. http://www.mergerduediligence.com
Acquisition of small targets
by large software companies

2. Agenda
– PMI Approach
– Success factors in small target acquisitions
– Issues and risks in small target acquisitions
Agenda

3. PMI Approach for small and
medium sized targets
• Goals
– Ship products ASAP, scale revenue
– Align and integrate development and
operations with acquirer immediately
• Topics worth mentioning
– Product roadmap incl. shipment dates exists at
end of due diligence
– High level integration plan exists at the end of
due diligence

4. Success factors in
acquiring small targets
• Minimize attrition in target
• Communicate directly and openly
• Have coaches buffer and translate large
company requirements
• Fast and full integration IF
• Acquirer understands and can implement the
business model of the target (administration, sales,
development)

5. Typical Issues, risks with
small targets
• Acquirer
– Complexity of small targets leads to high
workload
– Acquirer always outnumbers the target
• Target
– Overwhelmed (by workload, compliance and
reporting requirements, size and org of
acquirer)
– Attrition, Brain Drain

6. More information here:
http://www.mergerduediligence.com