Warning signs in VMS acquisitions – and how to address them

Why is this important?

When it comes to acquiring mission-critical enterprise applications, companies like Constellation Software and its peers have honed the art of identifying potential investment opportunities over decades of painstaking research, as well as trial and error. They tend to target battle-tested vendors that cater to large, sticky enterprise clients.

A safe bet, then? No!

Such acquisitions come with their own unique sets of challenges, which we explore in this article. We will delve into the critical “yellow” due diligence flags, and provide recommendations for addressing them.

Specifically, we look into:

• Overdue receivables

• Profitability of professional services projects

• Over-reliance on large clients

• Founder influence and technical debt

Subscribe to RollUpEurope Premium to read the rest.