Mergers & Acquisitions is often a misunderstood interpretation of an act and not a strategic consideration. But in times of turbulent economic – like now – we often case a lot of interesting prospects and we are encouraged to take on the task of the M/A act. If your CEO, members of board or business angel approach you with the question to start an acquisition, consider why you should do it and how. Merging an acquisition is hard work – people work and feelings work. Do not start looking at consolidating the phone systems. Look at the people.
Here is some reasons for acquisitions. Continue reading
And let me rephrase that already… I expect you to have M/A skills and understand how to spot a killer application and a great investment subject. And I don’t mean buying some IT company for a buck doing due diligence over a bottle of red wine. If you are that stupid, go back to school or learn from your (countless) mistakes Mr.!
But after stressing the capital industry with my energy and a lot of business plans, I find it confusing and amusing that both VCs, BEs and the rest of the venture market does not have a clue on how to evaluate SaaS companies, and why the window to opportunity is now and 6-9 months. Let me explain:
I must admit that Denmark sometimes is a very strange and difficult country to understand. Integration and the danish learning curve is quite huge, and we act strangely very so often.
2nd of december 2008, KMD – a Danish IT company running IT and data systems for municipalities was sold to a capital investor. Large debate started, but everyone seemed glad that the old, hard-to-deal monopoly as broken, and a lot of the IT businesses in Denmark was really looking forward to get into the pockets of a huge network of municipalities. But again Denmark has amazed me.
Not only did the Danish government own a big chunk of KMD, but also they claimed that they wanted to keep some of these money – set a side (600.000 mio. danish crones). Only to bring that amount of money directly into a newly formed IT company Kombit A/S – focus to run municipalities in Denmark. So what was the case of selling off KMD anyhow?