Technology & Software
We are witnessing a very real and very meaningful shift in private equity’s TechTonic plates. SaaS, enterprise software, and enhanced connectivity have lured ever-increasing amounts of private capital into the sector. SaaS’s subscription-based model, in particular, has proven a game-changer, providing both a reason to invest in tech and a reason to hold those investments for longer periods of time.
As the tech sector has evolved, so too has the PE investment thesis: a new wave of tech-specific sponsors are prioritizing growth and revenue expansion over cost optimization (the latter still certainly an important part of the PE playbook, however). Value creation levers via enhancements in sales, customer service and product development will prove critical to PE-technology investing longevity.
Where We Play
At Accordion, we don’t just visit the tech space…we live in it. We understand the unique value creation levers within the industry and help translate the universe of SaaS acronyms (LTV, CAC, MRR, ARPU) into meaningful insight. From KPI templating, sales force effectiveness and reporting automation for management, to carve-out, roll-up, add-on, and integration support for the acquisitive sponsor, we’re right at home in the tech sandbox.
It’s been said that private equity has a crush on technology. But dismissing the growing relationship as a crush would not only do it a significant disservice, it would miss the undercurrents at play that are making technology such an attractive, long-term private equity target.”