A mid-market PE firm identifies high-value Software assets for investments

Client’s challenge

A reputed mid-market Private Equity firm with a portfolio of high profile investments was looking to evaluate niche software segments.

To understand the software market better, the client wanted to develop a deal sourcing pipeline for different target software sectors and identify potential assets​.

They wanted detailed research on specific categories in order to gain a comprehensive picture of the market. This research was to focus on deriving the market size of the industry, key growth drivers, emerging use cases in the market, and acquisition-worthy targets​.

How Zinnov helped

In the initial phase, we mapped top use cases across the industry value chain, and software providers across these use cases​. This process was crucial to gain a competitive edge by providing customers with unique products and services that are not offered by the other providers.

Further, we created an acquisition targets pipeline for the client based on the investment thesis,​ which significantly helped identify potential assets according to their near-term business priorities. For the final phase of our research, a deep dive analysis of the client’s selected targets was done to check the scope for maximizing return on investment.​

The detailed research included perusing multiple sources and doing simultaneous analyses from them. Some of the resources that were thoroughly used were: Technology content sources such as TechCrunch, CXO interview intercepts, social handles (LinkedIn, Twitter), talent assessment through LinkedIn, and other job portals.

Impact created

Our strategic work with the client led to the development of a monthly market landscape report which was a core component to reach their end goal.

Our efforts were also channelled towards thoroughly checking the assets for investment suitability.

Lastly, we assisted in the identification of the top 30-40 potential assets fitting the investment thesis​ which could be targeted by the client. Through collaboration and deep-dived analysis they were able to identify niche software sectors that they can explore for driving growth and future acquisitions.