BMI’s team specializes in software and technology M&A, with experience selling IT services, consulting, and staffing firms, as well as ERP, education, and data management software. Our lead Director brings over seventeen years of executive leadership and owner-operator experience in software and technology services.
Software & Technology Services
Software & Technology Services M&A Team
Brendon Derr
Brendon brings over 20 years of experience supporting the strategic and growth goals of business owners in the software and IT services sectors. He has held executive roles in various firms, including staffing, consulting, and marketing services. In 2020, Brendon launched his own strategy consultancy, leading successful M&A exit strategies. He also founded the RevExecs Roundtable, a peer-to-peer insights exchange for professional services CEOs.
Tom Kerchner
Tom is a founder and current President of BMI. He has worked on hundreds of transactions for over 40 years and he brings this deep expertise to each of our clients including in the software and technology space. His experience ranges from large Fortune 500 companies to lower middle market private companies.
Notable Transactions
Ideametrics
Cloud Consulting Company
Sold to:
Smart ERP Solutions
xTuple
Software: ERP
Sold to:
CAI Software
Aviso Retention
Software: Predictive Analytics for Student Retention
Sold to:
Watermark Insights
Amberleaf
IT Consulting: Customer Analytics & CX
Sold to:
Mastech Digital (NYSE: MHH)
Diversified Technical Solutions
IT Staffing
Sold to:
Staffing Company
ClaraStream
Software: Product Data Management Solution
Sold to:
Strategic Buyer
Penn Tech Deployments
IT Hardware Logistics & IT Staffing
Sold to:
Private Investors
Astec
Software: Insurance Software Solution
Sold to:
Cloud Development, Migration and Management Services Co.
DataWorks
IT Consulting: Database Services
Sold to:
Private Investor
What Our Clients Say
“BMI suggested we delay selling and helped put changes in place that increased our immediate profitability and made us a more attractive, valuable company.”
Owner – Astec Systems, Inc.
“BMI represented my business well, helped me through the selling process from beginning to end, and worked with me as I was deciding what opportunity was best for my future.”
Michael Russo – Diversified Technical Solutions, Inc.
Insights & Resources
2024 Q1 IT Services Market Report
The technology services M&A market in 2023 faced challenges amid economic uncertainties, leading to a 21% drop in deal volume from 2022. However, the demand for digital transformation remained strong, particularly in cloud computing, cybersecurity, and AI, driving acquisitions. Private equity played a significant role, adding competitive pressure and driving up valuations for companies with…
Download
Q1 2023 Technology Services Market Report
In 2022, the technology services M&A market had mixed results, with lower middle-market deal volume and valuations decreasing by 10-15% and 20-25%, respectively. However, downturns historically present attractive opportunities for strategic acquisitions, and compressed valuations may make many deals too good to pass up. In 2023, private equity firms are expected to be the primary…
Download
2022 Q4 Software M&A Market Update
After a record-breaking performance in 2020 and 2021, the software M&A market is leveling off. Top of market valuation multiples of 10x to 12x ARR have all but faded, while deal volume in the tech sector appears to have softened by roughly 30%. Thank the economic slowdown. The rise of inflation has lowered prospects of…
Download
Q3 2022 Technology Services M&A Market Report
Heading into 2022, the market outlook for technology services M&A was initially strong, with businesses managing the shift to hybrid and in-person work environments and emerging technologies becoming more mainstream. However, the recent macroeconomic developments have dampened what were only months ago bullish expectations. Download the full report below to understand the outlook for M&A…
Download
Case Study: How a Higher Ed Focused Software Company Found the Right Buyer
Introduction Aviso Retention is a student retention software solution for higher education. It uses AI and predictive analytics to help colleges and universities increase the engagement, retention, and degree or certificate completion of underserved students. Alex Leader founded Aviso in 2012. Within less than a decade, he and his team had bootstrapped it into a…
Q1 2022 Software M&A Market Report
Reeling from the widespread impact of the COVID-19 pandemic, software M&A has proven resilient in the face of a renascent pandemic, market volatility, rising inflation, and continued disruption to global supply chains. After a record-breaking year for software M&A in 2021, optimism for another supercharged year remains, despite potential market headwinds and geopolitical turmoil. Download…
Download
Identifying Code Risks in Software M&A
Strategic fit and table stakes KPIs aren’t the only things acquirers evaluate during the software M&A process. A software code review is one of the many components that is often overlooked by sellers. Learn more about Matt Tortora.
SaaS KPIs That Matter Most to Investors & Acquirers
There are over a dozen KPIs (key performance indicators) investors, and acquirers rely on when evaluating an investment or acquisition. Optimizing these metrics provides SaaS companies with a path to sustainable growth and puts them in a position to raise growth capital or successfully exit. This deck offers founders and CEOs an overview of what…
Q3 2021 Software M&A Market Report
The SaaS sector aced its first major test in 2020 this proving its resiliency. In the early months of the pandemic, M&A came to an unprecedented halt as the world shut down. However, by the second half of the year, the buyer confidence and deal-making soared to record highs, resulting in some of the largest…
Download