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Buy-Side Services

Our Unique Buy-Side Value Proposition

Medium to large software companies (both public and private) have often hired us for engagements in spite of direct competition by much larger and higher profile investment banks. These clients have selected us for our unique breadth of skills and the unusually deep knowledge of software markets and technologies embodied in our team.

With what we bring to the party, you can expect to see progress almost immediately. Following is a representative list of services we might provide in a typical buy-side corporate development engagement:

Research product categories and market segments to identify opportunities that offer the best synergy and highest growth potential

Present options to achieve your strategic partnering objectives including advice on how to best complement your company’s strengths and weaknesses

Collaborate with your team to develop and gain consensus on a plan to target and evaluate prospective partners, which might include a “best fit” profile, establishment of selection criteria, and development of financial models to name a few

Interview and perform preliminary evaluation of targeted prospective partners

Meet regularly with your team to review evaluation process and identify next steps

Provide front line management of each partner opportunity, including active management of “action items”

Propose appropriate deal structure, terms and valuation and collaborate with your team to establish deal parameters and negotiating strategy

Lead term sheet and contract negotiation according to agreed upon deal parameters with ongoing guidance from you and your team

When executing tasks on the above list, Stratagem distinguishes itself in its ability to work at both the executive strategic planning level and in the trenches, performing the tasks necessary to push the plan forward. For example, we are qualified to perform a first level review of a partner’s product architecture, evaluate the quality of their sales pipeline and identify potential issues within their financial statements.

Once we establish how to work with you and your team, you can leverage our broad range of skills, experience and executive management sensibilities so that your team can focus on running the day-to-day business with a minimum amount of distraction.

We also take pride in the fact that we won’t automatically recommend acquisition of a company that survives the evaluation process. While M&A deals typically command the highest valuation (and hence the highest commission for us), we treasure our role of “trusted advisor” and always evaluate a prospective partner with your best interests in mind, not ours. In previous deals, we have proven that we won’t hesitate to recommend against an acquisition if we believe our client’s objectives can be more effectively met with a lesser type of partnership (e.g. a source code or OEM license).

Using Strategic Partnering To Build and Realize Value
We approach each client engagement as a value-building process, not an M&A event. We expressly maximize the potential from every strategic partnering contact, opening the door to a full spectrum of strategic relationships. Read more

Customized Marketing Messages Make Your Company Stand Out
Our unique, highly customized way of presenting opportunities to prospective partners has repeatedly reaped tremendous rewards for our clients. Read more

Astound Acquired by Genesys after Two Prior Value–building Deals
A lucrative OEM partnership, a $5M strategic investment and a $65M company sale closed in a 12-month period. Read more

Evolve Raises $10M from Sierra Ventures
Evolve went from this round to a successful IPO instead of an impending cash flow disaster. Read more

Architecting and Executing Merant’s Strategic Partnering Initiative
Merant, a public software company with $120M in revenue and new management, retained Stratagem to put process in place and close strategic transactions.
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