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Companies in LOI
Companies in LOI
Rebound Factor # 1
Pent-Up Buyer Demand
Rebound Factor # 2
Pent-Up Seller Demand
Rebound Factor # 3
A Recovering Economy
• The U.S. economy has slowly improved since late
2002
• However, the economy is still fragile
• High oil prices
• Inflation risk/Interest rate increase
• Geopolitical tensions
• The European economy is recovering at a slower
pace
• Strong Euro hurting exports and tourism
THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.
Rebound Factor # 4
Corporate Earnings Improvement
• Cost cutting has led to a steady improvement in
corporate profitability
• 76% of the S&P 500 companies that have reported first
quarter earnings have surpassed earnings
expectations1
• 19% average earnings growth expected in Q1 ‘042
• Companies adding cash to balance sheets
Rebound Factor # 5
Stock Market Rally
• The end result is that there are more active buyers today
creating competition for deals
Rebound Factor # 6
New Capital For Acquisitions
• Software companies are now able to raise
additional capital
– Secondary offerings, private placements, and debt
offerings
• Retalix - $65 million stock offering (April ‘04)
• iVillage - $125 million stock offering (April ‘04)
• Tier-1 companies testing IPO markets (Spring ’04)
• Google, Salesforce.com, Brightmail
• Flood of new IPO filings
– Lindows, Bluenile.com, Blackboard, shopping.com
• Over $80 Billion in private equity overhang
THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.
Webinar Topics
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Business Intelligence
Digital Media
Development Tools
Engineering
Enterprise Infrastructure
Enterprise Software
TECHNOLOGY COMPANIES WORLDWIDE.
Internet Infrastructure
IT Service
Which Sectors Are Active?
Security
M&A Activity in Q1 2004
Storage
Wireless
Vertical Market
THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.
– Content Filtering/Anti-Virus
• ISS/ Cobion AG
Webinar Topics
International Search
Geographic Mix of M&A Transactions
European
18%
Cross-Atlantic
22%
North American
60%
7.00
6.00
5.00
P/S Multiple
4.00
3.00
2.00
1.00
0.00
1H:98 2H:98 1H:99 2H:99 1H:00 2H:00 1H:01 2H:01 1H:02 2H:02 1H:03 2H:03 1Q:04
THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.
Deal Structure
Consideration Analysis
41% 46%
Webinar Topics
Deal Killers
• Unrealistic value expectations
• Unreasonable demands during negotiations or an
unwillingness to give in on some issues
• Poor financial reporting
• Not providing the buyer with information in a timely
fashion
• Irregularities discovered during due diligence
• Missing short term projections
• Personality conflicts or cultural fit issues
• Using inexperienced M&A, legal or accounting firms
THE PREMIER PROVIDER OF M&A SERVICES TO
TECHNOLOGY COMPANIES WORLDWIDE.
Questions?
Bruce D. Milne
President and CEO
brucem@corumgroup.com
Ward Carter
Executive Vice President
wardc@corumgroup.com
David Keith
Senior Financial Analyst
davidk@corumgroup.com
Corum Group Ltd.
10500 NE 8th Street, Suite 1500
Bellevue, WA 98004
425-455-8281
www.corumgroup.com