Codify_Partners

For over the last three years, we've been discussing the impact of AI. For software companies, embracing AI is not just an opportunity—it's essential for survival and growth. Here are nine ways you can leverage generative AI to become more efficient, competitive, and profitable while enhancing the value of your software company. We begin with the easiest implementations, which take only a few months, and move towards initiatives that may require 1-2 years. Enhance Marketing C

As the CEO of a company entering the mergers and acquisitions (M&A) market, preparation is essential. Effective communication with buyers is a significant part of that preparation. Furthermore, if key employees, such as the CFO, CTO, or high-level product managers, will participate in the M&A process, they must also be ready to discuss their roles with potential buyers. As the CEO, it is your responsibility to ensure they are adequately prepared. Ineffective communication wit

A new wave of financial buyers is aggressively bidding for companies, particularly targeting smaller SaaS firms that focus on vertical markets. These buyers are attracted to the financial predictability of subscription revenue, which enables them to make bold offers. To assess a company's annual recurring revenue (ARR) and its revenue predictability, they employ various metrics. Two of the most significant metrics are Gross Revenue Retention (GRR) and Net Revenue Retention (N

Rollover equity is a strategy frequently used by Private Equity (PE) firms when acquiring tech companies, and it has implications for both sellers and buyers. In a rollover equity transaction, the seller invests a portion of the sale proceeds back into the company being acquired. Specifically, in a PE transaction, the seller invests part of their proceeds into the PE firm's entity that is purchasing their company. For example, if the owner of a profitable tech company sells t

A healthy level of ego, along with self-esteem or self-importance, can be beneficial. It can fuel a person's drive, focus, and resilience when challenges arise. However, excessive ego can hinder the success of a mergers and acquisitions (M&A) deal. In fact, it can ultimately kill the deal. Ego is a natural part of human behavior, and when individuals engage in an M&A process, their personalities and egos come into play. It's crucial for both the seller and potential buyer to

We frequently receive this question from CEOs: What do you do after selling your company? This is an essential consideration if you are...

We assist MNEMO in enhancing its performance by designing tailored portfolios, supported by resource reallocation, integrated business-unit strategies, and structured planning processes that position the company for success. MNEMO is a leading Spanish firm with a global presence, operating offices in Spain, Colombia, and Panama since 2001. The company offers a diverse range of services and products in the technology and security sectors, including: Cybersecurity. MNEMO deli

Choosing your M&A team is a critical step in your M&A journey. The legal counsel that you select will have an impact on your process, so...

As a business owner, you are emotionally tied to your company. You've spent years building and operating a business that has become an integral part of your life. Therefore, selling that business is more than just a straightforward transaction; for many owners, it feels like losing a loved one, making the experience fraught with emotion. These emotions can significantly impact the financial outcome of the sale. Enrique Dominguez, Managing Partner at Codify, notes that company

The Rule of 40 is a financial metric commonly used by investors to assess the attractiveness of a software company. According to the Rule of 40, the sum of a company's annual growth rate and its profit margin should equal or exceed 40%. Software companies that meet or exceed this benchmark are generally viewed as attractive investment opportunities, while those that fall short typically are not. In this context, profit margin refers to the EBITDA margin, which is calculated a

When business buyers have initial conversations with business owners who wish to sell their companies, one of the first questions is “Why...

Over the last six months we have sold two small startups (sub $10mm deals) to large companies which are valued at over $1 billion each....

Once many IT industry company valuations have past their peak it is difficult for many business owners to extract more value from their...

As a tech entrepreneur, it’s easy for you to see the value and potential of your company. You have the vision. You put in the long hours...

Due diligence is one of those terms that every business person is familiar with but doesn’t actually understand what it means. “Due...

October 4, 2021. MTIP is excited to announce MTIP Fund II’s fifth investment in Mediktor, the most accurate Artificial Intelligence...

20 April 2021 – Amsterdam. Dott, the European micromobility company, announces today the signing of an $85 million Series B funding round...

Codify Partners acted as the financial advisor to BusUp Technologies (BusUp) with its private placement. BusUp, the #1 corporate bus...

Codify Partners acted as the financial advisor to Worldsensing with its divest of the Smartcities' Onemind business unit. Oak Brook, IL...

Congratulations to our client Mobeewave, founders, and investors, by Apple's acquisition of the company. It was great advising Mobeewave...