The enterprise software industry is an ever-changing, dynamic market space.  M&A in this sector will continue to provide liquidity for many companies: point solution providers are finding it increasingly difficult to make enterprise-class sales, yet large software vendors are continuing to expand their functionality, either through internal development or through acquisitions.  Pharus Advisors understands how the pieces of this puzzle fit together, and is working on the sell-side and buy-side to consummate successful transactions.

Key trends affecting companies and transactions include:

• Convergence: Broadband networks and EAI are convergencing as a need to integrate separate business functions and enterprise software applications to enable "e-Collaboration".
• Value Within Companies is Shifting to Intangible Assets: Streamlining the flow of information has become dramatically more powerful than retooling plant, equipment or machinery; enterprise software is a key component of the solution.
• "e-Collaboration" Will Drive Productivity: e-Collaboration is enabling more fluid information exchange and helping streamline complex business processes, thereby reducing costs, enhancing customer service, increasing productivity and boosting profits.
• Functional Suites Prevail: Despite a trend toward consolidation and end-to-end integration, we believe there is a point of diminishing returns in using a single vendor for all of an enterprise's application requirements.
• Innovators Dilemma: New business paradigms will drive the emergence of new software segments/niches and groups of companies over time.
• M&A is a Critical Value Driver: Most ISVs must consider M&A alternatives at some point in their industry and/or company lifecycle to be successful - especially as their lifecycles enter the distribution and shakeout phases.