Enterprise Resource Planning
M&A activity in the ERP software sector remains robust as the large players find new ways to expand their total addressable market to fuel revenue growth and accelerate movement to the cloud. New logos and integrated solutions (rather than disjointed point solutions) are key drivers larger buyers are seeking in a target.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants