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January 2018

Enterprise Software

Sectorwatch

2017 saw a flurry of headline enterprise software transactions in which the biggest names sought to retain and grow market share amongst a maturing landscape of cloud software platforms. Most notably, deals in the AI / Machine Learning, Analytics, Cloud Enablement, and Cyber Security attracted strategic priority

Industry Trends:

• 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 is less than the average of the last 3 years EBITDA margins, which may signal further consolidation