Software Product Development
Custom Application Development and Software Engineering projects continue to see growth with enterprise level clients. As major brands continue to look for ways to engage their clients digitally, software engineering firms with broad deliver capabilities are leading the charge. 7 Mile Advisors anticipate M&A activity in this sector to continue on the upswing in 2H 2016 and 1H 2017.
- 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