Technology

 

Technology Disrupts the Status Quo and Accelerates Business Evolution

While technology enablement is widespread through all areas of the economy, Cherry Tree primarily focuses on the B2B software and services segments of the Technology sector. B2B technology providers typically have limited short-term sensitivity to changing economic conditions due to their business critical solutions and high switching costs. Also, these providers often have recurring revenue components that results in less volatility of business results and favorable cash flow dynamics.

 

Subsector Expertise

  • IT Services
    The IT Services subsector includes businesses that are engaged in the design, integration, development, implementation, operation, and support of commercial off-the-shelf (COTS) and customized solutions for business. These types of companies include firms engaged in IT Consulting, Outsourcing, Systems Integration, Staffing, and Security.
  • Technology Enabled Business Services
    The Technology Enabled Business Services subsector includes businesses that provide outsourced capabilities for customers’ business functions, and move beyond basic Business Process Outsourcing by using technology to automate and deliver solutions.
  • Software/Saas
    The Software and SaaS subsector includes providers that leverage their expertise in vertical markets or business processes to create configurable proprietary applications to guide workflows and automate the manual processing of information.
  • Information Services
    The Information Services subsector includes businesses that create information themselves or aggregate it from other sources and process it for vertical markets or functional needs, and deliver that information via technology-enabled channels.
  • Infrastructure Services
    The Infrastructure subsector includes businesses that offer capacity and access to physical technology hardware and networks as an outsourced service of critical functions, leveraging economies of scale and network effects to operate.
  • Information Security
    The Information Security subsector includes businesses that are involved in protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction in order to provide integrity, confidentiality, and availability.

TECHNOLOGY TEAM

Mik GuseniusMik
Managing Director
mgusenius@cherrytree.com
952.253.6005

Mik has more than 14 years of experience advising companies across a range of industries, he has been involved in more than 30 completed M&A transactions totaling nearly $1 billion of transaction value. >more

Elmer Baldwin
Senior Executive Director
ebaldwin@cherrytree.com
952.253.6001

Elmer has a 30-year track record in information technologies, professional services, SaaS and digital media, including 20 years as President/CEO of five information technology companies. Mr. Baldwin is a skilled executive, operator and advisor with early, turnaround and growth stage companies. >more

Scott Brown
Managing Director
sbrown@cherrytree.com
952.253.6017

With a focus on Healthcare and Technology M&A, Scott brings a unique skill set as a Founder, Inventor, Executive, and Board Member. His experience spans over 25 years at Public and Private companies. >more

Contact Us

INDUSTRY UPDATE

Technology Enabled Business Services (TEBS)

We divide the Technology Enabled Business Services (TEBS) space into: Software, Business Process Services, Information Services and Infrastructure Services. The newsletter highlights transactions and the quarterly updates include detailed operating and valuation metrics of an index of 100 publicly-traded TEBS companies.

TEBS AUTHOR
Mik Gusenius

INDUSTRY UPDATE

IT Services

Cherry Tree & Associates has been actively monitoring trends and activity in the Information Technology Services space for more than 10 years. Along with monitoring the large, public players in the space through our public company index (IT Services 60), Cherry Tree closely tracks middle-market M&A trends that directly impact middle-market owners, operators, buyers and sellers. The five sectors within the ITS 60 are:

  • IT Solutions (Integration & Transformation)
  • IT Consulting
  • Outsourced & Managed IT Services
  • Staffing
  • Value-Added Tech Resellers

IT SERVICES AUTHOR
Elmer Baldwin

INDUSTRY UPDATE

Information Security

Cherry Tree & Associates (CTA) has advised entrepreneurs, CEOs, investors, and Boards of Directors for more than 40 years. Each quarter we highlight Information Security (Info Sec) industry performance, transactions, trends, and valuations. We use the CTA Info Sec Index (CISI) to represent the industry. The CISI is comprised of over 100 broad, global, public, Info Sec companies

QUARTERLY HIGHLIGHTS:

  • The Info Sec industry’s growth continued its acceleration.
  • M&A and funding transactions and funding values are all at 5 year lows.
  • Valuations have seen an uptick since last quarter and are trending higher.
  • Growth continues to be valued more than profitability.
  • Companies are prioritizing organic over inorganic growth.

INFORMATION SECURITY AUTHOR
Scott Brown

Select Transactions

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

Cherry Tree Advises Scientific Learning on their Sale to Carnegie Learning

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

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