Being Acquired

Ready to Sell Your Software Business?

We Acquire, Build & Manage Exceptional Companies

The businesses we buy represent a lifetime of effort and talent, and they share three traits that we believe make them Exceptional:

  • An outstanding manager
  • Consistent profitability
  • Above-average growth

Whether you want to sell your software business for reasons of health, estate planning or a burgeoning interest elsewhere, those who work with FOG Software Group share one other trait:

  • The desire to have their businesses continue to operate in accordance with the history and values that made them Exceptional in the first place.

FOG Software recognizes the value of these rare companies and, following an acquisition, we leave them to continue their Exceptional operations as they have in the past.

Exceptional vertical market software companies are exceedingly rare.
Good ones, happily, are more common.

The Good companies we acquire are generally the first or second-ranked players in their verticals, and are working to establish a solid track record of growth and earnings.

When we buy a Good company, we identify and address the reasons they have not yet become an Exceptional company. To this end, we offer coaching and resources in a number of areas, including:

  • Establishing values and capital allocation processes
  • Profit-sharing programs
  • Benchmarking against our other businesses
  • Sharing best practices with other Fog Software Group, Vela and Constellation Software companies
  • Formal management training
  • Ongoing mentoring

FOG Software Group does not take over the day-to-day management of our businesses. We continue to rely on the managers and employees of our subsidiaries to run their businesses well. Managers who are excited at the prospect of creating an Exceptional company and who are willing to embrace new ideas tend to flourish at FOG Software.

Our Acquisition Criteria

    • We use somewhat arbitrary methods to determine whether or not a company is a good fit for the FOG Software Group and, over the years, we’ve honed our eye to the point where we can very quickly establish whether or not a company is of interest. The first thing we do is use history (not forecasts) to determine whether a company is

Good

    • or even

Exceptional.

Exceptional Companies

We are pleased to hear from brokers or principals of Exceptional businesses that meet the following criteria:

      • A mid- to large-sized vertical market software company
        • Typically a minimum of $1-million earnings before interest and tax
        • Consistent earnings and growth
        • Generally EBITDA/revenue + revenue growth of 20 percent or more per year
        • Experienced and committed management
        • An offering price that has been determined

Good Companies

We are pleased to hear from principals or representatives of Good businesses, providing they meet all of the following criteria:

      • Number 1 or Number 2 market-share holder in a niche vertical market
      • Revenues of at least $2 million
      • Hundreds or thousands (not dozens) of customers
      • An offering price that has been determined

Our Philosophy

      • We promise the strictest confidence and will generally respond to inquiries within one business day
      • We will not engage in unfriendly takeovers
      • Although we prefer 100 percent ownership in our companies, we will buy less if the sellers wish to continue to participate in the success of their business

Contact for Acquisitions

Brokers and principals of exceptional and good software companies are encouraged to submit a contact form (top, right) or call:

Eric Herrmann
Vice President, Mergers & Acquisitions
FOG Software Group
One Parkway North, Suite 400-S
Deerfield, IL 60015
+1 847 948 7180