Thompson Coburn Chicago partner Nathan Viehl was quoted in an article by Mergermarket and Dealreporter on how private equity activity involving non-technology sectors is expected to pick up in the first half of 2024, with software M&A following in the second half of the year or early 2025.
Nathan explained that software companies, once laser-focused on growing their user bases to land the next round of venture funding, are now shedding workers and cutting costs in a quest for profitability, with varying degrees of success.
“The balance sheet repair that’s been going on for the non-software category is largely complete and these companies are currently being shopped to exit,” he said. “The reason for the lag in the software business is just simply that the balance sheet repair has been more complicated because (many) software companies are not profitable.”
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