Continue to share my reflections after COFES today, I want to touch CAD/PLM mergers and acquisitions (M&A). COFES is a place where competitors can meet in a very relaxing atmosphere and have tête-à-tête conversation, which can lead to partnerships, special deals, and acquisitions. Also, COFES is a good place to meet people that can advise and facilitate mergers, acquisitions, and finance.
Ralph Verrilli of Madison Park Group (MPG) is one of them. I attended Ralph’s session where he shared MPG experience and information about trends in acquisition and finance deals related to CAD and PLM.
I captured a few slides from Ralph’s presentation and I wanted to share it with readers of Beyond PLM blog – M&A strategies of major CAD/PLM vendors. Pay attention to highlights and recent deals.
The following slides show you industry trends driving M&A in CAD/PLM industry.
My PLM twisted mind favorites are clearly #3 and #4 – focus on emerging manufacturing markets, mid-size business, and cloud delivery. However, you can find your favorites in the list as well.
What is my conclusion? Engineering and manufacturing business is special. There are no new companies on the list – the youngest company (Comet Solutions) was founded back in 2001. The value of existing businesses is high because companies are very slow to make changes. It can introduce some difficulties to companies trying to replace existing vendors but create promises to companies focusing on new market and white space. Just my thoughts…
Best, Oleg
Disclaimer: I’m co-founder and CEO of OpenBOM developing cloud-based bill of materials and inventory management tool for manufacturing companies, hardware startups and supply chain. My opinion can be unintentionally biased.
