M&A Knowledge for the IT Services Business Community.

Navigating IT Mergers and Acquisitions with Transaction Therapy™

Technology Service Providers drive growth of small and medium size businesses

In the constantly evolving field of information technology, Technology Service Providers (TSP) have emerged as core growth drivers in the SMB space. Businesses of every size have discovered that technology pushes revolutionary change and that quick adjustment to new ways of doing business is now a requirement if they want to stay even or jump ahead of their peers. The 35,000+ independent IT services companies across the USA are the unsung heroes who make all of this happen behind the scenes, and this enormous undertaking has only been feasible because of their efforts.

Cogent Growth Partners: A Catalyst for TSP Growth

Among the myriad channel partners across the entire TSP community, Cogent Growth Partners stands out as a catalyst for growth and realized dreams. Operating exclusively in the TSP space as an IT focused M&A advisory firm since 2010, Cogent plays a crucial role in facilitating the expansion of IT services companies by joining our vetted clients with the best candidate companies via a merger or acquisition.

Focusing on the “opportunity” first – why should these companies join forces in the first place – and only discussing “the money” last, after everyone can clearly see why doing a deal makes sense, helps the value become self-evident to both sides — actually maximizing purchase price. Unlike a brokered “auction process” where it’s simply all about the money, and the opportunity is secondary (which is why we’re not a fan), what distinguishes Cogent is its unique and invaluable approach to getting transactions done – we actually care about the people involved (and because the seller is now our client after the deal is closed), and we do the bulk of the work product needed to make the transaction happen.

Managing IT Mergers and Acquisitions with a Therapeutic Approach

M&A transactions can be an emotionally charged activity, often under tight timelines, and can feel impersonal and mechanical. Our ability to navigate these dynamics, serve as a sounding board for both sides, and provide strategic guidance throughout the transaction timeline, proves invaluable in helping ensure a smooth and successful outcome. We call this role of facilitating the deal with a human touch, Transaction Therapy™.

Cogent’s entire team collaborates very closely with the principals on both sides of the table, and all their key stakeholders, throughout the entire transaction lifecycle, providing our therapeutic assistance during every step along the path. Our buyers and sellers all agree that this helps both sides to stay focused on the opportunity and all the underlying reasons behind the deal, preventing the minutiae from obscuring the bigger picture—a common pitfall in M&A transactions resulting from an auction process.

Building Trust, Forging Relationships

Transaction Therapy™ is centered on the cultivation of trust-based reciprocal relationships between buyer and seller, which is crucial to the long term success of every deal. Similar to a successful dating progression leading to a happy couple, Cogent encourages both sides to build rapport and trust from the outset, engendering a positive win-win attitude that promotes the exploration of combined corporate culture, customer fit, technical prowess, and the congenial environment needed to not only preserve the value of the acquired company’s management, employees, and customers, but flourish as a combined team long after the deal has closed. Importantly, successful transactions are not akin to buying a property or some other fixed asset, they are actually akin to a successful marriage resulting in a larger group of talented people all on the same team, and all with a common goal.

Transaction Therapy™ in Action

Transaction Therapy™ is vital if and when doubt and second-guessing arise, which can happen anytime, but usually in the last few weeks of the deal when everyone is suffering from “deal fatigue” and the siren songs of too many un-official “advisors” who sometimes just stir-the-pot, with no underlying substance. Cogent’s role is to provide a steady hand, balancing the opinions of the myriad advisors and legal counsel for both sides, based on our wealth of experience, having facilitated over 170 TSP company transactions since our inception in 2010. Our firm’s trust-based approach consistently wins the hearts and minds of both buyers and sellers, regardless of the degree of therapy required.

The Essence of Transaction Therapy™

In the world of Technology Service Provider M&A, Cogent Growth Partners is not simply an intermediary; we are the architects of transactions that stand the test of time. Our commitment to fostering deep relationships, focusing on much more than just numbers, has earned us loyalty and the highest compliments – seller and buyer references! If you are eager to learn more, contact us to embark on your own transformational journey.

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