Who we are

Lean team - big impact
We focus on the key elements that enable successful win-win deals.

Having spent a decade in in-house M&A for a software start-up that grew to become the top 3 enterprise software company in the world and as an operating executive in acquisitive software companies, I was amazed about the bad reputation the M&A world has.

If you research M&A success factors, you’ll find articles claiming that anywhere from 50% to 90% of M&A deals “fail” or are “unsuccessful”, and these percentages don’t even include the deals that have been initiated but failed to close. I always wondered where these statistics come from.

Why in the world would you as an entrepreneur, executive or investor pursue a growth strategy when the expected outcome is like flipping a coin at best?

My own experience has been very different. In a small M&A team of two, within 5 years we looked at hundreds of software companies and eventually acquired and integrated more than 30 with not a single failed M&A transaction. No acquisition was ever regretted and every deal was pretty much in line with the synergies initially planned to justify the price paid.

To get the best result you need the best team

The secret sauce? Besides a few key principles and a lot of hard work I don’t think there is any. Just like any other business process, M&A deals are not inherently good or bad, just as marketing and product development aren’t. In my view, likely the single most controllable success factor, no matter if you are selling or acquiring a software company, is the capability of your deal team. If experienced and skilled it can be a catalyst for a win-win deal or – in the worst case – be a deal killer.

Most small and medium sized software companies don’t have adequate M&A capabilities inhouse and rely on external help when preparing for M&A. Pragmatic is purpose-built for exactly that situation and the value we bring to the team is a ruthless focus on the key elements that enable successful win-win deals.

We have the depth to create real value for our clients and align ourselves with their best interest

As a M&A services company we’re not really among the big guys, meaning we’re small enough to do things differently. This makes us flexible in the way we work with our clients compared to larger consulting companies. We see no value in having hundreds of partners around the globe when your project is relegated to the recently-joined juniors and we believe that excessive fee structures reflect the inefficiencies and expensive business model of large institutionalized investment banks rather than the value added.

Pragmatic is structured to be a responsive, knowledgeable and hands-on business partner to our clients. We operate on a thin, efficient but highly scalable model, no different from the clients we represent. We represent select opportunities we are confident we can close. If we can’t add value we won’t take the engagement. Our fees are performance-based and results-oriented, which means that our interests are aligned with yours.

To make sure we are constantly developing and getting better at what we do, we believe in surrounding ourselves with friends, organizations and partners who are the best in their respective fields. This not only benefits our clients but also forces us to challenge ourselves, push our mindset, and make sure that we stay innovative.

 

“Welcome at Pragmatic! Please get in touch no matter where you are on your M&A journey, we are looking forward to working with you!” – Klaus Enke