Focus Sector: Software & Technology IT Services Industry Report

Executive Summary 

Public IT Consulting firms’ median valuation multiples are currently trading at 13.4x, up 45.7% from the most recent cycle trough of 9.2x in October
2014.  According to Gartner, many enterprises lack necessary internal talent to continue driving adoption of leading technologies at a time when IT is growing in importance – indicating that the IT consulting services industry will grow by 4.7% in 2019 and 4.8% in 2020.

Global IT Services Revenues are expected to grow by 4.7% year over year to $1.03 trillion in 2019.  According to IDC, project-oriented revenue grew by 5.2% in the first half of 2018, led by third parties in the business consulting and application development space

Key Trends

  • Evolving Technologies Will Lead to Sustained IT Services Industry Growth
  • Many Enterprises Are Struggling To Develop Custom Applications At The Rate Needed To Run Their Business
  • The Velocity of Technical Advancement Requires Enterprises To Engage Outside Expertise To Remain Competitive
  • Demand for Consultants Specializing in Specific Areas is Increasing
  •  Shortage of IT Professionals Driving Investment In High Tech At a Premium
  • High Attrition Rates of Junior Staff Continues to Remain a Challenge 

What Are Your Goals?

Determine the best option to help you realize your goals

Choose the Option that fits your goal

Need Liquidity

  • Partial / Full Monetization - Take “Chips Off the Table”
  • Exit / Succession Planning - Staged Exit
  • Take Care of Next Gen / Mgmt Team - Planned Transition
Need Capital

  • Eliminate Personal Guarantees
  • Growth - Organic / Acquisitions
  • Buyout of Other Shareholders

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