17. March 2026

Topstory: Value Creation in Tech Deals: What drives value – and what holds it back. And why smart companies benefit twice from M&A awareness.

Many IT and software firms excel at product, but less so at structure: sales run on gut feel, numbers arrive late, and processes depend on a few people. That can work day to day, but it becomes a problem when succession, growth capital, or an acquisition is on the table. Buyers and investors don’t pay for “the best product on paper” – they pay for a business that runs predictably: stable revenues, reliable reporting, clean processes, and the ability to integrate smoothly with another company. Those who can demonstrate this achieve higher valuations and faster processes.

M&A awareness comes before exit readiness
“Before you think about sale readiness, you need to understand how value is measured,” says Pascal Kopp, Head of Business Development at atares. This M&A awareness helps you do the right things now – deal or no deal: close the books on time each month, maintain a small, clear KPI set (e.g., recurring revenue, existing customer growth, Customer Acquisition Cost, churn), secure key people, and keep critical documents organized. That improves controllability today and credibility in a process tomorrow. Prepared buyers and sellers with clear plans create value faster because integration and value levers are built in from the start.

What drives value (value drivers)

  • Recurring revenue that sticks: customers who keep buying; low churn; no outsized dependence on a few large accounts.
  • Sales as a system: a reliable pipeline, traceable win rates, clear pricing – and partners who bring repeat business (e.g., hyperscalers, ISVs, resellers).
  • Products that plug in: documented architecture, manageable technical debt, standard interfaces (APIs, Single Sign-On), and clean data – making integration faster and cheaper.
  • Team and organization: key people stay; know-how is documented; decisions follow a steady cadence (e.g., weekly/monthly reviews).
  • Finance and governance: timely month-end close; consistent KPI reporting; contracts, IP chains, policies, and core HR files at hand – this builds trust and speed.

What destroys value (value killers)

  • Founder dependency in product, customer relationships, or pricing; no succession plan.
  • “Foggy” numbers: late closes, no view of existing customer development or cash flows.
  • Technical legacy without interfaces: integration becomes costly, slow, and risky.
  • Discounting over value: weak service levels, too many discounts, poor price discipline; overexposure to a handful of customers.
  • Unplanned integration: no clear 30/60/90-day plan, unclear accountabilities, no retention packages for key people.

What to do – lean and actionable

  • First: Run an honest health check. Keep the month-end close on schedule, track a small, stable KPI set (recurring revenue, existing customer development, churn, cash receipts), and set up a basic data room (contracts, IP chain, policies, key HR docs). Result: immediate visibility now and fewer follow-up questions later.
  • Second: Systematize. Build a reliable 12–36 month plan, streamline the sales process, enforce pricing discipline, and maintain partner playbooks. On the product side: prioritize interfaces, establish a security baseline, and document core processes. That makes growth repeatable and integration predictable.
  • Third: Open up options. Tell your equity story through capabilities: Which building blocks do you bring (e.g., security expertise, AI modules, sector access)? Map likely buyers/partners and set a simple roadmap, including communication and accountability plans. This increases speed and reliability in a deal.

Bottom line
Technical excellence is mandatory. But value only materializes when it’s backed by structure, clean numbers, and integration readiness. Every euro invested in M&A readiness ahead of a transaction pays twice: it improves day-to-day performance (results, transparency, pace) and flows straight into enterprise value, widening the valuation range in any future deal. In short: smart companies win either way.