ATLANTA – March 30, 2021 – Cogent Growth Partners (CGP), a buy-side intermediary for IT Services mergers and acquisitions, today announced robust year-end results for 2020 despite the COVID-19 pandemic, which slowed many businesses around the world. Notably, 50% of the transactions closed in 2020 came from Cogent’s existing client base of serial buyers. Already this year, Cogent has closed more than half of the total number of transactions completed in 2020, which indicates that the firm’s 2021 results are on track to outperform 2020.
“The pandemic proved our long-held belief that outsourced IT services are essential to most businesses,” explained Rick Murphy, Cogent Growth Partners CEO and Managing Partner. “Last year, we chose to bypass the pandemic’s ‘Great Pause’ and continue to aggressively pursue transactions designed to expand our clients’ market share and extend their geographical reach.”
As a leader in the buy-side intermediary space, Cogent’s performance serves as a bellwether for successful business combinations in the IT Services industry. During the pandemic, many owners of IT businesses took time to consider what’s next, prompting them to pursue growth-oriented business transactions.
Cogent’s portfolio of 2020’s closed deals revealed three significant trends:
- (1) The average transaction value was higher than in previous years.
- (2) Half of the transactions opened new geographic markets.
- (3) There was strong activity from both private equity firms and stand-alone companies, each of which accounted for 50% of the transactions.
“There is simply too much market opportunity out there for most IT companies to leverage on their own,” said Murphy. “We have a strong pipeline of repeat buyers who expect us to identify candidate companies, and there is a good deal of capital available to fund these transactions. For all of those reasons, we expect 2021 to continue to be a seller’s market.”
About Cogent Growth Partners
Cogent Growth Partners, LLC, a buy-side intermediary for mergers and acquisitions, taps into the growth opportunities found in America’s IT businesses. Cogent accelerates the M&A process with a set of proprietary tools and processes that enable buyers and sellers to stay focused on running their respective businesses. Anyone who wants to know why Cogent is different, need look no further than the back of our business card: “Providing Transaction Therapy™ for IT Business Owners Since 2010.” For more information, email [email protected], visit www.cogentmergers.com or call (678)820-5288.