Documens Boss

Without any doubt 2009 has been a difficult year.  The credit crunch reached a crescendo,  becoming a recession, which lead to soaring unemployment, whilst media hype went into a frenzied whirlwind of unfettered hyperbole.
I have three overriding impressions from this year and they may or may not be linked. Firstly, let me start with one of this year’s biggest topics of discussion - “The Banks”.
Well they really did mess up, didn’t they!  The increased focus on the banks has also highlighted what has subsequently been seen as a very unjust system of reward for bankers.  Are they currently the most hated group of people?
 
Bankers!
I regularly hear tales of horror about how the banks have treated business people, their clients whom they are meant to serve; withdrawing credit lines after years, without any hesitation.  Middle management within banks, passing judgement on their clients’ businesses which they hardly understand, let alone have the qualifications, much less the competency, to run.  Commercial organisations are always under pressure to provide greater value to their customers or die.  What about the banks? How have they provided greater value to the business industry?  When there is such a high level of dissatisfaction it is usually time for a change.  I heard a few weeks ago, that there is a new bank which opens early and closes late.  Only for personal banking at the moment but wouldn’t it be interesting if a new breed of business bank opened with a fresh approach of really adding value and providing a new level of service.
 
Star Gazers – All hype?
My second, overriding impression, was hearing at the beginning of the year from the crystal ball gazers, the predictions about the likely valuations for M&A.  It was predicted that the bottom-feeders would be able to pick up companies at really low multiples.  I had many such discussions with executives from this industry about the bargains that would be snapped up as the economic market took a nose dive.  Ok, so let’s have a look at what really happened. Well, there were fewer deals. We can definitely see that the ECM, BPM & BPO sectors did not see the same number of acquisitions in previous years.  There were some companies that spluttered to a halt and a few that were probably sold because they were about to go under.  Did the massive devaluation that was discussed result in a high number of low valuation acquisitions? NO!
What happened was that many companies who would have been looking to divest last year, postponed their decision.  Here are some acquisitions from 2009 that stick in my mind.  Not necessarily because of their value or size but due to the discussions they sparked with many of our clients:
 
• 07-Sep-09 Kofax acquired 170 Systems $32.9 million
• 1st-july-09 Hyland Software acquired Valco Data Systems ND $5.2m
• 29-Jun-09 SDL acquired XyEnterprise,  US$ 14.7m
• 06-May-09 Open Text acquired Vignette $310 million
• 20-Apr-09 Oracle Sun acquired Microsystems $7.4 billion
• 22-Jan-09 Autonomy acquired Interwoven $775M
 
I must not forget the recently announced intention by IBM of Lombardi.  I would be interested in your thoughts regarding this acquisition on my previous blog post.
The last two months of 2009 has been the busiest that Document Boss has ever seen in over ten years of operating in this sector.  I think that many companies have been holding back, sitting on their hands, waiting to see what would happen. However, now I can see a number of interesting moves that will probably take place in 2010: Data Capture, BPO - and P2P, which overlaps the other two areas - will be a focus of great interest –
and Document Boss aims to be very close to the front line. 
 
A winning combination - Clear vision and a positive approach
Finally, there is one very positive observation to come from the tough times of 2009, which is the power of clear goals and a positive attitude.  As I have regular visits from and meetings with the business leaders within our industry, I cannot help but be struck by the influence a leader with clear goals and a positive attitude can have throughout their business.  It is like a super fuel that drives the business forward.  Througout 2009, I have met many companies that have grown their revenue and profitability.  That is worth repeating - They GREW their REVENUE and GREW their PROFITABILITY.  I have also met many who suffered and the one common denominator was the attitude with which they approached the more difficult times.  Realism is required in planning but a ‘Never say die’ approach and a refusal to take part in the recession are also key. 
When I look back to the beginning of 2009 from the end of 2009, it is evident that ‘Never say die’ has been converted into solid results as we enter 2010.