Click here to see how this consulting firm is helping software companies in the post-ZIRP world.
Times are changing, and that couldn’t be more true when it comes to the software market. Look back a few years and the software industry was booming thanks to the Zero Interest Rate Policy (ZIRP), which made borrowing capital cheap, allowing software companies to more aggressively deploy their money for growth. Rapid market share gains in an easy borrowing environment justify large outlays and high cash burn rates.
“Today, more investors are prioritizing software companies that can scale, meet ever-evolving compliance requirements and provide a resilient tech stack,” said Faisal Siddiqui, director at CohnReznick.
Rising interest rates and tighter capital markets are putting an end to this, which is also changing investors’ minds. The mantra of growing at any cost was no longer the norm. They are looking for software companies that can demonstrate a clear path to profitability rather than just white-hot growth, have a healthy business model, operate in a market that has the potential to grow in the long term, and a company that has the potential to scale profitably. The days of smaller software companies surviving in an endless cycle of capital injections are over as more and more investors look for companies that demonstrate they can grow at a manageable and profitable pace without burning cash or putting undue strain on a company’s resources. Many startups are struggling to secure funding, even as Big Tech grows bigger.
CohnReznick has you covered
To check off all these boxes, many software companies have turned to these capabilities CohnReznick for help navigating the market in the post-ZIRP era. For good reason. CohnReznick provides accounting, risk management and digital transformation services to software companies looking to optimize business performance, manage risk and maximize value.
By leveraging cutting-edge technology such as AI, machine learning, cloud computing and others, CohnReznick’s technology practice can help software companies navigate every stage of their business growth, whether they are starting out or already established. CohnReznick professionals have decades of extensive experience in the technology industry, serving a wide range of technology sectors including software, cloud, mobility and data analytics.
Whether the company needs help analyzing data or protecting its network, CohnReznick can help. CohnReznick also helps software companies strengthen their operations prior to a deal or capital transaction, guiding them through every stage of the deal process – from strategic assessment of objectives to structuring, due diligence, valuation and integration.
From helping software companies streamline their operations to implementing AI, CohnReznick does it all. Click here for more information.
Technology first
Through CohnReznick’s digital advisory services, technology companies can help build their digital plans and choose the right technologies, data and talent to increase their business profitability and meet the demands of today’s investors. CohnReznick also evaluates companies’ existing technology infrastructure to identify any inefficiencies and creates a roadmap for improvements. All this with the aim of becoming leaner and more profitable at a faster pace.
On the technology side, CohnReznick has created a niche guiding technology companies in implementing AI into their businesses to streamline operations, increase productivity and improve market share and therefore revenue. When it comes to implementing AI for a business, CohnReznick looks for areas where AI adds tangible value. The technology practice at CohnReznick also practices what it preaches; As it advises its clients on AI rollout, it hosts an internal AI hack-a-thon to identify daily and weekly areas that have challenges and then deploy AI internally to improve efficiency, services and delivery to its clients.
Monetization is another area that many tech companies struggle with. CohnReznick can help technology companies monetize their offerings with its data analytics and automation services. Additionally, CohnReznick can secure networks and systems with its robust cybersecurity offerings. Take the Digital Forensics Lab as an example. It serves as the central hub for its cyber incident response solutions, allowing the company’s professionals to assess the full scope of cyber incidents, collect and secure digital evidence, and protect against future cyber threats.
Through the use of advanced tools, the lab aims to quickly uncover the nature and extent of the incident – whether a data breach, malware infection, unauthorized access attempt or something else – to track down the bad actors and restore the systems to their original state. Professionals in the Digital Forensics Lab also provide companies with security assessments to identify vulnerabilities, can monitor corporate networks for threats, and prepare companies for cyber attacks through dry runs and test plans.
The technology investment landscape has changed in recent years as interest rates have risen and free-flowing capital has become more challenging. Investors no longer clamor for tech companies throwing money at growth. They want controlled growth, streamlined operations and profitability, whether the business is starting out or has been in business for years. Achieving that can be difficult in today’s environment, and that’s where CohnReznick comes into the picture. CohnReznick has a robust practice in advising technology companies on how to not only navigate the post-ZIRP era, but thrive in it. Click here for more information about CohnReznick.
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This post contains sponsored content. This content is for informational purposes only and is not intended as investment advice.
