Software Due Diligence In A Post-ZIRP World: What Investors And Founders Need To Know Now

By Meg Flippin, Benzinga

Click here to learn how this consulting firm is helping software companies in the post-ZIRP world. 

Nowadays, more and more investors are prioritizing software companies that can scale, meet ever-evolving compliance requirements, and offer a resilient tech stack,” said Faisal Siddiqui, Director at CohnReznick.

Rising interest rates and tighter capital markets put an end to that, shifting investors’ minds along with it. The grow at all costs mantra was no longer the norm. They are looking for software companies that can show a clear path to profitability instead of just red-hot growth, have a sound business model, are operating in a market that has the potential to grow over the long term and a business that has the potential to scale profitably. The days of smaller software companies surviving on a never-ending cycle of capital infusions are over as more investors seek companies that demonstrate they can grow at a manageable and profitable rate without burning through cash or putting unnecessary pressure on a company’s resources. Many startups struggle to secure funding even as Big Tech gets bigger.

CohnReznick Has You Covered 

To check off all those boxes, many software companies have been turning to CohnReznick for help navigating the marketplace in the post-ZIRP era. For good reason. CohnReznick provides accounting, risk management and digital transformation services to software companies trying to optimize their business performances, manage risk and maximize their value. 

Leveraging advanced 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. The CohnReznick professionals have decades of extensive technology industry experience, serving a wide array of technology sectors including software, cloud, mobility and data analytics.  

Whether the business needs help analyzing data or protecting its network, CohnReznick can help. CohnReznick also helps software companies strengthen their businesses in advance of a deal or capital transaction, guiding them through each phase of the deal process – from strategic assessment of targets through structuring, due diligence, valuation and integration.

From helping software companies streamline operations to implementing AI, CohnReznick does it all. Click here to learn more. 

Technology At The Forefront 

Through CohnReznick digital advisory services, technology companies get help crafting their digital plans and choosing the right technologies, data and talent to grow their businesses' profitability and meet the demands of the investors of today. CohnReznick also evaluates companies’ existing technology infrastructure to identify any inefficiencies and creates a roadmap for improvements. All of it is with an eye toward becoming leaner and profitable at a quicker pace. 

On the technology side, CohnReznick has carved out a niche guiding technology companies as they implement AI across their businesses to streamline operations, boost productivity and improve market share and thus sales. When it comes to implementing AI for a company, CohnReznick looks for areas where AI adds tangible value. The technology practice at CohnReznick also practices what it preaches; at the same time that it advises its customers about AI rollouts, it is running an internal AI hack-a-thon to identify day-to-day and week-to-week areas that have challenges and then leveraging AI internally to improve efficiencies, services and delivery to its clients. 

Monetization is another area many technology firms struggle with. CohnReznick can help technology companies monetize their offerings with its data analytics and automation services. Furthermore, CohnReznick can secure networks and systems with its robust cybersecurity offerings. Take its Digital Forensics Lab as one example. It acts as the central hub for its cyber incident response solutions, enabling the company’s professionals to assess the full scope of cyber incidents, gather and secure digital evidence and establish protections against future cyber threats.

Through the use of advanced tools, the lab works to quickly uncover the nature and extent of the incident – whether it’s a data breach, malware infection, unauthorized access attempt or something else - working to catch the bad actors and restore systems to their original state.  Professionals in the Digital Forensics Lab also provide companies with security assessments to identify vulnerabilities, can monitor companies' networks for threats and prepare companies for cyberattacks through trial runs and test plans.

The technology investing landscape has changed in recent years as interest rates have increased and free-flowing capital has become more challenging. Investors are no longer clamoring for technology companies that are throwing money at the chase for growth. They want controlled growth, streamlined operations and profitability, whether the company is starting out or has been at it for years. Achieving that can be difficult in the current environment, which is where CohnReznick comes in. CohnReznick has a robust practice advising tech companies how to not only navigate the post-ZIRP era but thrive in it. To learn more about CohnReznick, click here

Featured image from Shutterstock.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

This content was originally published on Benzinga. Read further disclosures here.

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