The Software Industry is responsible for creating more wealth than any other sector of the technology industry. We are speaking now not only of the industry giants - Microsoft, Oracle, SAP and IBM - but also of the thousands of other companies which entrepreneurs have created to solve the needs of business, government and individuals. Westbury's principals have long experience in helping software companies seize opportunities for maximizing value through creative financial transactions.

The software sector has witnessed the ups and downs of the technology sector and has experienced its own share of good and bad. The introduction of the personal computer, the advent of the client-server model and the rise of the Internet, have all created both opportunities and challenges for the industry. Today, the industry is facing two important trends - a new round of consolidation and the rise of "Software as a Service (SaaS)" firms.

Financing The SaaS trend continues to gain momentum. The subject of myriad reports, whitepapers conferences and press columns, SaaS will be a fixture of the software landscape for decades. The demand for traditional licensed software will remain and we will even see hybrid SaaS/license offerings. For companies looking to make the move to SaaS, a central question is how to finance that transition. Signing up a customer for SaaS rather than licensed software may mean more revenue in the long run, but in the short run, revenues decline. Instead of getting a large upfront payment with small maintenance fees afterward, the revenue stream is relatively constant. Equity or even debt financing provided by investors who understand the sector and the economics of SaaS is an attractive mechanism to cross the "revenue chasm" of the SaaS transition.

SaaS, of course, is not the only factor creating a need for financing. Expansion through acquisition and through organic growth also drive the need for external capital. Depending on the need and the nature of the company, venture capital, private equity or mezzanine financing may be appropriate. Westbury also works with investors providing various forms of debt financing, including venture debt.

Mergers and acquisitions The trend toward consolidation is driven by both economies of scale and customers' insistence on doing business with firms that have the resources to support them in the long term. This trend provides an opportunity for smaller firms with a strong customer base to combine with a larger firm at a very favorable valuation. Through its rigorous and flexible auction process, Westbury helps sellers obtain the highest possible valuation. The environment poses a challenge for firms seeking acquisitions: many competitors are pursuing the same objective. Westbury works with buyers to identify targets that meet the client's strategic criteria which are also "off the radar screen" and more likely to deliver a strong return on investment.