Wednesday, May 28, 2008

Why M&A in SW industry?

Source: http://www.etnews.co.kr/news/detail.html?id=200805200023
제목: 규모의 경제를 키우자/1.영세한 국내 SW 산업구조
(Title: Economies of scale in SW industry / 1. Small domestic SW industry environment)

This article tells intersting research information that "As the size of the SW companies increases, the operational income rate increases." - Accenture

Average OI rate : 24%
OI rate of companies with revenue between $1B to $2B : 12%
OI rate of companies with revenue between $0.5B to $1B : 16%
OI rate of companies with revenue between $0.1B to $0.5B : 9%
OI rate of companies with revenue between $10M to $0.1B : -14%

1 comment:

oilbankers said...

This article is very intresting to me. IS that SW industry belong to maturity product lifecycle? I wish further information or cases concern M&A. ^^