Expertise

Our focus markets are undergoing slow organic revenue growth, reduced profits and strategic transformation. The companies we target are reluctant to embrace this new reality and must significantly change their business strategy to enhance shareholder value. We create investment opportunities by applying our proven Argean Value Optimization Model which has enabled us to create billions of dollars in shareholder value for both public and private companies. Our extensive network of technology CEOs, CTOs, private equity partners, venture investors and investment bankers provides a broad and trusted ecosystem necessary for success.

Focus Markets

Semiconductors

The $350B semiconductor industry is undergoing slow revenue growth, reduced profits, and significant strategic transformation. Fundamentally, there are key fundamental shifts in the semiconductor market, including:

  • Moore’s law is slowing down beyond 14nm nodes, and companies face higher R&D costs
  • Slower growth rates are expected in communications, Computer and Consumer markets, which represent 66% of semiconductor device consumption
  • System companies are growing capabilities in chip architecture, design and production
  • North American and European based semi companies are being challenged by Asian companies, which are thriving with the availability of foundries and IP/development tools.

Private Equity Opportunities

  • Companies must consider divesting/shutting down poor performing businesses, “right size” through business transformation, and align roadmap to high value Vertical Markets that maximize shareholder value.
  • Significant value can be derived from monetizing key assets: patents, IP licensing, non-core businesses, and real estate.
  • Companies must return to core fundamentals and better financial health by eliminating non-core functions and reducing SG&A, R&D and COGS.

Enterprise and Service Provider Infrastructure Equipment

Networking, compute, storage and telecom equipment companies are experiencing fundamental business and technical strategy shifts, including:

  • Network architectures are evolving to support video and cloud-based delivery, where workloads are moving to the cloud (e.g., email, collaboration)
  • SDN-NFV and unified communications are driving capex reduction through open standards and standard products
  • Western companies face competition from Asia (Huawei, ZTE, Samsung) and stalled growth in revenues, with CAGR under 3%

Private Equity Opportunities

The Business models need to shift from hardware centric to software-centric products, services and support, which will require:

  • Companies to modify the offering structure, pricing/licensing models and go-to-market plans
  • Improving SG&A and R&D expenses by reducing non-core operations
  • Monetizing large patent portfolios and license IP

Software

The $250B Software industry is transforming in the customer buying behavior and business model, which includes key transformation imperatives including:

  • CRM, ERP and other software applications are shifting from perpetual license to subscription/SaaS and on premises deployment model moving to cloud, i.e., higher growth rates, predictable revenue and higher value for SaaS companies.
  • Customer business models are shifting from capex (license, on-premises) to opex (subscription, cloud)
  • Traditional companies face a step function decline in revenue, profit and enterprise value for 3-5 years if they migrate to Software
  • SaaS-only companies are competing with license-only and hybrid companies and are spending aggressively on sales and marketing (majority are unprofitable)

Private Equity Opportunities

The market is transitioning from license (one-time license fee and ~20% annual support/maintenance) model to subscription model changes the revenue-profit for license-only/hybrid companies. Key opportunities include:

  • Driving revenue growth through new offering model and sales/marketing structure
  • Repackaging offerings/solutions for new market segments to drive higher revenues
  • Aligning lead-to-cash processes and streamline organization to drive higher profits