Solutions Review - Private Tech Companies: Buyer Scrutiny, Challenges, and Hidden Opportunities

By Matt Kunkel , Co-Founder and CEO at LogicGate

The global economy has changed dramatically over the past two or three years, and the recent downward trend has left tech companies feeling the strain. Widespread layoffs have been making headlines weekly, and the IPO scene has frozen over, with more organizations either delaying going public for the foreseeable future or opting to revert to private ownership.

Naturally, this uncertainty and instability has given some buyers of enterprise IT software pause when considering doing business with smaller, privately held firms. They want to be entirely certain that the cloud service provider they’ve selected to support a critical part of their business will not simply evaporate if the economic forecast worsens.

This has caused many buyers to give public companies the edge during vendor evaluation, simply because doing so feels safer. And it’s true: small, private companies should face more scrutiny than those with proven track records. But avoiding private vendors altogether is just as big of a risk, and — frankly — a mistake.

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