Founders of small technology businesses can sometimes hit a wall generating enough profits to expand their companies. Some have found a solution by selling their companies to ESW Capital LLC, an investment firm that is stocking a Netflix-like subscription service with business-to-business software, the Wall Street Journal reported. ESW, short for enterprise software, is controlled by Texas billionaire Joseph Liemandt. Over the past couple of decades, the firm has bought more than 100 companies in deal sizes ranging from less than a million dollars to at least $460 million. ESW aims for at least 30 more acquisitions next year as the big companies that are its target customers rely ever more heavily on technology to get through the pandemic. Austin, Texas-based ESW has the infrastructure—managers, lawyers, recruiters, developers and sales professionals—that small companies struggle to afford. It also has the cash to allow early investors and founders to move to the next creative challenge. Besides the field of companies backed by venture capitalists looking to cash out, ESW’s hunting grounds include smaller, ailing software businesses destined for bankruptcy court. Since 2015, ESW has sealed deals for about 10 bankrupt companies, including at least three in 2020.
