There is a very wide variety of businesses that might fall under the heading of software companies. Generally, this title is reserved for companies whose primary focus is the development of computer programs for their own use or for use by others. There are several main categories:
- Custom software developers who design, code, test, and install software for clients.
- Software package developers who create, package, and sell software for use by many customers. This category includes developers of accounting software, computer games, apps for smartphones and tablets, computer utilities, etc.
- Computer system design services who design computer-based systems for specific purposes, and which may include computer hardware, specialized equipment, software packages, custom software, and online access to databases and support services.
- Online services which provide customers access to specialized databases and software. Specialized websites and Software as a Service (SaaS) companies fall into this category.
BEAR has valued several hundred software companies since we began in 1986, and we’ve seen the evolution of software and hardware systems from the early Apples and PCs up to the present day. One of our founders was actively involved in developing software as a programmer and systems designer for 25 years, for such clients as the Federal Reserve Bank, Harvard University, and the CIA. He developed commercial credit analysis software that was used in over 10,000 banking locations, and which was ultimately acquired by Moody’s Data Services. He remains active in developing and maintaining BEAR’s valuation software, and handles most of our software valuation clients.
BEAR is a business valuation firm working through a nationwide network of valuation experts, CPAs, business brokers, and consultants. Among our staff we have the major valuation credentials, including ASA, CPA/ABV, CVA, CFA, and MVS.