SAN RAMON, Calif.--(BUSINESS WIRE)--martinwolf | M&A Advisors today released the first China Edition of its proprietary MW IT Index®. The China Edition of the Index was introduced by Founder and President Marty Wolf in a presentation at the 2012 China International Software & Information Service Fair in Dalian, China. The Index continually tracks the enterprise value of 28 companies in IT Services and Business Process Outsourcing (BPO) in China, Hong Kong and Taiwan and compares them to valuations of similar companies in the United States and India.
According to Wolf, “The IT Services and BPO industry in China is in a relatively early phase. Enterprise valuations are growing, and the outlook for the overall industry in China is strong for the next three to five years based on a increasing domestic demand, continued international competition and a large and growing global market that cannot be satisfied by U.S. and Indian companies alone.”
Other key findings include:
- Of the three major markets for IT Services – the United States, India and China – China is the most volatile. In-country financial scandals and slowing GDP growth have combined to depress valuations. While we are not expecting a hard landing for the Chinese economy, we do expect volatility to continue for the next year or so.
- Valuations of IT Services companies in China are higher than in the United States, but lower than in India. India is where the most competition will come from for Chinese companies in this space for the foreseeable future, and the United States is a good market for Chinese buyers of IT Services companies.
- Cross-border M&A is the path to maximum value for Chinese IT Services companies, if done properly.
With its history of successful transactions and tradition of expert analysis, martinwolf is uniquely positioned to offer commentary on the global IT marketplace. For a copy of the MW IT Index (China Edition) report, visit http://www.martinwolf.com/mw-index.
About the MW IT Index
The MW IT Index® is an analysis using securities that are weighted according to the market value of their outstanding shares. The Index (U.S. Edition) includes 116 IT companies traded in the U.S. stock markets (NYSE, NASDAQ, and OTC) that are a composite representative sampling of enterprise values in the following categories:
1. IT Services & Business Process Outsourcing (BPO) - 52 companies, including seven in BPO
2. IT Supply Chain Services - 23 companies
3. Software 41 companies, including 16 in SaaS
The Index (China Edition) includes 28 Chinese IT Services and Business Process Outsourcing (BPO) companies traded in the U.S. (NYSE, NASDAQ, and OTC), London (LSE AIM), Chinese (SZSE, SHSE, SEHK) or Taiwanese (TSEC) stock markets that are a composite representative sampling of enterprise values.
The MW IT Index starts on December 31, 2007 with a value of 1000.
With offices in San Francisco and Bangalore, India, martinwolf is the world’s leading middle market IT M&A advisory. Since 1997, the firm has completed more than 100 transactions in six countries. Its knowledge and experience with IT outsourcing and managed services combined with its disciplined approach, which includes a proprietary, proven, step-by-step work plan customized for each client, has produced one of the highest transaction completion rates in the industry.
martinwolf is a member of the Merrill Lynch PS Referral Network and is an exclusive strategic partner to ICICI Bank, India’s leading private bank, for acquiring U.S. IT companies. Member FINRA, SIPC.
For more information, visit http://www.martinwolf.com.