Small software companies find a home with ESW Capital

Founders of small tech 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.

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 coronavirus 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.