We are delighted to share with you our Enterprise Planning & Transformation report focusing on recent market trends, transaction activity, and insights into many of the exciting companies within the segment. The expansive, $30B+ market for Enterprise Planning & Transformation Technology is fast moving and we predict that the market will be worth roughly $70B by 2030, growing at a 14% CAGR. Demand for Enterprise Planning & Transformation Technology is driven by five primary tailwinds: (1) Technology ecosystem convergence, (2) real-time collaboration, (3) the increased emphasis on accountability and measurement, (4) the rise of AI Decision Intelligence technology, and (5) tech stack consolidation and resource optimization. These unique tailwinds are driving demand for and influencing the creation of new technologies.

Enterprise Planning is the strategic process by which an organization outlines its objectives, allocates resources, and establishes a roadmap to achieve its goals. It is a holistic approach that encompasses various facets of business operations and involves the coordination of activities across different departments and functions. The aim is to align the organization's efforts with its overall mission and optimize resource utilization. Enterprise Planning is facilitated by a suite of integrated solutions and platforms that span across diverse business subsegments. These tools are designed to enhance efficiency, collaboration, and decision-making within an organization. Amid the wave of digital transformation, technology has ascended to a pivotal role in shaping strategic initiatives, becoming a driving force in the realm of planning and execution.

Enterprise Planning Technology is utilized for both Business Transformation and IT Transformation. Business Transformation focuses on automating manual business tasks related to planning and tracking performance, and encapsulates segments such as Strategic Portfolio Management, Professional Services Automation and Work Management. IT Transformation focuses on automating IT related workflows and includes areas such as IT Asset and Service Management, Value Stream Management and Enterprise Architecture Management. AGC's Enterprise Planning & Transformation Technology landscape consists of over 300 companies the span across 12 subsegments.

M&A activity tracked around $4B from 2019-2021, but then burst open in 2022 with 102 deals and $15.7B in value. Then, 2023 was another record year, showing a healthy 126 deals in tandem with $25.9B in deal value. Highlights included the sale of LeanIX to SAP, Apptio to IBM, and Snow to Flexera. The surge in transaction activity is driven by SaaS products hitting critical mass for scale and profitability, capital availability from sponsor backed strategics and listed buyers alike, and a focus on building out broad suites of integrated tools. We believe that this is just the start of a wave of consolidation activity to come.

Strong M&A activity in 2023, concurrent with private placement deal volumes returning below pre-Covid levels, suggests industry consolidation is ongoing, as these acquirers look to build scale through inorganic growth while organic growth and financing activity has been more challenged (as has been seen across many segments of Enterprise Software).

Enterprise Planning & Transformation Technology

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