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June 15, 2012

Inaugural MW IT Index® (China Edition) 
China IT Services and BPO Outlook Strong 


The inaugural MW IT Index® (China Edition), which 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 India and the United States, has been released by martinwolf M&A Advisors.


Based on proprietary analysis, the MW IT Index remains the only index of its kind in the IT Services industry. The China Edition joins the U.S. Edition, which is used by martinwolf, IT sector businesses and international media to analyze the state of the industry. Both the U.S. and China Editions start on December 31, 2007 with a value of 1000.


Key Findings


Transitioning to growth phase  

The Chinese IT Services industry is still in its early phase, but is transitioning to a growth phase. Because the industry is still being established, enterprise values are growing - recent research measured its growth at 25 percent, compared with growth in the mid-teens in India.


China US Flag

Most volatile of the three major markets 

China is the most volatile of the three major markets. Domestic financial scandals and slowing GDP growth have resulted in lower valuations for the Chinese market, and when compared with the United States and India, China is consequently the most volatile - a trend we expect to continue during the next year.


Valuations higher than U.S., Lower than India 

Chinese valuations remain above those of the United States, but do not reach those of India. We see the strongest competition for Chinese companies in this space coming from India, but the United States remains an attractive market in which to find valuable companies at a good price. This is exemplified by a growing trend of Chinese companies purchasing U.S. assets (and vice versa).


Cross-border M&A is path to higher value

Cross-border M&A is the path to maximum value - but not without challenge. As we have seen in India, cross-border M&A is an effective strategy for companies looking to maximize their value. Consequently, we see a consolidation wave that continues. We believe this trend will repeat itself in the emerging Chinese market -- but companies must be aware of the challenges inherent in these types of transactions.


To view the entire report, please click here.  


For more information about our firm, contact Matthew Putzulu at, or see


About martinwolf    


     San Ramon Office          
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit


December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf | M&A Advisors. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   


September 30, 2011

SPS, a leading Unified Communications Provider, announced that Court Square Partners has made an investment in the company. martinwolf advised SPS in this transaction. SPS is a premier unified communication services integrator, ranked 131 on the 2011 VAR 500 list with 2010 sales of $143 million. Court Square is a $4B+ New York-based PE Group, with more than 150 lifetime investments.  

Please click here to view the announcement. 


September 20, 2011  

Accel-KKR, a technology-focused private equity investment firm, announced that it had taken a majority stake in Infinisource. Infinisource is a leading benefits administration technology and services company. martinwolf advised the seller in this transaction.  

Please click here to



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