ERP Software Encompix Leader Chuck Stewart Explains the Acquisition by Made2Manage

On Monday, March 13, 2006, Indianapolis-based Made2ManageSystems, Inc. completed its acquisition of Encompix, Inc. The acquisition wasMade2Manage SystemsÂ' fifth during the past 20 months. When one software companyacquires or merges with another, there are primarily three assets involved, theproduct(s), the customer base, and the employees. In the past many of theseacquisitions involved product consolidation, massive layoffs, and customers leftwith an obsolete product with little hope of any major investment. So why is theacquisition of Encompix by Made2Manage different? Chuck Stewart, one of originalco-founders, answered in a recent interview.

 We decided to look at the market opportunity for a merger or acquisition with alarger company. We were thrilled that 12 companies expressed an interest inEncompix. We picked three companies with which we had significant discussions, andeventually we chose Made2Manage Systems. Avoiding an unhealthy debt structure wasthe first business reason behind the decision. The second reason was from a newsystems sales perspective. We always thought that Encompix should be part of alarger software company, mainly because of the types of clients we attract. Itseemed that every year we got involved with one or two large sales opportunities. Wedid very well at the plant level and often ended up vendor of choice after theevaluation. The stumbling block was when our proposal went up the corporate ladderand reached a CIO or CFO. They would look at the size of Encompix and find itdifficult to justify the investment based on the potential risk. WeÂ've alwaysbelieved that being part of a larger company would give us the financial strength toovercome these objections and win larger value sales. From a business perspective,the revenue from one or two larger sales each year makes a considerable differencein how we were able to run the company, especially our ability to reinvest in theproduct, offer new technology, and add people. We wanted to be part of a verystable financial environment for our customers as well. Our customers are veryimportant to us, and we wanted to ensure that we could support them, as well as moveforward with investments in new technology that will enable them to use Encompix forlife.Â

Encompix (www.encompix.com) a business unit of Made2Manage Systems, has filled themanufacturing software requirements of engineer-to-order companies since 1992. Thecompany name reflects a commitment to developing business application solutions thatencompass the complex areas of project-based and job-based manufacturing. Encompixprovides ETO manufacturers with a competitive advantage by improving bottom lineresults.

Source: Express-Press-Release.com

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