What Happens When Thoma Bravo Buys Your Company and What Comes Next

Thoma Bravo's acquisition process typically starts with a letter of intent, which outlines the terms of the deal. This letter is usually non-binding and serves as a starting point for negotiations.

The company's management team will likely be involved in the due diligence process, which involves reviewing the company's financials, operations, and other key aspects. This process can take several months to complete.

Thoma Bravo's portfolio companies have a high success rate, with over 75% of them experiencing significant growth after the acquisition. This is likely due to the firm's hands-off approach and focus on empowering management teams.

The acquisition process can be complex, involving multiple stakeholders and negotiations.

After a company is acquired by Thoma Bravo, the transition can be a mixed bag. Some people have found it energizing, with deep investments in the right parts of the business and trimming of unnecessary expenses.

Layoffs are a common occurrence, with one person mentioning a 15-20% reduction in force (RIF) a few months after the deal closes. This can happen as early as the quarter after the deal is closed.

The roles and functions that are eliminated can vary, but it seems that some companies are targeting almost every org.

You might be wondering if you'll receive a signing bonus, but one person warns that it's not worth the hassle of dealing with the private equity firm's "spreadsheet jockeys."

Retention bonuses are a possibility, with one person mentioning a 20% retention bonus to stay one year. However, it's not a guarantee, and not everyone may be offered this incentive.

It's also worth noting that some employees have received phantom equity grants or the opportunity to buy equity on the same terms as Thoma Bravo, but these perks are not universal.

Private equity firm buyouts can lead to significant changes, including leadership shifts and sell-offs.

Thoma Bravo is a private equity firm known for its intense focus on the software space and cybersecurity.

The firm recently purchased SailPoint for $6.9 billion and ProofPoint for $12.3 billion.

Changes may occur after a buyout, especially if the company has poor stock or performance.

CEO and executive replacements, layoffs, or selling the company again are possible outcomes.

Thoma Bravo is a hands-on firm, with its leader, Orlando Bravo, directly involved in managing acquired companies.

This can be a reassuring sign for employees, as they may receive guidance and support during the transition period.

The firm's focus on the software space and cybersecurity suggests that it may be looking to build a strong portfolio in these areas.

Thoma Bravo has allegedly considered buying Twitter and is eyeing larger deals, including acquisitions of entire divisions from tech giants.

Thoma Bravo has acquired over 350 companies since its founding in 1993. They have a strong track record of investing in software and technology companies.

Thoma Bravo's average hold time for a company is around 5-7 years, which is relatively short compared to other private equity firms. This allows them to quickly identify and address areas for improvement.

One notable example is their acquisition of PowerSchool, a leading education technology company, which they purchased in 2015.