Interesting synopsis Jordan. We were evaluating both Delaget and Par Data Central when this announcement was made re: the acquisition. So while I didn’t have a front row seat for it, I did have a nice view of the solutions and why the two companies felt the acquisition made sense to them.
Re: IT Spending, at least in my 35 years of participating in these IT budgeting surveys, credit card fees are never included as IT spending, but rather business costs that typically are recorded in SG&A expenses or sometimes even just baked into COGS. Depends on the company being private vs public. This doesn’t render your assessment wrong, but I just wanted to point out that I’ve worked with over a dozen brands in my career and IT spend as a % of sales has averaged something between .5% to 1.5% outside of some really big digital/tech transformation years where you are often burdened with maintaining the old and busted while implementing the new and fancy…..”double bubble” years in other words.
Interesting synopsis Jordan. We were evaluating both Delaget and Par Data Central when this announcement was made re: the acquisition. So while I didn’t have a front row seat for it, I did have a nice view of the solutions and why the two companies felt the acquisition made sense to them.
Re: IT Spending, at least in my 35 years of participating in these IT budgeting surveys, credit card fees are never included as IT spending, but rather business costs that typically are recorded in SG&A expenses or sometimes even just baked into COGS. Depends on the company being private vs public. This doesn’t render your assessment wrong, but I just wanted to point out that I’ve worked with over a dozen brands in my career and IT spend as a % of sales has averaged something between .5% to 1.5% outside of some really big digital/tech transformation years where you are often burdened with maintaining the old and busted while implementing the new and fancy…..”double bubble” years in other words.
Great insights!