How Do I Sell My Technology Company?
You have probably noticed all of the incredibly lucrative tech deals that have taken place in recent years. The technology business is booming, and large technology mergers and acquisitions are taking place all the time. Once you have built up your technology business to the point where it has significant value and you’re ready to sell, you may be wondering what the next step is for selling your tech company.
Below, we cover the steps to follow to maximize your chances of getting the best value when selling a technology company.
Working With Experienced Technology Business Brokers
If you have a technology business and you’re ready to sell it now for maximum value, work with the experts at brokering tech mergers and acquisitions. At Synergy Business Brokers, we have years of experience selling businesses with annual revenues between $700,000 and $70 million. We are the go-to broker to buy and sell a tech company.
Below are some of the technology companies that we have sold:
- Software companies
- Value Added Resellers (VARs)
- CRM software
- Artificial intelligence professional services
- ERP software
- Point of sale technology companies
- Marketing software companies
- Security technology companies
- Internet companies
- Hardware manufacturers
- Workflow software companies
- Wireless tech companies
- Cloud computing companies
- Digital marketing agencies
- Healthcare tech
- Supply chain tech companies
- EHR software companies
- SaaS companies
- E-commerce companies
- Managed service providers
- Patented technology
- Website development
- Educational software companies
- Telecom companies
Steps to Sell Your Technology Business
The more you prepare for the sale of your business, the smoother the transition is likely to be. Here's how to sell a tech company:
1. Get an Overview of Your Company
The first step is a confidential consultation. We will discuss any strengths and weaknesses of your company and get an idea of how to position it, who the potential buyers are and what type of recurring revenue you have, if any.
2. Review Your Financial Information
Before you put your tech company on the market, we want to make sure the financial information is clear. We will look at your company from a buyer’s perspective to present the data correctly. Financial records to prepare before you sell your tech business include:
- Profit and loss statements
- List of intangible assets
- Cash flow statements
- Balance sheets
- Inventory list
- Tax returns
Having your financial information and relevant documents prepared can make it easier to transfer your tech company to the next owner. A technology business broker with Synergy Business Brokers will help you position your financial information and your company as a whole.
3. Figure out How Much Your Company Is Worth
You may have a rough idea of how much your tech company may be worth, but you don’t want to leave anything to chance with a transaction this important. The price for your tech business shouldn't be too low or too high. You can use different methods to value your business and consider various factors, such as your company's:
- Assets minus your liabilities
- Income or projected revenue
- Income-earning potential
- Customer base and market reach
You may also want to take the market-based approach by reviewing the sale price of similarly sized businesses to determine your company's potential value. Synergy Business Brokers can provide you with a realistic estimate of what you can expect to get for it. This will put you in a much stronger position to negotiate.
4. Sell While Your Tech Company Is Successful
There are a number of reasons why you may be ready to sell your tech business. Maybe you're ready to retire or invest in a new venture. Ideally, you want to sell when sales are increasing rather than when they’re down. You are more likely to sell your business for a better price while it is still thriving. If your business is growing financially, now may be the ideal time to sell.
You should be able to present evidence of your company's profitability and growth. This can give potential buyers a sense of your company's possible future profitability. You'll also stand out among other tech businesses that are for sale, which could lead to a faster transition and a better price. Even if a sales dip is a function of forces unrelated to the value of your company, we'll discuss your options.
5. Contact a Qualified Technology Business Broker
Finding a quality business broker is the key to learning how to sell your technology business fast. You want a business broker with specific experience in the technology field who understands the market, knows how to price a technology business, and can get you the best possible deal. A business broker can use their network to locate buyers, and often, you can make up their commission many times over in the increased amount you can sell your business for.
Where Should You Sell Your Tech Company?
Technology companies are unique and can interest many buyers. At Synergy Business Brokers, we can sell your tech company, regardless of whether it is located in the Northeast, Midwest, South, or West and almost any location in the U.S. We can help you sell your technology company locally, nationally, or internationally. No matter where potential buyers are located, we will seek out interested, qualified buyers for the sale of your tech business.
Mergers and Acquisitions in the Tech Industry
As a business owner who wants to sell a tech company, other options available to you are mergers and acquisitions (M&A). Merging with competitors or acquiring businesses allows tech companies to grow more quickly. Mergers and acquisitions can enable a company to move into a new market or offer new services. When it's time to sell your tech business, finding a company that is looking to increase its profitability or expand its footprint can be an excellent option.
At Synergy Business Brokers, we can search through our database of potential buyers who are interested in buying tech businesses and help you find the right one.
Contact the Tech Business Brokers
Many of our Senior Advisors come from the technology industry. Their backgrounds include executives who have built and sold technology companies for millions, a VP of Information Technology at a Fortune 500 company, and M&A executives who have done deals with Cisco and many other large technology companies.
We have relationships with private equity firms and public IT companies. We can guide you through the sale process. Having worked with many tech businesses for sale, we understand the importance of finding someone who appreciates your employees, customers, and intellectual property. This will lead to a smoother due diligence and exit process. We are one of the top-rated technology Business Brokerages in the U.S. Tech business owners know us and are a source of referrals to other tech entrepreneurs.
We know the tech industry, and we are confident we can find the right buyer for your technology business. For a confidential consultation on your potential tech sale, give us a call at 888-750-5950, drop us a note at firstname.lastname@example.org or fill out and submit our simple online form. There’s no need to wait — get in touch with us today! If you would like to buy a technology business, please view our current tech companies for sale.