This Is How to Sell Your Technology Business

Look, not every technology business is going to sell for $40 billion. That said, your company can fetch a lot more money than you ever imagined it would, if you offer a simpler way to solve a common problem through tech.

Thankfully, you don’t have to be sitting on an ARM Holdings to command top-dollar for your technology company. In the following article, we’ll be exploring how to get your business ready for an acquisition that you can be proud of.

Place a Realistic Value on the Company

The first step to take if you own a technology company is to take a serious look at what your holdings are worth. This is not a time to go pie-in-the-sky. Investors are smart people, and they will want to do some digging before deciding to make an offer.

You need to look at a few key areas when coming to a final figure. Ask the following questions:

  • How many assets are under ownership?
  • How much revenue are you generating?
  • How much debt are you carrying?
  • What is your total amount of equity?

These questions will inevitably lead to others. Scrutinize your company so you’ll be able to justify your asking price.

Ready Your Financials

Selling a tech company isn’t entirely about the financials, but they’re definitely a key part of it. Who are your existing customers and what are the terms of those contracts? 

Consult with an accountant about any financial skeletons that may be lurking in your closet. 

Use Other Interested Parties to Your Advantage

With any luck, your decision to sell a tech company will come with a list of prospective buyers. Harness your network of contacts to get the offer into the right hands. Then, leverage those parties against one another once you generate the interest.

Buyers are looking at more than just what you’ve done with the company. They’re also looking at its potential. Use that as well when attracting interest.

Study Forecasts for the Right Time to Sell

Any advice on how to sell a business would be incomplete if it didn’t touch on timing. For example, you could command a higher value by selling when you’re in the black after a major order is in, as opposed to selling a company while it’s in debt.

Take a look at your earnings forecasts. Also, examine the economy to get a feel for whether companies are in the acquisition mode.

Consider Working With Specialty Brokers

Finally, you might want to consider working with technology business brokers who have experience in valuing your company and finding the right buyers. As you do so, make sure they understand what you want from the sale, as well as where you’re willing to negotiate.

Selling a Technology Business Can Take Time

You should keep expectations realistic through the process of selling a technology business. The offers won’t necessarily come in overnight.

In the meantime, you want the company to continue performing at optimal levels. Best of luck as you make your decision.

For more articles on business growth and acquisition, check out some of our additional posts!