{"id":15800,"date":"2019-12-30T11:26:55","date_gmt":"2019-12-30T16:26:55","guid":{"rendered":"http:\/\/vrnewhaven.com\/?page_id=15800"},"modified":"2020-04-07T13:28:06","modified_gmt":"2020-04-07T17:28:06","slug":"how-to-sell-a-technology-company","status":"publish","type":"page","link":"https:\/\/vrnewhaven.com\/industry-business-sales\/how-to-sell-a-technology-company\/","title":{"rendered":"How to Sell a Technology Company"},"content":{"rendered":"\n

Much like the manufacturing industry of a few decades ago,\nthe technology sector is now playing a key role in powering the U.S. economy.\nThe tech industry, which is worth roughly $1.8\ntrillion<\/a>, is one of the fastest-growing fields both in the U.S. and\nglobally.<\/p>\n\n\n\n

Given this growth rate, it’s no surprise that the technology\nsector is generating a significant amount of deal activity. In the first half\nof 2018, the total number of tech industry mergers and acquisitions reached $207\nbillion globally<\/a> \u2013 a number more than three times higher than that of a\ndecade earlier.<\/p>\n\n\n\n

With such favorable market conditions, it’s an attractive time\nto sell a technology firm. To complete a timely sale on favorable financial\nterms, however, it’s imperative to follow some smart practices before and after\ninitiating the process.<\/p>\n\n\n\n

With that in mind, let’s take a closer look at what you need\nto know before selling a technology business.<\/p>\n\n\n\n

Take a Rigorous Inventory of the State of Your Business<\/h2>\n\n\n\n

Before you sell a technology company, it’s essential to\nevaluate the current state of your business. What are its strengths and\nweaknesses? What are its competitive differentiators? Do you have a unique\nvalue proposition? How do you stack up against the competition? Detailing these\nelements can help you build a compelling sales case for prospective\nbuyers<\/a>.<\/p>\n\n\n\n

It’s also important to ensure that your financial documents\nare in order. This means having several years of business tax returns and other\nkey financial records available for the buyer to examine. Financial information\nshould also be clear, accurate, and comprehensive.<\/p>\n\n\n\n

Develop an Accurate Business Valuation<\/h2>\n\n\n\n

\"sellFinding the right valuation is the key to getting full value for your business while also ensuring that it sells quickly. Under-price your firm, and you’ll leave money on the table; overprice it, and you might fail to generate any interest among buyers.<\/p>\n\n\n\n

This is often easier said than done for many technology\nbusiness owners. While they might know how to make a great software or hardware\nproduct, they typically have much less expertise in appraising the value of\nbusinesses.<\/p>\n\n\n\n

Fortunately, there’s a solution to this common problem \u2013\nhiring a qualified business broker. The right broker will know how to value a business by considering\nthe full range of assets, including equipment and intellectual property; the\nfinancial performance of the business; and the desirability of the markets in\nwhich it operates, and balance this against the state of the M&A market for\nsimilar technology firms. <\/p>\n\n\n\n

Sell When Your Technology Firm is in Peak Operational\nCondition<\/h2>\n\n\n\n

If you want to sell a technology business, it\u2019s best to do\nso during times of high profits and growth. Buyers want to mitigate risk as\nmuch as possible; therefore, they want to know that they\u2019re buying into a promising\nenterprise. Slowing sales or plunging profits only heightens the risk and makes\nyour asset seem less attractive.<\/p>\n\n\n\n

This means that it is often a\nsmart idea to take steps to maximize customer acquisition and sales in the run-up\nto an exit. By devoting extra resources to marketing and advertising before putting your company on\nthe market<\/a>, you can increase sales and have a much more attractive asset.<\/p>\n\n\n\n

Source Prospective Buyers and Negotiate<\/h2>\n\n\n\n

\"sellMarketing your technology business effectively and cultivating a group of interested buyers is critical to selling your company quickly and maximizing its value. However, few owners have the network of contacts or the marketing knowledge necessary to do this effectively. By going it alone, they run the risk of allowing their business to languish on the market for months or even years.<\/p>\n\n\n\n

Unfortunately, few owners can market a business effectively\nor know how to find potential business buyers. However, by working with a\nqualified business broker, these challenges can be easily overcome. At VR New\nHaven, we’ve compiled a comprehensive buyer database, and we know how to match\nthe right technology business with the right set of buyers. We also understand\nthe conditions within each market and can help sellers choose the best time to\nlist their company.<\/p>\n\n\n\n

Negotiation is another significant element of any business\nsale. Buyers are going to try to push for the best possible price. If a seller\ndoesn’t have experience at the negotiating table, they\u2019re at a significant\ncompetitive disadvantage and may end up settling for less. That’s why it’s crucial\nto work with an experienced business broker such as VR New Haven \u2013 a partner\nwho can ensure that you don’t leave money on the table.<\/p>\n\n\n\n

Find the Right Business Broker to Help Sell Your Technology\nCompany<\/h2>\n\n\n\n

Here’s the truth about selling a business \u2013 it’s often a\nprotracted process, and there are a variety of pitfalls that can derail your\ndeal. If you’d like to expedite the sale and settle on the most favorable terms\npossible, it makes sense to work with a qualified business broker.<\/p>\n\n\n\n

A professional broker has the experience to help ensure that\nyou do your due diligence. They can also help you prepare all of your documents\nand anticipate any problems that may arise during the sale process. Plus, a CT\nbusiness broker firm can market your business effectively, connect you with\nprospective buyers, and help negotiate an attractive price for both parties.<\/p>\n\n\n\n

However, choosing the right business broker is exceptionally\nimportant. At VR New Haven<\/a>, we have\nextensive experience selling technology companies. We understand the industry,\nthe market, and the unique characteristics of buyers for tech companies.<\/p>\n\n\n\n

When you work with our knowledgeable team, you\u2019ll follow our\n9 step\nsales process<\/a> that can help ensure that your exit is fast, smooth, and on\nyour preferred financial terms. If you’re seeking to initiate the sale of your\ntechnology firm, we encourage you to contact VR New Haven<\/a> today.<\/p>\n","protected":false},"excerpt":{"rendered":"

Much like the manufacturing industry of a few decades ago, the technology sector is now playing a key role in powering the U.S. economy. The tech industry, which is worth roughly $1.8 trillion, is one of the fastest-growing fields both in the U.S. and globally. Given this growth rate, it’s no surprise that the technology […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":15564,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_mi_skip_tracking":false},"_links":{"self":[{"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/pages\/15800"}],"collection":[{"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/comments?post=15800"}],"version-history":[{"count":0,"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/pages\/15800\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/pages\/15564"}],"wp:attachment":[{"href":"https:\/\/vrnewhaven.com\/wp-json\/wp\/v2\/media?parent=15800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}