How do I know when it’s right to sell my technology business?
This blog has previously explained how a strong technology acquisition should be like a strategic marriage. However, as a small to medium-sized business owner, how do you know when it is the right time to sell your technology company? Furthermore, how can you be sure that you have found the best opportunity available?
It is important to remember that there is not one answer for this question. Each organization is different, and each owner is likely to have different needs and hopes for varied outcomes when it comes to M&A activity.
According to an article in Entrepreneur Magazine, there some simple questions owners must answer before deciding to sell their business. Included in the news source's suggestions, it is important to ensure the company can continue to thrive without you – the owner – or without a particular key customer. A strong business will remain stable even when ownership changes.
Additionally, it is crucial to view your business as a potential buyer would, and be prepared for any questions that might arise. Are there potential deal breakers? While it is not necessary to nitpick every aspect of your company, it can be beneficial to just be prepared for any inquiries and ensure that you are not taken by surprise. Unresolved issues, however minor they might seem, could arise in full force during the negotiation process and hinder an otherwise smooth acquisition.
Lastly, it can be helpful to partner with an expert in the field, such as investment banking firms. If the right opportunity can be found to sell your technology business, these professionals can help you find it.