Preparing yourself to sell your technology company
As an entrepreneur, when you have the thought, "I want to sell my technology company," that is not enough to turn that dream into a reality. Business leaders do not always realize the amount of planning that goes into the mergers and acquisitions process. Whether you are a serial entrepreneur or a business world veteran who finally wants to exit the game, there are important factors to consider.
According to a recent VentureBeat article, it is essential to know why you are selling and why a business would want to buy your firm. When everything is aligned, it will not only help the entire process run smoothly, but it will also ensure that the two companies have complementary goals and ideas for your company.
"Whether the buyer is looking to acquire your company because of its killer IP, strategic value, customer base or engineering talent (aka an 'acqui-hire'), understanding a buyer's motivation will inform how the deal is structured," the article explained.
Additionally, it will be beneficial to keep your employees informed on the M&A activity, said a Miami Herald article. While there are some areas of knowledge that just yourself and upper management can be privy to, workers will still appreciate being kept in the loop. This could also raise morale and ensure that your business will stay strong during and after an acquisition.
A technology acquisition might mean the end of you being at the helm of your company, but with the right planning, you can ensure that your product or services will still continue to positively impact customers. It doesn't have to take years to sell your firm, but it won't happen overnight either. With the right amount of thought, the right opportunity can be found for you and the purchasing company.