03 Dec Steps to take 12 to 36 months prior to selling a technology company
Posted at 23:20h in Planning your Exit 0 Comments
Become a strategic target for a specific type of buyer (either real or hypothetical)
- What are the drivers to optimize your business?
- Revenue and profit growth are always important
- Complementary products and services
- Strong customer base
- Strategic roadmap
Increase the professionalism in your organization
- Demonstrate excellence in critical business areas – marketing, sales, technical services, customer satisfaction
- Look like a “mature” company that can fit into a larger entity
Get your house in order – remove potential roadblocks to a future deal
- Corporate clean up – corporate minutes, legal documents and outstanding issues, etc.
- Legal and tax compliance – federal and state taxes, insurance coverage, etc.
- Accounting and finance – recent company valuation, reviewed or audited financial statements, no unknown compensation or accrued benefit liabilities
Put your best foot forward
- Show that your company can hit its projections
- Demonstrate that key value drivers have been optimized
- Know your own weaknesses and what can be done to improve them