Visit our Covid-19 Guidance Hub Click here

Top Tips for Selling a Tech Business

Published: January 1, 2019


TOP TIPS FOR SELLING A TECH BUSINESS

STRATEGIC PRE-SALE PLANNING

Develop a tactical plan for your sale, taking into account resources, timings and the attitude of potential buyers while allowing you to operate the business as usual.

Business risks should be evaluated in a vender due diligence exercise well in advance of a sale so that any potential buyer concerns can be proactively addressed.

A formal valuation of the business will set realistic price expectations and inform your negotiations.

Audited financial statements will give potential buyers greater confidence and make the business a more attractive prospect. An audit can add significant value by identifying material areas of weakness within the business and its systems.

GET THE RIGHT TEAM

Assembling the best team of external advisers is key. They can guide you on the financial, tax and commercial matters as they arise and help you resolve any issues quickly. Reconciling commercial considerations and their tax implications often requires expert advice.

PRODUCE WELL-PRESENTED COMPANY RESULTS

Ensure that your key figures, KPIs and ratios are clearly explained and well set out.

PREPARE ROBUST FINANCIAL PROJECTIONS

Credible financial projections which demonstrate future growth and profitability are crucial for attracting buyers.

UNDERSTAND THE VALUE TO THE POTENTIAL BUYER

Knowing how key the acquisition of your company is to a potential buyer’s strategy can help you to maximise the sale price.

EVALUATE POTENTIAL STRUCTURING OPTIONS

Identifying and evaluating the different potential structuring options from both your point of view and the buyer’s will ensure that you are showcasing the most attractive version of your business to market.

ALWAYS KEEP YOUR DESIRED OUTCOME IN MIND

Throughout the complexities of the sales process, always keep your desired outcome in focus to ensure that you meet your objectives for the sale and maximise the benefits.

TO DISCUSS ANY QUESTIONS YOU MAY HAVE, PLEASE CONTACT

Ross Fabian
020 7874 7986
rfabian@hwfisher.co.uk

Contact us

We’d love to hear from you. To book an appointment or to find out more about our services: