If you are planning to sell a technology company, Keystone Business Advisors can guide you through the complexities of the sale process to minimize friction and optimize end results.
Our team of M&A advisors are up to date on the latest developments in the world of technology and know what it takes to maximize selling price and terms when selling a technology business.
We have completed transactions in multiple industry segments ranging from cloud computing and managed IT services to telecommunications and security technology.
Many of our M&A advisors have a background and operational experience working in technology, with direct experience in software, telecommunications, semiconductor manufacturing, and digital marketing.
Overcoming Technology Industry Challenges
The technology industry is constantly advancing, with new products and features being released faster than ever. All this change is thrilling, especially for the innovative businesses behind today’s latest technologies. However, it’s also extremely difficult to keep up with leading-edge competitors, cybersecurity issues and a changing regulatory landscape.
Without a doubt, technology businesses face challenges that are quite unique and merit their own specific approaches. One of the top issues faced by many technology companies is the skills gap and finding talent. Buyers will want to be confident that they will be able hire and retain employees and be assured that key employees of the business will stay on after they have taken over.
As in most business, recurring revenue is a key component that drives value for many technology businesses. The beauty of the SAAS model is that typically 100% of its revenue is recurring in nature which is one of the reasons such companies sell for such high multiples. Managed IT services have also shifted its services offering to a managed service model making them more desirable and valuable compared businesses with project or hourly fee-based models.
Keystone Business Advisor differs from a typical technology business broker or M&A advisor as we focus on companies with annual sales between $2 million and $100 million. While most business brokers in Southern California focus on the sale of smaller businesses, we direct our focus to an underserved market, namely lower middle-market, privately owned California-based businesses. On the other hand, most investment bankers in Southern California service businesses with a minimum of $50 to $100 million in gross sales and charge upfront retainers. In contrast, Keystone Business Advisors has developed a proven system for marketing and managing the transaction process for lower-middle market technology companies with a fee structure that is not due until the transaction is complete.
We have a database of thousands of interested qualified buyers interested in technology. A key part of our job is to proactively identify the prospects we believe will ultimately be the right buyer for your business.
A sample of technology companies we handle include:
- Information Technology
- Managed Service Providers
- Value Added Reseller (VAR)
- Cloud Computing
- Digital Marketing
- Supply Chain Software
- Internet Service Provider (ISP)
- Security Technology
- Document Scanning & Storage
- Technology Consulting
How to Sell a Technology Company
Once you give us the go ahead and state, “Sell my technology business,” we create a comprehensive and customized marketing program is designed to reach the maximum number of potential buyers to sell your technology company. The program starts with an in-depth 20 to 60 page Confidential Information Memorandum, which provides an overview of the key aspects including but not limited to value drivers, operational overview, key management and employee overviews, customer and market overviews, financial summaries, and SWOT analysis. We have one chance to make a first impression, which is why we go above and beyond the competition.
While it is common for technology business brokers in Los Angeles and surrounding counties to have many, even dozens of clients at the same time, our advisors work on five or less clients at time. This tremendous focus allows us to build a very comprehensive, and results-driven marketing program. As a result, we have maintained a success rate of over 80% over the past couple of years compared to the industry average of 30%.
Sell a Technology Business with Keystone Business Advisors
There are a number of strategic buyers currently looking to consolidate through acquiring technology companies. Many strategic buyers are in acquisition mode to gain a competitive advantage as they can reduce competition while increasing the scale of their operations and in some circumstances decrease their fixed costs.
Through consolidation, large entities can reduce their prices through increasing efficiencies. At the same time, it incentivizes their customers to buy more for less. Through acquisitions, companies can also show their customer base that it has a large and more diverse selection of products and services. Whether you are ready to retire or just burned out, we believe that now is an ideal time to go to market with a technology company.
Our team thrives on overcoming the challenges found in the technology sector and finalizing successful deals. Over the years, we have successfully completed more than 200 transactions. Our rate of success is over 80%, which is far higher than the 30% industry norm. Our highly experienced team takes technology business broker and technology M&A advisory services to a new level so that you can be certain you receive industry-leading advice and the best possible price for your business.
Put our decades of industry experience to work on your company’s behalf. Our goal is that you walk away with the optimal price and deal terms for your technology company.
Refer below for a sample of technology business transactions we have recently completed.