How Do I Sell My High Tech Business

A frequent question is: How Do I Sell My High Tech Business. There are several steps that should be taken to maximize the value and obtain the best terms. These are outlined below.

Marketing the Company for Sale

Selling a high-tech business is a unique experience and special expertise is required to ensure a successful sale. High-tech businesses have many unique selling points that must be effectively highlighted to potential buyers in order to derive the best value. These unique selling points are the primary focus of the Confidential Information Memorandum (“CIM”) which is a detailed report on the company for sale. It outlines the opportunity for the prospective buyers. An effective CIM will clearly describe the company’s strengths, technological advantages, growth prospects, financial data, etc.

Preparing a Global Buyer List

When selling a high-tech business, contacting buyers across the globe is vital. Technology is always in high demand and foreign buyers may be willing to pay a premium for a high-tech business, particularly if a specific technology is not available in their home country. Given the fact that technology is continually changing, the technology portfolio of your company may be attractive to some buyers but undesirable to others. For this reason, it is essential to utilize a broad based, global list of buyers when selling your high-tech business.

Focus Buyers on Future Performance

High-tech businesses can often times have volatile historical financial performance, especially during phases of new product development and introduction. An experienced financial advisor will be able to focus buyers on your company’s future and how your technology can be utilized in tandem with a prospective buyer’s strategy. Framing the acquisition in this way will achieve a higher valuation for the business and better terms.

Maintaining Confidentiality

Confidentiality throughout the sales process is paramount. An experienced financial advisor will ensure that strict Non-Disclosure Agreements are in place before sharing non-public information with potential buyers. When selling your high-tech business, it is critical to protect your technology as it is often the key factor that distinguishes your firm from your competitors. A financial advisor will be able to control the sales process in such a fashion that enough information is revealed to prospective buyers to garner interest and derive value, but not enough to copy your firm’s technology portfolio.

An experienced financial advisor will guide you throughout the process of selling your high-tech business. By focusing prospective buyers on your company’s unique selling points and growth prospects, the valuation for your high-tech business can be significantly increased. This approach, completed by firm with years of international experience, will always answer the question: How Do I Sell My High Tech Business.