How to Sell Your IT Business
Are you thinking about selling your IT business? The IT industry has exploded over the past decade. Ways of doing things that involve IT-related companies, which were not even fathomable a short time ago, are now the norm. Now is a great time to sell your IT business. The industry continues to grow and evolve at a rapid pace, and there is great interest in acquiring already established information technology entities.
Entrepreneurs, growing organizations, investors, and even competitors are looking to purchase IT companies to expand their capabilities. Many IT companies have received high valuations and been involved with big-money deals. Are you ready to put your IT company up for sale?
At Beacon, our expert team can provide your business with a proper valuation, help you set the right sales price, market your business, connect you with buyers, and much more. Here we’ll explain some of the general steps involved with selling your IT business.
Establish Your Business Value
Getting a third party business valuation is important. While you may have an idea of how much your company is worth, getting a proper business valuation in Canada can provide you with a better estimate of your company’s value and how much you can expect to get for it, given the current market conditions in your industry. As part of your business valuation, consultants will look at everything from sales, assets, inventory, debt, and other financials to fully understand your risks and opportunities.
Organize Your Financials
Buyers want as much information as possible about your company. They want transparency when it comes to your operations and especially your financials. They want to see your business records, tax returns, and business books to see income, expenses, and sales. If you are thinking about selling, getting your business finances in order is a great starting point. It will be a must if you want to attract buyers and get top dollar for your company.
Buyers are interested in purchasing companies with a strong upside. They want to see sales on the rise and potential for greater profitability in the future. It’s also important to shed excess inventory, focus on operating lean and efficiently, and ensuring operations are up to date with modern standards. You want to make your business look as strong as possible, and boosting sales can help.
Use an Experienced Business Broker
You may be an IT expert, but if you truly want to broker the best deal when selling your company, using an experienced business broker is your best option. Brokers can help you properly plan for the sale of your business and provide you with invaluable insights about how to position your business. They can assist with marketing, finding the right buyers, negotiating the sale, and closing the deal. Plus, using a business broker will afford you more time to improve your business, identify shortcomings that could hurt sales profits, and give you peace of mind in knowing you put your business in the best position to sell. At Beacon, our business brokers will help you capitalize on your opportunity to sell and ensure you get the best value for your investment.
Market Your Business to Find Potential Buyers
You need to find potential buyers if you want to sell. This can be challenging for some IT business owners. Knowing where to look, how to qualify buyers, and how to separate those who are interested from those who are real candidates to buy your company can be difficult. At Beacon, we have access to the resources and proper channels to find you serious buyers for your company.
Get Legal Documents in Order
So, you’ve found a buyer. Now you have to get the legal documentation in order to close the deal. You’ll need to negotiate price and sale terms and define an exit strategy for how you will leave the company and how assets will be transferred to the new ownership. Business brokers can help you ensure the right documents are in place so you complete the deal.
Sell Your IT Business with Beacon
If you are ready to sell your IT business or would like to learn more about your options, we want to speak with you. Our business brokers are experts in working with companies in the IT industry. We can help you effectively position your company to increase your company value before listing it for sale. Together, our company can help you maximize your profits. Contact us today to start the process of selling your information technology business.