How to Sell Your IT, SaaS & Telecom Business
Selling a business can be a complex and time-consuming process. If you are looking to sell your IT, SaaS & telecom business, several variables can make the process simpler and more efficient. These include gathering information about your business, finding a suitable buyer, selling for the right price, and ensuring the sale goes smoothly.
Business brokers and M&A advisors are experts in valuing and selling businesses, and they have access to a vast pool of interested and qualified buyers. Your business broker and M&A advisors will work with you to attract as many possible buyers and confidentially disseminate information about your business. Keep reading if you want more information about selling your IT, SaaS and telecom business using a business broker and M&A advisor.
Finding a Business Broker and M&A Advisor
The first step in selling an IT, SaaS, or telecom business is finding a professional business broker or M&A advisor. A business broker and M&A advisor will have a lot of experience selling businesses, help attract buyers and get the best price for your business. Linkedin is a great way to find business brokers and M&A advisors who can best assist you with your business sale goals.
Furthermore, valuation, acquisition and transaction support are services business brokers and M&A advisors provide to their sell-side clients. This includes providing an overview of the selling process, from valuing the business to negotiating and closing the sale.
You can find a list of business brokers and M&A advisors by searching on the web or asking your accountant, lawyer, or other business consultants professionals who may be able to provide a referral. Check out the advisors firm is comprised of a team of professionals from various industries and also ensure they have the right academic and professional degrees. You should also discuss the experience they have selling businesses of your size and with the number of employees you have.
Preparing Your Business for Sale
Once you decide to sell, you must take the time necessary to prepare your business for sale. This preparation can include:
Updating financial records to ensure accuracy
Financial records and financial statements are essential selling points, so they must be up-to-date and accurate. You will also need to provide accountant-prepared financial statements with any tax returns for the last five years as part of due diligence during the selling process.
You should also review your business plan, including long-term goals and strategies for achieving them so to provide a clear path to success for the potential buyer.
Updating your business website and social media accounts
Your business’s website should be up-to-date with current information about your business including a description of products or services offered. Similarly, social media pages such as LinkedIn need to include relevant details like contact info for employees or managers.
It is also a good idea to keep track of any changes in the business over time and update your website accordingly so that potential buyers can see how you have evolved.
Cleaning up your company’s image (if necessary)
The more prepared you are for selling a business, the more straightforward it will be for the business broker and M&A advisor to attract potential buyers and transact a sale. With a clean image, you can ensure no surprises during due diligence and throughout the selling process. You can also present the best parts of your company and make the sale seem less risky and more advantageous to the business buyer.
Attracting Potential Buyers
A business broker and M&A advisor will use different methods to attract potential buyers for your business, including advertising in industry media or selling at conferences or trade shows.
They may also contact buyers who have inquired in the past who might be interested in buying your business. The business broker and M&A advisor’s role is to find a suitable buyer and ensure there is a smooth transaction.
Finding a Suitable Buyer
Once you have attracted potential buyers, it’s time to find out if they are interested in your business. Most business brokers and M&A advisors will ask for information about the buyer’s finances, business background and experience before releasing any information. This is done to ensure that only qualified buyers are considered possible candidates for the sale of your business.
Information Needed for Selling an IT Business
Once you have engaged the M&A advisor or business broker, the next step is to gather information about your business and let them put together a selling package. This includes, but is not limited to:
- A profile of your business, including its history, services, and target market
- Accountant prepared financial statements
- The company’s organizational chart and personnel list
- Copies of any contracts or agreements your business has with customers, suppliers, or other businesses
- Any patents, trademarks, or copyrights your business owns
- Your company’s website and social media URLs
With IT businesses, you may also want to include a summary of the technology your business uses or has developed, such as software and hardware.
Information Needed for Selling a SaaS Business
If you’re selling a SaaS business, there are some different things you will need to include in your selling package. In addition to the information above, you should also have:
- A description of your target market and how you reached it
- A description of your SaaS software and related technology
- Your pricing model for services
- Your company’s sales process
- An explanation of how your business will continue to grow if it is sold
- Any marketing materials you have created for your business
- A list of all the software and hardware developed and used by your company, including websites and social media accounts
When a company offers SaaS services, it’s important to remember that the buyer will want to know how your business can continue on without you and grow. So, if you have a large customer pool of people who have subscribed to your service, be sure to include that material in your selling package.
Steps for Selling a Telecom Business
If you are considering selling a telecom business, there are also some other items you will need to include in your selling package. In addition, you should also have:
- Ensure your service contracts are up to date
- A description of the services you provide, such as local phone service or high-speed internet access
- Are there any special licenses required for selling your business? For example, a company that sells wireless services may need government permits.
- A list of any trademarks or copyrights that your company owns
When selling a telecom business, it’s important to remember that buyers will want to know about the recurring service contracts you have as well as infrastructure and assets. They will also be interested in your contracts with your suppliers.
How to Sell Your Business: Next Steps
Once you have gathered all the information about your business and provided it to your M&A advisors and business broker to assemble in a marketing package, you will be ready to meet with buyers. The selling process can take several months or even years, so don’t get discouraged if it takes some time for potential buyers to express interest.
Keep in mind that selling a business is a complex process, and you will need to be patient and stay organized. The more prepared you are, the smoother the selling process will go. In addition, your M&A Advisor and business broker will be a valuable resource during the selling process, so be sure to keep in touch with them and follow their advice.
When selling your business, it’s important to remember that there are no guarantees. However, if you take the time to prepare appropriately and work closely with your M&A advisor and business broker, you will have a higher chance of selling your business for the best price possible.
Should I Sell My IT, SaaS & Telecom Business?
If you are thinking about selling your IT, SaaS or telecom business, you should consider a few things. First, ask yourself why you want to sell your enterprise. Are you feeling overwhelmed by the day-to-day operations?
Some additional reasons for wanting to sell a business can include:
- You have reached retirement age and no longer wish to run the company.
- You want a new challenge and start another business or move into a different field.
- You or a family member has health concerns that require you to spend more time outside of the business
- Your company is no longer growing, and you don’t have the resources to expand.
- You are selling your business due to a divorce or other family-related issue.
If you decide to sell, you must do so in a way that will be most beneficial for both parties involved. For example, consider whether you want to sell the company or sell only certain company assets. Also, be sure to get details from potential buyers about their plans after selling your business.
Conclusion
When considering the sale of your IT, SaaS and telecom business, it’s essential to be organized. First, you will need to have all your documents and decide if it’s a good idea to sell your business. Then, once you’ve made these decisions, contact an M&A advisor or business broker to help you attract potential buyers.
Contact us for a consultation and valuation if you’re interested in selling your business. In addition, we offer acquisition and transaction support services that can help you sell your business confidentiality. Our team of business brokers and mergers and acquisitions specialists will work with you to find the best buyers for your business and the best possible selling price.