Why do you need a saas business broker?
Working with a business broker allows your exit process to remain confidential. Confidentiality protects the relationships with customers, employees, suppliers, and competitors. In addition, an advisor well versed in the technologies, languages, and business requirements of building software products is key to creating credibility with highly technical buyers. Software companies can also be unique in achieving exceptionally high growth rates. The high growth rates of successful software companies can make valuations difficult using traditional methods. Your advisor should have specific experience valuing high-growth software companies.
What should one be aware of when choosing a business broker?
Integrity and reputation are essential. A successful exit is a once-in-a-career opportunity for the business owner. Consequently, owners need to work with someone they trust and whose advice they’ll seriously consider.
What is the process of selling a business?
It is a multistep process, the basic stages are valuation, packaging, marketing, screening the buyers, discussions with buyers, acceptance of offers, due diligence, and closing.
How do you determine the value of a business?
My approach to valuation is to follow industry norms. Typically, industry norms involve applying multiples from past, similar transactions. Valuation is more art than science, and getting into an appropriate range will attract multiple offers. Therefore, by attracting competing bids, we can understand what the business is worth and what deal structures and terms are possible.
What is a safe way to sell your business?
As a professional advisor, I can protect the confidentiality of my clients’ exit plans from customers, employees, suppliers, and competitors.
How long does it take to sell a business?
Most opportunities require six months to find the buyers and close a deal. However, some transactions close faster; others take 9-12 months of effort.
Do I also need an accountant and an attorney to sell my company?
Yes, all of my clients need both an attorney and a CPA to assist with the transaction. I can work with your existing advisors or, if you need help finding either an accountant or attorney to help with the sale of your business, I have a large referral network and will provide a few names for you to contact.
Do I have to put an asking price on my business?
No, we do not have to advertise an asking price. We do need to determine what the business is worth so we know when a solid offer has been received.