IT Services Business For Sale

You have decided to put your IT services business for sale, but how to attract qualified buyers confidentially? 

When you operate a business, there will come a time when you'll want to sell it. Perhaps you want to retire, need money to fund some other endeavor, or don't want to manage the business anymore.

Selling your IT-managed services company is a great way to monetize your business while allowing someone else to take it even further than you did. 

However, selling your company isn't as easy as putting up a sign and waiting for buyers to come rolling in. First, you need to know who your ideal buyer is and what kind of incentives you can give them to ensure they bite. 

Then, read on for some helpful advice on how you can attract qualified buyers so that when the time comes, selling your IT-managed services company won't be so hard after all.

Find a Qualified IT Broker To Help With the Exit Plan

If you're serious about selling your IT managed services company in the lower middle market sector, you must find a reputable M&A firm that can handle the entire process for you. Several qualified IT business brokers in California can help with your business sale, and there are many reasons this is a good idea. 

First, getting a good read on the right price to list your business for sale confidentially in the marketplace can be challenging if you're not into business sales. IT business brokers or sell-side advisors will use their expertise to help you price your business so that it gets the attention it deserves and sells quickly. 

With the M&A advisor, you can work on the working capital turnover, about 20% in the US, to determine your business worth. 

Second, brokers will also know what kind of buyers are looking for businesses like yours. This means that they can help you find qualified business buyers, which makes the whole process much smoother. 

Finally, you don't want to go at this alone. You may have the best IT-managed services company, but it doesn't do you any good if no one knows.

Do a Buyer Analysis

Once you've found an IT business broker you trust, you should sit down with them and discuss the type of buyer you want to purchase your IT services business. You want to discover their motives, what assets they have to offer as part of the deal, what kind of timeline they have in mind, and if they're qualified business buyers. 

You might know what type of person you want to buy your business, but you also need to be realistic. For example, suppose you're hoping to sell to another business owner. In that case, you might be disappointed if you find out they're only interested in buying your company to acquire new clients. 

Do your research and figure out what kind of buyer you want, so you can attract them when you sell your lower middle market IT-managed services company in California. You'll also be able to weed out any potential buyers you don't want to consider.

Marketing, Marketing, Marketing

Marketing might seem like a strange suggestion, but before you put your MSP for sale, you should try to get a little buzz going about it.

Creating a buzz is especially important if you're trying to sell your business to a private equity firm. These investors tend to keep a low profile, but they also happen to be some of the biggest spenders when buying companies like yours. 

You may also consider reaching out to your existing and potential customers to let them know you're selling. This outreach will help you get your name out in the community while creating a buzz. While at it, try to work on the account receivables, which is 65 days for information technology services, to leave your books in order. 

If you're trying to go the private equity route, you should also try to get your company listed on private equity websites. These sites are designed for buyers to find companies for sale, so it's an excellent place to start.

See How Rogerson Business Services Get Business Sold Quickly - I Want To Learn About Marketing The Deal

Due Diligence on the Buyer

Before you even start listing your IT services business for sale, you should research the buyers you're hoping will purchase it. This will help you weed out potential buyers who might end up being less than ideal.

For example, if you're hoping to sell to another business owner, you must ensure they're reliable and have the money to buy your company.

If you're considering selling to a private equity firm, you need to ensure they're trustworthy and have the means to make the deal happen. You don't want to make a deal only to have the buyer disappear before they have to pay you.

It would help if you also talked to other business owners who have sold their companies to private equity firms. 

You can often find these people on LinkedIn or other networking sites. Ask them what their experience was like dealing with a private equity firm. Again, you want to ensure the company you're dealing with is reputable and trustworthy.

See How a Buy-Side Due Diligence Looks Like - I Want A Walk Through

Negotiation and Closing

No matter how many people want to buy your IT services company, there's a good chance you'll have to negotiate a bit before someone puts down the cash to seal the deal. This is part of the process, so don't let it get you down. If a buyer is interested in your company, they'll be willing to talk with you about the price. 

You should also keep in mind that the final cost of your company will probably be lower than you initially listed it. Negotiating is the only way you can ensure you get a good deal. You may have to walk away from the table several times before finding a buyer willing to pay what your company is worth. 

Once you find a buyer willing to pay your asking price, you'll need to draw up an official contract and close the deal. Don't forget to draw up an agreement with the buyer and ensure all the details are spelled out clearly. You want everything to be legal and official.

See What are Warranties and Representations When Selling a Business in California

Final Words

By following these simple steps, you will be well on your way to attracting qualified buyers to your IT-managed services business for sale. These are the exact steps Rogerson Business Services took to sell an IT services business in California.

Remember, the most important thing is to find a credible M&A sell-side advisor to help with the sale, marketing, buyer analysis, and due diligence to attract buyers who are a good fit for your business.

So, are you ready to take the next step? Let us help you get started today.

Conclusion

Selling your information technology services company in the lower middle market in California is a life changing event that requires forethought and careful planning.

Before selling your IT firm, know its worth in both tangible and intangible assets. Find a reliable professional representative like a certified business intermediary specialized in M&A deals to manage the process while you continue to maintain your business.

The IT broker will do the heavy lifting by finding qualified and serious buyers to and negotiate with vetted buyers and close for a reasonable price. 

See how Rogerson Business Services sold businesses in California by Visiting These Case Studies.

If you have decided to value and then sell your information technology services business now or within the next six months, click here to get started with this quick and simple form, so we can understand your pain points better and prioritize your inquiry with RBS Advisors.

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