When we talk to IT entrepreneurs, we often hear the phrase “Selling the company? Later…”.
Company sale. That is far away. That’s something close to retirement. Much too soon. But what if a company sale offers the chance for something new?
Why then wait until old age and not reap the fruits that are ripe now? This article provides the answers.
The German IT market in transition
The time is good for the sale of IT companies. The German IT market is currently consolidating. Companies can only grow organically very slowly due to a lack of resources. Certainly not optimal in a fast market. The solutions are acquisitions and sales. Successful IT companies directly buy many resources (and of course customers and turnover) through M&A processes.
We are in a buyer’s market. It follows that sellers can choose who they sell to - at least very often. There are hardly any bidding processes in the IT sector here with not at least three interested parties. The situation is good and comfortable.
What are the arguments in favour of selling a company?
If you run an IT company, you should think about it. A sale always brings a monetary advantage for the personal future and opens up new opportunities.
If you sell to a strong partner early on, you often have the opportunity to continue working on your business - only in a more relaxed way. Your business is better off financially through a sale, as the buyer is often a strategic investor who brings a natural interest in growth. Perhaps you still have many ideas on how to grow your business further, but lack cash flow and other resources. To realise these ideas, a company sale is an adequate means. Besides, with this step you have already arranged your succession and can look positively into the future.
Tips for further reading:
Preparing for business succession - 3 practical tips
Advice traps in the process of business succession
Selling a business: Why a pure success fee makes it difficult to provide serious advice
Free webinars on business succession