Selling a business in any industry is typically a long and complex process that requires considerable preparation. When a business operates within the tech and media industry, however, you also need to factor in industry-specific challenges that can negatively impact its final value.
Many business owners plan and prepare for their sale years in advance, and as such, can deal effectively with any issues over a period of time. The end-goal is always the sale of the business, which guides their strategy throughout.
So, before we look at the specific challenges facing tech and media businesses, here are a few of the general issues to consider regarding the selling process.
Interested parties will need to understand why your business is up for sale. It may be a straightforward reason such as approaching retirement, or a desire to move on to a new venture having fulfilled your ambitions for the current one. Or perhaps the business sale is part of a strategy you have followed closely throughout the company’s life.
Professional accountancy assistance and legal support is often crucial, but you should also consider the benefits offered by using business sales brokers with specific experience in your industry. Selling My Business specialise in the tech and media industry and have a long history of successful sales.
A detailed non-disclosure agreement should be signed by anyone requesting an information pack. This provides some protection for sensitive business data, trade secrets, and financial information.
Ultimately, the sale of your business relies on the provision of accurate and reliable information. The buyer due diligence process involves close inspection of your books and other supporting documents, and generally reveals any anomalies or inaccuracies.
Tech and media companies can operate under a number of revenue streams, so transparency is crucial when selling a business in this industry. You need to demonstrate where revenue originates, and how much has been invested in each product or service, using a reliable system of revenue recognition. Prospective buyers then have an idea of the best path for future success, and which areas they might like to develop based on current revenues.
The risk of cyber attack is high for tech and media businesses, and the need to secure a growing number of entry points for hackers is an ongoing issue. Protection for your own content and data, as well as that of your customers, is high priority. The recent introduction of GDPR means the ramifications of failing in this task are high, apart from the fact that without speedy and effective procedures in place to detect and deal with security breaches, a potential buyer could also devalue the company.
Given the level of competition in this industry, businesses that fail to invest in new technology can stagnate and fall behind, losing market share as their systems and practices become obsolete. A continuous cycle of investment drives growth, and allows for greater agility in a constantly evolving marketplace.
The expectation that new products and services will consistently be brought to market creates a complicated operating environment for tech and media businesses. There is pressure to implement growth strategies effectively, and keep up with rapidly developing trends.
Successfully selling a tech and media business, and achieving your main goals from sale, requires careful planning and execution. So how can Selling My Business help you with this?
Our understanding of the tech and media industry, combined with extensive practical experience of business sales, allows us to provide an accurate and reliable valuation for your business.
We will ensure your business sale is planned and executed with foresight and precision, taking full account of your personal goals and objectives.
The negotiation stage can be particularly arduous for business owners – having immediate access to professional advice and support paves the way for a successful outcome.
From the initial information memorandum to the final sales agreement, our experts at Selling My Business will ensure your interests are placed to the fore, and that your exit is as uncomplicated as possible. Please call one of the team to arrange a free consultation.