The M&A Mastermind Podcast

The M&A Mastermind Podcast - Episode 49 - How and When to Sell a Technology Company


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Michael Klumpp, a member of Cornerstone International Alliance, discusses the importance of having a strong footprint in the US for technology companies looking to sell. He emphasizes the need for timing in the technology sector and advises potential sellers to look for market activity and growth rates when considering a sale. Klumpp also shares insights on finding the best buyer, deal structures in the IT space, and the challenges of selling a company with high customer concentration. He highlights the importance of having clients and a mix of profitability and growth to attract buyers.

Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.

 

Some Key takeaways include:

  • Having a strong footprint in the US is crucial for technology companies looking to sell.
  • Timing is key in the technology sector, and sellers should consider market activity and growth rates.
  • Finding the best buyer involves approaching both strategic buyers and private equity companies.
  • Deal structures in the IT space are becoming more complex, often involving vendor notes, earn-outs, and rollover equity.
  • Selling a company with high customer concentration can be challenging, but finding the right buyer is possible with perseverance and a strong network.
  • Companies without clients and only one product face a high failure rate in the market, and it is important to focus on achieving a mix of profitability and growth.
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    About the show:

    The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.

    The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.

    With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.

     

    Chapters

    01:58 Introduction

    03:14 The Importance of a Strong Footprint in the US for Technology Companies

    05:17 Timing and Market Activity in the Technology Sector

    11:46 Finding the Best Buyer: Strategic vs. Private Equity

    18:19 Complex Deal Structures in the IT Space

    27: 01 Challenges of Selling a Company with High Customer Concentration

    31:20 The Importance of Clients and a Mix of Profitability and Growth

     

    Keywords: M&A, deal making, technology industry, M&A, sell side, buyer, deal structure, customer concentration, growth rate, profitability

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    The M&A Mastermind PodcastBy Nick Olsen

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