People who start software and information technology companies are generally very smart people. When it comes to representing yourself in the sale of your business, the key issue is not smarts, but experience. The purpose of this article is to highlight the intelligence versus experience issue and give examples where experience trumps intelligence. Some very well-known examples were the experiences of the great author, George Plimpton as he stepped into the boxing ring against Joe Louis, put on the goalie pads for the Boston Bruins or barked out signals as the quarterback for the Detroit Lions in a pre-season football game.
- They know the market and the valuations.
- They have an active database of identified buyers.
- By representing yourself, you alert the market, your customers, your competitors, and your employees that you are for sale.
- Running a business is a full-time job. Selling a business is also a full-time job.
- A business owner normally conducts a serial process (one buyer at a time) which dramatically reduces his market feedback and negotiating position.
- It is complex, you may only sell one business in your lifetime and the buyers are much more experienced than the sellers.
Dave Kauppi is a Merger and Acquisition Advisor and Managing Director of MidMarket Capital, providing business broker and investment banking services to owners in the sale of information technology companies. To view our lists of buyers and sellers click to visit our Web Site MidMarket Capital