The sale of your business technology is the most important transaction you will ever. The errors in this process can significantly erode your transaction proceeds. Do not spend twenty years of your work and skills that develop your business as a pro only to exit as an amateur. Below are ten common errors to avoid: 1. Selling due to unsolicited bid to buy – one more reason for owners of the land tells us who have sold their trade had received an offer from a competitor or more often now, the Indian company looking for Now a customer base in the United States. If not previously steste considering selling this business, you probably have not taken some action important business and personal leave to your conditions. The trade may have some easily correctable issues that could reduce its value. You can not prepare so that identity and a lifestyle Replace the vacuum caused by the separation from your company. If you are prepared, you are most likely leave on your own terms.2. Poor books and annotations – leading many entrepreneurs hats. Sometimes they become so focused on the issue next version that are lax in keeping financial records. A buyer is going to do a complete look in your financial entries. If they are made ill, buyer loses confidence in what they are buying and its perception of risk increases. If it finds some negative surprises late in the process, the records of the purchase price can be hard. The transaction value is often attacked well beyond the economic effect of surprise. Convince a good accountant to do your books.3. By acting independently – the entrepreneur may be the first expert GUI interfaces, but it is likely that the sale of its business will be once in a occurrence in the course of life. The errors in this regard have a huge effect. It is especially critical to have a good M & A adviser if you are selling a technology because these companies do not measure the traditional metrics of valuation of the company. If an owner fails to secure a fair representation and has several qualified buyers who covet its technology, it can possibly leave a lot of money on the table. The sale of the technology is complex. It is a better deal for structuring some of the transaction value as earnings outside based on the performance of sales of acquisition dell'alberino? Unlike in the head after the tax continues between a sale of the asset sale and a reserve? Your accountant can not daily, but a tax accountant certainly ago. Is your family of business with sales of legal affairs work? I recommend properly on rep and guarantees that will be in the purchase? Your buyer 's team will have this experience. Your team should combine the experience that it will cost to the sense of their fees.4. For your skeletons – if your company has any, the process of due diligence certainly prove. One of the key companies in information technology is the title free intellectual property. Your employee agreements are well written? If assumeste outside programmers, was their specific agreement on the property of their output? The concern is that the buyer once it became public that the company has deep pockets of owner, employees or former disappointed contractors can redo the surface of the eye to bring the lawsuit. Before that your company has turned the inside – and outside the buyer spends thousands in this process and before the other interested buyers are put on close – reveals that problem up-front. We sold a company that has had an exceptional CFO. In the first meeting with us, told us of his company 'responsibility not to the extent of pension s. Could lead to legal and actuarial resources suitable for the table and give the buyer and its advisers abundance of get their arms around all'edizione. If this is late in the process, the buyer burst could make the deal or the value of the transaction attacked an amount far above the potential liability.5. Leaving the word out – the confidentiality of the process of selling the business is crucial. If your competitors are discovering, much can damage your customers and prospects. It can be a big drain on morale and performance of employees. What if your head of the development of systems gets skittish and entertains bids from other companies and sheets while you are selling? The buyer wants your top people and represent a significant part of your future transaction value. If the word that you are for sale comes out, your suppliers and bankers get nervous. Nothing good happens when the work comes out that your company is sale.6. Contracts difficult – here meaning the daily contracts that are in place with employees, customers, contractors and suppliers. Your employees have non-competes, for example? If your company has owned intellectual property rights have very clearly defined in your supervisor's agreements and employees. If not, you might consider the closing of expressive dell'alberino of holdbacks. I am your customer agreements assignable without consent? If not, customers may cancel the transaction dell'alberino. Your buyer will make the pay for this one way or another. If you are tempted to sign this great thing to bargain rates to pump up your sales price business, think again. Closing in a market share below could really cause a discount to your price.7 sales. Faulty behavior of employees – assicurarseli you have to have agreements in place so they can not hold employees hostage to one in a transaction on hold. Key employees are key to the transaction value. If you think there are suspicions editions, you may want to realize the living allowances. If you have a bad actor, dismiss him during the transaction could cause issues. You want to be preventative with your buyer and minimize all the damage your employee could cause.8. No understanding of your company 's value – business valuations are complex. A good broker and business & meters, a counselor who has experience in your industry is your best chance. The scores of companies are big business for evaluations of business for the gift tax situations and inheritance, divorce, etc.. Tend to be very conservative and their results could vary significantly from your results from three strategic buyers in a battle to buy your company. Where a trade in services can sell for between 75% and 100% of sales last years, for example, technology companies are everywhere the program. One of our customers had a coveted part of the technology and software could get to 8 X recent years as sales of its purchase price. Certainly we can not have and we would not have predicted that early dell'aggancio, but what a pleasant surprise. When you sell your company, let the market provide a competitive value.9. You enter an auction of one – this is a play silly, but imagine a large corridor of an at Sotheby 's occupied by an auctioneer and a guy with a shovel in advance. "I hear $ 5 million? Some $ 5.5 million? 'The type is sitting on his shovel. Pretty stupid, right? But we hear countless stories about a competitor that comes with an unsolicited and after that a little light that negotiates the owner sells. Another common history is the owner says his banker, lawyer or accountant who is studying the possibility of selling. His well-meaning professional says, "I have another client who is in your business. Introduce you. "What follows know that trade is sold. Credilo that these people are buying it trade at a large discount. That 's not silly at all! 10. By giving away value in negotiations and due diligence – when selling your business, your goal is to get the best terms and conditions. I know that this is a scandal, but the buyer is trying to pay as little as possible and trying to get the contract terms favorable to him. These objectives are not compatible with yours. The buyer is going to fight hard on issues like the total price, cash at the end, earns outs, notes the vendor's rep and guarantees, commitment and holdbacks, closing dell'alberino records, etc.. If revenue in a rally in central negotiation compromise before the know, your great Mackintosh is a Cheeseburger.Due care of the child has a dual purpose. The first is obviously to ensure that the buyer knows exactly what it is paying. The second is to attache the value of transaction records. Of course this happens after their LOI sent via the other bidders for the 30 – 60 days of exclusivity. If you don 't have a good team of advisers, this may get a expensiveAs my dad used to say, there is a replacement for experience. Another said that when a man with money and nessun'esperienza met a man with experience, people with experience walk away with money and man with money walk away with some experience. Remember this when this include the sale of your business. Probably will be your first and only experience. Avoid these mistakes and to make that experience beneficial.
Dave Kauppi
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