How to Evaluate Multiple Offers for your Tech Services Business

If you’re a tech services CEO going through a process of selling your business and get to a point where multiple firms are looking to acquire you, you need to evaluate your options.  What should someone be looking for?

Questions

First off: how does someone get multiple offers?

What’s an exclusivity clause in an LOI?

How should a seller approach negotiations when they have multiple interested buyers?

We talk about deals getting done when there’s a strategic, cultural, and financial fit. How do you evaluate the strategic fit?

Can you discuss the importance of cultural fit between the buying and selling companies? How should this influence the evaluation of offers?

What are the key financial metrics that sellers should focus on when comparing different offers? How do these metrics impact the decision-making process?

Beyond enterprise value price, what other terms in an M&A offer should sellers pay close attention to?

How do you evaluate transition terms for owners?

Should the due diligence process be a factor in deciding which buyer to move with?

What are common pitfalls or mistakes that sellers make during the M&A evaluation process and how can they be avoided?

Could you share insights on the role of legal, accounting, financial advisors, and MYA advisors in the M&A process? How critical is their expertise in evaluating offers?

Listen to Shoot the Moon on Apple Podcasts or Spotify.

Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.