Sell your Tech business for Maximum Value
Orange County technology companies are in high demand from buyers, and selling at premiums!
Pacific Business Sales are Orange County Technology Business Brokers specializing in the sale of tech companies ranging from SaaS companies, to software development, Data Centers/Hosting, ecommerce and more.
At Pacific Business Sales we thoroughly understand the process of selling a tech company and have a large and diverse pool of buyers interested in technology companies like yours.
The Benefits You Get When Selling Your Technology company with Pacific Business Sales
Confidentiality is of paramount concern to our technology business sellers and we take this very seriously. All of our ads for your tech business are general with no specific information that would indicate which tech company is for sale or where it is located. Buyers do not receive any confidential information until they have signed a Confidentiality Agreement (NDA) and completed our Buyer Profile which includes information on their financial position, experience, and credit score.
Marketing Your Business
Marketing is one of our strengths at Pacific Business Sales. It’s one thing to have your ad pop up in front of thousands of buyers, but that’s meaningless unless they actually click on it and inquire. We write excellent ad copy for technology businesses and headlines that draw prospective buyers to our ads. We also feature all of our ads so they are at the top of the business for sale websites and not buried with the basic ads.
We also send email blasts to our database of over 3,000 buyers as well as to the BizBuySell buyer database of buyers that have expressed interest in technology related businesses like yours.
Comprehensive Confidential Information Memorandum for your business
We prepare a comprehensive Confidential Information Memorandum (CIM) for every business we represent. The CIM is the prospectus and marketing brochure for your business that buyers receive after they sign the NDA. The CIM is critical in the buyer’s decision process as this is their first in depth look at your company. Our CIM includes information about the company, financial statements, staff list (names redacted), equipment list, SBA financing structure, SBA Lender pre approval letter and a summary of your services/products.
The first meeting with prospective buyers is with us and is essentially a pre-screening to determine their abilities and frankly how interested and serious they are. After the initial meeting we schedule a meeting with you, the buyer and us to discuss the details of the business. Many of the basic questions are answered in our initial meeting, however, buyers often will ask these questions again because they like to hear it straight from the owner. Many of our first buyer-seller meetings are held via Zoom with a second meeting in person for the buyers that want to take the next steps. Of course the next step after our meetings is to prepare an offer.
Preparing the Offer
All of our Purchase Agreements are prepared on the CABB (California Association of Business Brokers) Asset Purchase Agreement of Stock Purchase Agreement. Our firm has experience in both Asset Sales and Stock Sales (note that an Asset Sale is a transaction type, not to be confused with an asset liquidation – see our page Stock vs Asset Sale).
We prepare the offer with the buyer and send it for signature via Docusign. When the offer has been signed by the buyer we review it with you, explain the details, and prepare a Counter Offer if necessary.
Due Diligence is a very critical step in the transaction process of selling a technology company. This is where the rubber meets the road so to speak. During Due Diligence the buyer and often their CPA will review the company’s tax returns, P&Ls, bank statements, and other records to confirm the revenue and earnings are what is claimed. The buyer will also be reviewing the overall company to ensure it is well run and a stable business. We facilitate Due Diligence with both Buyer and Seller assisting in the process and keeping it on track. After Due Diligence is complete and the contingency is removed escrow is opened.
We understand tech businesses, their operations, how their financial statements work, and we know how to value technology companies with their unique financial structures. Most importantly we know how to sell tech companies and we get them sold!
It is critical that your Tech Business Broker understands your business, can speak intelligently about it, knows how to prepare offers for a technology business, and how to obtain SBA financing. Bill Grunau, Broker & President of Pacific Business sales has over 20 years of experience in the high tech & aerospace industries ranging from engineer to senior executive roles of VP and CEO at both public and privately held companies.
Buyer Screening & Qualifications
A vital aspect of selling technology companies is ensuring the buyer understands the business, is capable of running it, and equally important, capable of closing the transaction. Tech businesses are in high demand and very popular with buyers, consequently we receive lots of inquiries for technology businesses and many of the buyers, while financially well qualified, do not have the experience or technical skills to run these companies. At Pacific Business Sales we are Technology Business Brokers specializing in the sale tech businesses like yours and we carefully screen prospective buyers for both financial qualifications and their ability to run the business. Our experience has taught us the buyers with weak industry experience may make an offer but often do not close the transaction. For tech businesses we look for buyers with experience in technology similar to your business, engineering, or relevant technical backgrounds.
Over 90% of our transactions use SBA financing, including SBA financing for tech companies of all types and sizes. We work exclusively with SBA PLP (Preferred Lender Program) banks that have financed many SBA transactions for manufacturing businesses with our firm. We know their underwriting guidelines and requirements and have long running relationships with these banks.
Why is this important to you as a seller? Simply put, CASH at closing! With SBA financing you don’t have to finance the sale with a Seller Note. In fact in many cases we have secured SBA financing for up to 90% of the purchase of tech businesses with a 10% buyer down payment. SBA financing will also finance the purchase of your A/R (accounts receivable) for the buyer. That means you get paid cash at closing.
Often the banks may require a small Seller Note of 10% of the transaction along with the SBA loan and in this case you would receive 90% cash at closing.
FREE Market Value Analysis
We offer a free comprehensive Market Value Analysis of your business using the same methodology and professional valuation software used by SBA Valuation Analysts. We have excellent comparable sales data for all types of manufacturing businesses sales directly from the SBA closed transaction database. With our Market Value Analysis you can be confident SBA financing will be approved at the value we recommend.
Technology Company Testimonials
“Electronic Recycler & E Waste Company
My business sold for good money and sold quickly. Bill was great to work with. I highly recommend Pacific Business Sales as your Orange County Business Broker.” – Kyle Mackey, Seller/Owner CArecycler.com – Online Consignment Depot
“Military/Aerospace EDM CNC Shop Seller
When I decided it was time to sell my aerospace/military manufacturing company, I had no idea how to proceed, but one name kept coming up – Bill’s. Best call I could have made. Within 45 days, I had multiple offers. Bill handled everything, and kept me in the loop almost daily. I really couldn’t believe how smoothly the entire transaction went, and ended up with the perfect buyer, and just the deal we had discussed on our first meeting. If you are serious about buying or selling your company, do yourself a favor and give Bill a call.” – Steve W, Aerospace machine shop owner and seller
Are You Ready To Get Started? Let’s Talk!
From Owner To Owner, We Understand How To Sell Your Technology Business
E-Commerce companies are unique businesses to own and run. We owned and operated a Digital Marketing Agency for several years, eventually selling it to the employees so we could focus on Pacific Business Sales. We have built e-commerce websites for clients on multiple platforms as well as running large SEM (PPC) campaigns for major brands selling online. We understand e-commerce and digital marketing and as your Broker, we understand you and your business.
E-Commerce businesses are in high demand, selling for much more than brick and mortar businesses. Many buyers wrongly assume that they are simple to run and underestimate what it takes to run these businesses. Our experience in digital marketing gives us the insight to explain your business to buyers, what is involved in running it, and pre-screen prospective buyers for our clients.
We know how to value E-Commerce business. We use PeerComps for all of our Market Value Analysis reports. The PeerComps valuation software was developed by Gulf Coast Financial based on their valuation software used for business valuation (appraisals) for SBA loans and independent business valuations. The comps (comparable) sales data in Peercomps is from the business valuations in the SBA database of closed transactions.
In 2020 80% of our transactions were financed with SBA financing. We are experts at SBA financing and work directly with SBA PLP (Preferred Lender Program) lenders.
It is vital for your Business Broker to understand your business, what’s involved in running it, how to value it, how to obtain SBA financing for the transaction, and most importantly be capable of closing the deal.