Exiting.
WHO BUYS
Competitors Larger companies entering the market Individuals and small groups acquiring small businesses Investment firms
WHAT THEY ASSESS
Revenue, and whether it is genuinely recurring Retention Growth Concentration among few customers How dependent it is on you
WHY DEPENDENCE ON YOU MATTERS MOST FOR SMALL BUSINESSES
A business only you can run is worth substantially less.
WHAT REDUCES THAT
Documentation Systems rather than knowledge Someone else able to operate it
WHAT TO PREPARE
Clean financial records, separated from personal ones Clear metrics, consistently calculated Contracts and agreements in order Intellectual property ownership documented
WHY INTELLECTUAL PROPERTY SPECIFICALLY
Contributions without written assignment become a problem at exactly this point.
WHAT DUE DILIGENCE EXAMINES
Everything: code, contracts, finances, security, customers.
WHAT TO EXPECT
Months, and substantial disruption.
WHAT AFFECTS PRICE
Growth rate Retention Margin Concentration risk
WHAT TO UNDERSTAND ABOUT OFFERS
That terms matter as much as the figure: how much is paid now, how much depends on future performance, and what you must do afterwards.
WHAT TO TAKE
Professional advice, before negotiating.
