Technology

Selling a Technology Business

Are you considering selling a technology business? Maximize the value of your technology company with Viking M&A’s tailored business brokerage expertise, connecting sellers to interested buyers and securing lucrative deals.

When selling a technology business, understanding its true market value is paramount. With our extensive experience working with technology businesses, we can comprehensively and accurately assess your company’s value. We recognize that each technology business comes with its unique considerations. Whether you operate a software development company, a cybersecurity firm, or an artificial intelligence startup, we work closely with you to identify your objectives and priorities. Our goal is to connect you with motivated buyers and assist you in achieving the best possible outcome, all while maximizing the value of your business through our specialized business brokerage solutions.

Valuation Dynamics for the Technology Sector

When selling a technology business, several factors come into play that distinguish it from other sectors. Here’s what you need to know:

Technology Business Valuation Multiples

The lifeblood of the technology sector is its rapid evolution, with the valuation of businesses reflecting this pace. Typically, the valuation for technology firms is derived from a multiple of their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). However, you often see revenue-based multiples used in cases of early-stage or high-growth tech companies reinvesting heavily and showing lower net earnings.

Valuation multiples in the tech industry soared during the 2020 pandemic, but 2022’s economic downturn saw them head back toward earth as many tech firms failed to meet their projected value. As a result, acquisition standards in the tech industry have been tightening up, and buyers want to see a clear profitability trajectory.

For accurate, up-to-date, and specific data on current tech industry valuation multiples, consulting M&A professionals (like ours at Viking) is essential. In addition to our access to reputable industry reports, financial databases, and current transaction comps, we have a wealth of experience providing accurate and customized valuations for businesses in the technology sector.

Factors Influencing Valuation

The technology sector’s vastness means that a range of factors can influence a business’s valuation:

  1. Product/Service Maturity: Early-stage products, even if they have high potential, might have a different valuation than mature, market-tested products.
  2. Recurring Revenue: Companies with Software as a Service (SaaS) models or subscription-based services often have higher valuations due to predictable revenue streams.
  3. Intellectual Property: Patents, proprietary technology, or unique algorithms can significantly increase a company’s value.
  4. Market Leadership: Being a frontrunner or having a significant market share in a particular technology niche can command premium valuations.
  5. Growth Trajectory: Rapidly growing tech companies can achieve higher valuation multiples, especially if this growth is accompanied by a clear and scalable path forward.
  6. Client Concentration: A diversified clientele reduces dependency risks. In contrast, heavy reliance on a few major clients is a potential risk, impacting valuation negatively.
  7. Talent and Team: A skilled and cohesive team, especially in R&D and leadership roles, can enhance a company’s value.

At Viking Mergers and Acquisitions, our advisory approach puts our client’s interests first. We leverage our industry knowledge to ensure favorable outcomes and facilitate smooth transitions for all parties involved. We are committed to assisting you through the entire process of selling a technology business, from the initial valuation to the post-closing transition. Our reputation is built on transparency, integrity, and customer satisfaction. Contact us today to explore how we can help you achieve your goals.

Are you a potential buyer exploring technology businesses for sale? Viking M&A specializes in guiding entrepreneurs through the process, matching sellers with qualified buyers. The technology industry offers diverse opportunities, from software startups to established IT service providers, so we focus on providing the information and insight needed to make well-informed decisions throughout the acquisition process. Contact us for more information about technology businesses for sale or sign up for our buyers email list.

Hear From Our Experts.

Technology Businesses for Sale

Well-Established Technology Company #1879

Technology
Price:
$3,200,000
Revenues:
$2,580,551
Adj. Cash Flow:
$799,758
Location:
North Carolina

Financial Services Software Platform for Sale #1853

Technology
Price:
$2,200,000
Revenues:
$1,010,000
Adj. Cash Flow:
$256,000
Location:
United States

Highly Profitable Systems Integrator #1812

Technology
Price:
$2,500,000
Revenues:
$2,500,000
Adj. Cash Flow:
$1,000,000
Location:
Houston, TX

Technology Business for Sale in Florida – Telecommunications Products & Services #1731

Technology
Price:
$1,300,000
Revenues:
$1,128,000
Adj. Cash Flow:
$331,000
Location:
Florida

Successfully Sold Technology Businesses

IT Services Business for Sale in Charlotte (#1620)

Technology
Revenues:
$3,675,770
Adj. Cash Flow:
$1,617,381
Location:
Charlotte, NC

Recurring Revenue Telecom Business for Sale (#1607)

Technology
Revenues:
$1,042,879
Adj. Cash Flow:
$658,872
Location:
United States

#1568 IT Support Provider

Technology, Professional Services
Revenues:
$1,710,205
Adj. Cash Flow:
$495,000
Location:

IT Company with Strong Cash Flow

Professional Services, Technology
Revenues:
$3,721,873
Adj. Cash Flow:
$859,403
Location:
Southeast

IT Consulting Firm

Professional Services, Technology
Revenues:
$1,635,836
Adj. Cash Flow:
$257,639
Location:
Greater Charlotte Area

Managed IT Services Provider

Technology
Revenues:
$2,205,198
Adj. Cash Flow:
$1,098,931
Location:
North Carolina

B2B IT Data Security National Reseller

Technology
Revenues:
$11,062,513
Adj. Cash Flow:
$608,969
Location:
North Carolina

ATM Financial Services Company

Service, Technology
Revenues:
$2,300,000
Adj. Cash Flow:
$767,414
Location:
Southeast

Business VoIP Telephone Provider

Technology
Revenues:
$1,311,000
Adj. Cash Flow:
$525,000
Location:
Southeast USA

ERP Reseller/Software Developer

Technology
Revenues:
$2,500,000
Adj. Cash Flow:
$568,233
Location:
North Carolina

IT Services Firm Specializing in Outsourcing a& ERP Software

Technology
Revenues:
$2,821,455
Adj. Cash Flow:
$447,428
Location:
North Carolina

Contact Us Today.

Interested in Buying or Selling a business? Fill out the form below and we’ll reach out as soon as possible. Our business valuations are strictly CONFIDENTIAL & our initial consultations are Free.

We respect your privacy and will keep all conversations CONFIDENTIAL and PRIVATE unless otherwise discussed.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.