Thinking of selling/exiting my IT services business

[arshkumarsingh]

Me and my partners have been discussing on selling our IT Services business as everybody has decided mutually decided to go different directions.

Now there have been some offers made, but since people on this forum seem to be much more experienced than me in this field, I want to take your advice in this whole process.

If you all can help me out in finding buyers be it private equity, institutional or individual, and also some points that you think I should keep in my mind throughout this process.

Any advice will be appreciated and if you would like any specific details please reply.

Arsh

[cvs]

Here are a couple of posts by a solo-founder i have been following over the years.

I Sold TinyPilot, My First Successful Business

Lessons from my First Exit

He recently sold his business (a hardware product) after 6 years of running it,
and has been exceptionally open about the entire process.

Hopefully, his perspective on the various challenges over the years helps folks in similar situations.

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@arshkumarsingh

Me and my partners have been discussing on selling our IT Services business

What are your reasons for wanting to exit now?

• Was it the plan all along to exit by now or anything changed over time / recently?
• Have you achieved all that you set out to when you started it?
• …

What have you done so far to find buyers? Why not satisfied with the results?
(am assuming this as you are still looking)

@arshkumarsingh

If you all can help me out in finding buyers

Are you offering folks some sort of finder’s fee / commission?

@arshkumarsingh

Now there have been some offers made

So, what are the various reasons that you did not accept any of these offers yet?
Anything (or two) in particular, that you are looking for?

[arshkumarsingh]

@cvs

Was it the plan all along to exit by now or anything changed over time / recently?

The plan wasn’t that initially but differences in which direction to go in future and no consensus has brought us to this decision.

@cvs

Have you achieved all that you set out to when you started it?

Business or growth wise I don’t think there is a ceiling for those things. Other than that we have achieved all the goals we have targeted. Now at 66 Crores in revenue this FY closing, have been growing at around 100% every FY.

@cvs

What have you done so far to find buyers? Why not satisfied with the results?

That process has been very informal right now, mostly in the same industry and circles. So far we havent approached any entities specializing in these things.

@cvs

Are you offering folks some sort of finder’s fee / commission?

I would have to discuss that with other partners too but they would also be open to it if it is reasonable.

@cvs

So, what are the various reasons that you did not accept any of these offers yet?
Anything (or two) in particular, that you are looking for?

We haven’t accepted them because we want to exhaust all offers and then take the best one. The two main things we would look for in particular would be the price and ease of doing business with them.