Tech M&A

Buy & Sell_OUI.jpg — Tech M&A

Sell-Side

80% of self-managed efforts to sell a company end in failure.
Transaction is a one-time event for an important number of companies and its success depends on the M&A process preparation and execution on both sell- and buy-sides.

TEASE, NEGOTIATE, SELL

For the most important transaction of your life, you deserve to get ready to succeed. Your challenge is threefold: make your homework, negotiate the maximum price and sell with minimum liabilities and fair employment structure. Too often, sell-side M&A process is treated arbitrarily, handled differently depending on who works it.
To succeed, you need a dedicated Tech M&A team to work alongside your Executive team.

We propose to be your M&A team in charge to conduct the M&A sell-side journey as follows:

1. Preparation

How should you market yourself in a “deal way”? Is your business plan updated and realistic? What are your valuation expectations?

ElleTech will build the Teaser to make the buzz amongst potential investors. Once the long-list of investors defined, ElleTech will produce the Information Memorandum to communicate your business and tech value. ElleTech will conduct an initial valuation of your business to set deal expectations.

2. Short-Listing

How serious your long-list buyers are? Are you sure they can honour their side of the deal? What are their preferred deal structures? Based on the Indication of Interest (IOI) letter, which ones should be short-listed?
ElleTech will conduct the first level of due diligence of the non-binding offers received to build the short-list of potential investors.

3. Due Diligence

Do you have a data room established and documentation ready to share? Do buyers have access to all decision-making material? Do you have a Vendor Tech Due Diligence? This is where deals die – good preparation is key.
ElleTech will prepare data room documentation alongside your operational teams and ensure coordination of due diligence advisors (e.g. Finance, Tax, HR). ElleTech can conduct Vendor Tech Due Diligence to present a credible and independent report about your tech value proposition.

4. Negotiation

Who makes the first offer? Who drafts the Share Purchase Agreement (SPA) and controls the Binding Offers? How do we stage an auction? This is where you get the deal in place.
ElleTech will provide support in identifying and obtaining the best offer and conditions.

5. Closing

What are the “Warranties and Indemnities” to set in the SPA? How about escrows or holdbacks? How do you handle payment? What regulatory hurdles are there?
ElleTech will make sure the deal is closed under the best conditions and terms.

Let’s talk about selling your Tech company

80% of self-managed efforts to sell a company end in failure.Transaction is a one-time event for an important number of companies and its success depends on the M&A process preparation and execution on both sell- and buy-sides.