Successfully selling an IT company - Selling a software company

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Why should you sell your IT & software company now?

In the last few years, the market for IT consulting and software has literally run hot. The scarce resource is personnel, which is practically impossible to find or only very expensive. For this reason, 2020 is the optimal time to sell your IT company - before the general economic situation deteriorates and the turnover of IT companies stagnates or even declines.

Since 2019, we have noticed that there is also brisk demand for small and medium-sized IT companies and that many bidders are submitting high bids in bidding processes, resulting in a veritable bidding war.

Selling a company: Why should you sell your IT & software company at all?

The sale of an IT & software company is a more than normal occurrence these days. When selling a company, the shareholders can realise high purchase prices and then invest them in a diversified manner or often even take a minority stake in the company. The founders have thus secured a high value behind the firewall - before the market should turn and purchase prices fall or a company should become unsaleable because employees and/or customers leave or prices fall.

When the company is sold, the founders have the opportunity to continue working in the company for several more years and perhaps to realise projects internationally or with a large shareholder that they have not been able to win or realise so far due to the size of the company. With the financial means from the sale of the company, one can accompany the further growth of the company in a more relaxed manner.

Preparation for a company sale - professional preparation increases the chances of a high purchase price when selling the IT & software company

Every company sale is a complex process and should therefore be professionally prepared and implemented. Both the preparation and the implementation should be carried out together with an experienced M&A advisor. As a shareholder, one should not make the mistake of selling the company on one's own alongside the day-to-day business - in such a case, the business suffers and as a result, the turnover and profit and thus the value of the company decreases. For these reasons, the sale of the company should be planned and implemented as professionally as any major investment in the company is prepared and implemented.

Why should you definitely hire an experienced M&A advisor for the sale of your IT & software company?

A professional M&A advisor can assess the chances of a successful sale of a company very well before the assignment. Furthermore, he knows the current company valuations for IT companies and can therefore give a realistic range for the company value and the purchase price before an assignment. Many years of experience in the sale of IT companies ensures that all documentation contains the information required by potential buyers, thus speeding up and shortening the sales process.

With an experienced M&A advisor, potential buyers can be contacted anonymously and their interest in a purchase can be ascertained - without the sale getting around in the market among customers and employees and negatively affecting the operational business. If the M&A consultant has many years of experience in the sale of IT companies, he or she will also have many good international contacts with potential buyers.

The M&A advisor thus ensures that the M&A process is completed quickly and that there are many bidders. Experienced M&A advisors manage the process of a company sale in such a way that it is completed quickly and requires little time commitment from the seller.

The M&A advisor moderates the entire M&A process and coordinates all internal and external parties. This facilitation function allows for no disagreements and for the M&A advisor to exchange opinions and negotiating positions before, between and after discussions and negotiations and to act as a "bad guy". Mistakes that cause high costs or bring the process to a standstill or have other disadvantageous effects for the seller are excluded or circumvented by the M&A advisor. For this reason, the chance of a successful conclusion of the contract increases significantly.

Contact KP Tech Corporate Finance M&A Advisory Germany Austria Switzerland

Would you like more information?

As an owner-managed and independent management consultancy, we specialise in corporate finance consulting. The focal points of our M&A consulting are the topics: Company sale, company acquisition, company valuation, company succession as well as advice on private equity transactions.

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Phone +49 89 21536609-0
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KP TECH Beratungsgesellschaft mbH
Maximilianstr. 2
80539 Munich / Germany
Further offices in Berlin, Frankfurt/Main, Duesseldorf

Phone +49 89 21536609-0
Contact form

About us

München • London • Philadelphia

KP Tech has been providing consulting services for more than 20 years with a focus on company acquisitions, company sales, company succession, equity capital and company valuation. Our clients include small and medium-sized companies as well as international groups and private equity companies. Most of our clients come from the technology, services and consumer (including e-commerce) & healthcare sectors.


KP Tech is a member of the Association of German M&A Consultants (VMA), a non-profit alliance of prominent partner-led and independent M&A consulting firms (Frankfurt/Main).