For tech founders considering their next move, the M&A space can be complex and daunting. But it can also be hugely rewarding – both financially and in protecting the legacy of the business they’ve worked so hard to build.
M&A activity is particularly dynamic in the tech sector, given the fast-moving nature of the technologies and trends, but one thing is certain: preparation is key to maximising an exit strategy.
While there are several options available, the first priority is establishing which one works for the specific needs and priorities of the business. Here are some of the most common exit routes for tech founders:
Sale to trade
For founders looking for a clean break, this can provide a compelling option. Higher valuations are possible due to the cost synergies available through consolidating functions and processes, but it’s important to remember that there’s usually no further financial upside post-sale as the seller relinquishes their full stake in the business….
