The Tech M&A Podcast

← The Tech M&A Podcast2 oct. · 35 min

Episode 116: Preparing Your Tech Company for Acquisition - M&A Advice From Founders Who Sold

Episode 116: Preparing Your Tech Company for Acquisition - M&A Advice From Founders Who Sold2 oct.35 min

What does it really take to sell a technology company? In this founder panel, entrepreneurs who have successfully navigated acquisitions share firsthand lessons on M&A strategy, choosing the right buyer, preparing for due diligence, timing an exit, and navigating life after the deal.

The conversation covers the unique challenges of selling AI and technology companies, running a structured M&A process, evaluating strategic fit, preparing company records and KPIs, managing negotiations, and building the right advisory team. The founders also share candid lessons about the workload and pressure of an acquisition and what they would do differently if they went through the process again.

Key Takeaways Prepare early: Start improving the metrics and areas buyers will scrutinize well before you're ready to sell. Run a structured process: A broader M&A process can uncover buyers and opportunities outside your existing network. Clearly communicate differentiation: Technology and AI companies need to make their competitive advantages understandable to both business and technical buyers. Look beyond valuation: Strategic fit, culture, customers, capabilities, and the post-acquisition vision all matter. Prepare for due diligence: Organize financial, legal, operational, and company records before a transaction begins. Build an experienced advisory team: M&A, legal, and accounting advisors can help founders navigate an unfamiliar and complex process. Be ready for the workload: Selling a company can become a second full-time job while you're still responsible for running the business. Keep founders aligned: Co-founders should continually revisit their goals and priorities as negotiations evolve. Think about the exit years in advance: Strategic preparation can create more options and a stronger position when the time comes to sell. Plan for what comes next: An acquisition can lead to new roles, new resources, time away, or another startup. Chapters 00:00 Welcome & Founder Introductions

00:45 Why Founders Decide to Sell

03:58 From AI Entrepreneur to Acquisition

06:04 Selling an AI Company

07:50 Finding the Right Buyer

08:53 Choosing an M&A Advisor

11:23 Inside a 33-Day Acquisition

13:18 Why a Structured M&A Process Matters

15:06 The Hardest Parts of Selling a Company

16:44 Preparing for Due Diligence