Selling Your Technology Company for Maximum Value: A comprehensive guide for entrepreneurs by Rupert Cook

Author:Rupert Cook [Cook, Rupert]
Language: eng
Format: azw3
ISBN: 9781906659752
Publisher: Harriman House Publishing
Published: 2009-09-01T04:00:00+00:00

Making first contact

Once you’ve found your man, how do you get this person interested in your business? This activity requires careful preparation as you may well only have one shot. Even if you have managed to find the person’s telephone number you’ll want to email them first to stand the best chance of getting through, and so that they know your name and a bit about your business before you ring. Most corporate development people prefer approaches by email, as it means they can deal with them in their own time and according to their priorities. It’s all right to say at the bottom of your email that you will contact them and ask them what would be the best time and number on which to ring. If they’ve read your email, then at least they’ll know who you are and will be expecting a call.

You need what’s known as a teaser document to send to your target. Its purpose is to spark their interest and leave them wanting to know more. At this stage you won’t want to reveal the company name.

As this is the first communication they’ll ever have received from you, make sure it is as compelling as possible straightaway, that it is personalised for them and don’t make it too long. A typical teaser should include brief details of your value proposition, your technology and your customer base. If you’re revealing the company name at this stage, then include a bit about the strength of your management team and your brand. Accompanying the teaser should be a description of what you feel your key value will be to the target company. Do not try and get them to sign an NDA before telling them anything; if they don’t know you, they won’t bother. Be as specific as you possibly can for each target: what are you going to do for their company and what aspect of their business will you improve? Remember the reasons why companies make acquisitions; is it going to improve their sales or profits, give them a new complementary product range, significantly improve their existing product range or open up new geographies or customer bases to them? You have got to be hitting one or more of these buttons to catch their interest. Also, make sure that the teaser is phrased appropriately. If you know this person has had a career of pure corporate finance then do not stray into overly technical descriptions. But do not assume that this is the typical profile of a corporate development person. If you’ve done your research carefully you might just find that they did a Masters in Computer Science or worked as the CTO of a software company somewhere in their past. If they themselves joined the company through acquisition they’ll understand what you’re going through, so get them onside as early as you can.

Do not patronise these people or try to impress them that they vitally need you for the future of their business; that is for them to decide.

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