Transaction Process

We work exclusively with IT-enabled businesses who are ready to be sold, and M&A decision makers who are ready to buy. Our industry knowledge helps us determine whether a seller is a good fit for our buyers before making a match.

For nearly 20 years, IT ExchangeNet has been fostering strong and steady relationships with private equity firms and strategic buyers who are expanding their business platforms and geographic footprint through M&A. We keep it simple: Learn the intimate details about our clients, and then identify the best possible buyers to make the acquisition based on aligned businesses philosophies, cultural fit, and total transaction value.

 

In order to qualify as an IT ExchangeNet client, prospective sellers must demonstrate management excellence, a definable pipeline of sales opportunities, and a line-of-site toward future growth. While there is an active market for distressed businesses, we do not represent turnaround candidates. Our network of buyers seek businesses with strong upside potential, whether the founder/CEO remains involved or has a personal exit strategy. 

Within 30 days of engaging with IT ExchangeNet, we'll have you meeting with qualified buyers who want to acquire IT businesses valued up to $25M (USD).

We focus on smaller mid-market businesses (sub $25M in transaction value) that are historically ignored by larger investment banks and M&A advisors. Specific segments of the IT industry served include Managed Services, Software as a Service (SaaS), Infrastructure as a Service (IaaS), IT Security, IT Supply Chain, ERP, CRM, Software Development, Big Data, and IT Services.

To learn more about how to maximize the value of your IT business:

Here's how our process works!

  • Data gathering from Seller

  • Develop proprietary Blind Profile Infographic

  • Pre-Campaign "Bootcamp" from ITX professional

  • Work plan timeline

Day 1 - Day 7

Kick Off

  • ITX develops a qualified, curated investor/buyer mailing list particular to Seller imperatives

  • Launch campaign 

  • Added value to Seller from the ITX team:

    • Present custom valuation analysis​

    • Industry review and M&A market analysis

Day 8 - Day 15

Build Campaign

  • ITX conducts follow up calls with hand-selected buyers

  • Comprehensive, focused email marketing campaigns to buyers

  • Online showcase listing of Seller's blind profile infographic

  • NDA Management

    • Fast, protected signature transfers​

    • Seller approves before full execution of any document

  • Introductions to buyers/investors

Day 16 - Day 60

Buyer/Investor Outreach

  • Seller prepares needed company materials prior to next step: due diligence

  • Continued 1:1 coaching from ITX professional

  • Seller responds to pre-due diligence Request for Information

Day 31 - Day 60

Management Meetings

  • Hire legal representation

    • We suggest our Sellers hire outside teams (legal and/or financial) to assist with due diligence. ITX gladly refers top-notch firms fit for the task.​

  • LOIs submitted by buyers/investors with mutual interest from seller

Day 50 - Day 70

Letter of Intent

  • Continued 1:1 coaching from ITX professional

  • Seller & Buyer teams negotiate Letter of Intent(s) (LOI)

  • Seller signs LOI, enters into exclusivity period with one Buyer

  • Continue management meetings

  • Complete due diligence

  • Negotiate Purchase Agreement

Day 76 - Day 99

Negotiation &

Due Diligence

  • Close transaction

  • Seller & Buyer teams prepare press releases, outreach and/or celebratory announcements

Day 100+

Close Deal

                                                                                                       .

Day 100+

Wealth Creation

Seller Partners

© 2020 IT ExchangeNet