Work from Anywhere: The Impact on a California IT Business Preparing to Sell
One bright spot in the COVID pandemic has been the IT industry. With companies shifting employees to remote work, businesses starting from home, and other factors, tech both big and small has seen a significant boost, and the California IT business is no exception.
This means it is a great time to be in the IT industry and if you are in that industry, it may be a great time to sell. But what does the work from anywhere revolution mean to IT companies, particularly if you are thinking of selling in 2021? Here are some things to consider.
Not only are your customers working remotely, making your services more in demand, but your employees are likely working from anywhere as well. This offers some challenges when selling your business. Your buyer will want to know about key employees, their loyalty, and their productivity.
This also may create another challenge for a new owner. Once the sale is announced, introducing someone new to remote workers comes with its own unique challenges. While this can be navigated when onboarding employees, it can be even more disconcerting when introducing a new business owner who might bring a lot of changes.
A remote workforce does not mean you can’t sell your business. Tech companies have operated on this model for years, and the IT industry is better poised to handle this transition than most. It is something you need to consult with your business broker with and keep in mind when you are ready to sell.
Many IT companies have their own on-site servers with built-in physical and digital security to protect intellectual property and the work your team is doing. What about when they go remote? There are still security options, but you need to have these in place so you can show any buyer that you are taking active steps to protect the things that set your company apart.
These steps can include:
- Proprietary VPN software
- Firewalls and Vaults
- Encrypted Cloud Data Rooms
- Password protected company asset access.
These are just a few of the things you can do, and those in the IT industry know better than most the steps that will protect your company data and your employee information. It pays to be vigilant though. Even Twitter is not immune to security breaches.
Your California IT Business Location?
While it used to be that your location was vital to your business, that is not as true anymore. While there are still distinct advantages in being located close to Silicon Valley and San Francisco, many of your employees may never visit your headquarters.
While this may have seemed unrealistic pre-COVID, the work from anywhere environment means that not everyone has to physically be in the pitch meeting. Tools like Zoom, Microsoft Teams, and others mean collaboration can happen from anywhere.
It is still a good idea to talk about your lease with your landlord if you have one and examine or renegotiate terms before you sell. However, in the commercial space, it is a renters market at the moment, and you may have options that were not viable even last year.
Your buyer may think that location is not as important for IT companies as it once was, but that may not be true in your case. If you ship physical parts to local companies or work closely with them in some other physical way, let your buyer know that location does matter.
Keeping Your California IT Business Up to Date
Finally, just because you have decided to sell your IT business in California doesn’t mean you can afford to relax and fall behind the improvements happening in your field. In fact, quite the opposite is true.
Buyers are looking for businesses that are profitable, growing, and on the cutting edge. Even during the process of the sale, it is important that you run your business just as well or better than you did before you decided to sell.
Remember, you must still work to serve your clients and customers, meet your employee needs, and carry on business as usual.
This is why, when you decide to sell your California IT business, you need a Certified Business Broker on your side. They will help coordinate and “quarterback” many aspects of selling your business, from listing to marketing to finding a qualified buyer. A good business broker will be by your side every step of the way all the way to escrow and closing.
But it all starts with knowing what your business is worth now. Even if you plan to sell in the next year, the time to start preparing is now. Are you ready to sell or do you want to start a conversation about your exit plan and what your business is worth now?
No matter what your reason for wanting to sell, whether you want to retire or move on to another business adventure, we want to talk to you. We’d love to be your business broker every step of the way. Give us a call or contact us here.