Amber Stoner

Finally, we reach out to potential buyers, but as we alluded to earlier, how you contact those buyers is crucial. This is where having a professional process and a trusted M&A advisor that is deeply connected to the universe of buyers can make the difference between achieving maximum value and being a deal disaster.

You need to put together an introductory letter after you've written the larger story with the executive summary. This is a document that would not identify the company, but would describe the opportunity and summarize the situation. This is something that we would advocate going out with early in the process, at the inception of your contact with buyers.

Also, you'll need a financial memo to be delivered only after an NDA is in place. That would contain historical and projected financials. You may want to present a formal valuation later in the process. This can help to screen initial interest.

And last but certainly not least, log everything. That will allow you to be dynamic in your responses.

Tim Goddard

Thanks, Amber. Great stuff.

This is a segment from the July 2019 edition of the Tech M&A Monthly webcast "2019 Mid-Year Valuations, Deals & Trends Report." For more information on Tech M&A processes, opportunities and more, visit the Tech M&A Resource Center.