Buyers: How it Works

Given the limited options available to owners of smaller firms interested in an exit, TechServe has created an innovative “Marketplace” that will bring interested buyers and sellers together.

Creating a Pool of Qualified Sellers and Eliminating Upfront Risk for Buyers

For buyers, TechServe has both expanded the pool of potential sellers and eliminated a buyer’s up-front risk with no fees due until a firm has identified a potential acquisition target. Because sellers are required to go through a four-step process that includes an objective valuation analysis and guidance on actions necessary to prepare for sale, TechServe has created an environment that increases the likelihood deals will close.

Once a prospective seller completes the valuation and assessment process and decides to move forward with ‘going to market’, TechServe will then match the seller with interested buyers based on the pre-identified preferences of the parties.

Sellers ultimately control which companies they wish to engage with as a prospective purchaser. If a seller authorizes TechServe to engage with a prospective buyer, the prospective buyer’s representative will be asked to enter into a Non-Disclosure Agreement (NDA). With permission of the seller, TechServe will release information to allow a prospective buyer to evaluate the company for sale.

TechServe’s Role

TechServe will work with buyers as part of its efforts to create a market for prospective sellers. However, to avoid conflicts of interest, during any negotiations, TechServe will only represent the prospective seller. As part of the process, sellers agree they will neither market nor negotiate for the sale or merger of their companies other than through TechServe for the duration of the engagement and for one year from the last communication with a prospective buyer that took place during the engagement, whichever is later.

What Buyers Pay

As a major innovation in the buying and selling of staffing firms and recognizing buyers greatly outnumber sellers, TechServe has dramatically lowered the cost for sellers with the goal of encouraging more firms to consider a potential sale using the ‘Marketplace’ process. For participating buyers, TechServe has expanded the pool of potential sellers and eliminated upfront costs and risk with fees only payable upon identifying a potential acquisition target and closing a deal.

• Upon finding a potential acquisition target, buyers compensate TechServe for its role in creating a market and facilitating the transaction.
• Upon submitting a Letter of Intent (LOI) to a prospective seller, a buyer pays $1,000 ($4,000*)
• If a buyer obtains a fully signed LOI, a buyer will pay an additional additional $4,000 ($6,000*)
• Upon a deal closing, a buyer will pay a success fee based on the transaction value.

*Buyers that are not TechServe members paying dues on an annual or quarterly basis pay higher fees and will only have access to seller information after members have reviewed and considered the opportunity.