During this initial phase of the process, using a brief questionnaire and during the course of one to two telephone calls, a TechServe advisor will assess an owner’s readiness to sell, motivations and expectations—often neglected considerations. There will also be a general discussion of the marketplace and an informal discussion of valuations. All communications will be kept strictly confidential.
In the second phase of the process and upon entering into a Non-Disclosure Agreement (NDA), a TechServe advisor will perform an in-depth analysis of all attributes of the business including, but not limited to financials, client profiles, geographic footprint, internal team composition, and service offerings among other factors that impact valuation. A summary report and PowerPoint deck will be prepared which includes an estimated valuation range and supporting analysis.
Depending upon a Seller’s time horizon, Step Three will proceed along one of two different paths. If a Seller is interested in bringing his or her firm to market in the near-term, TechServe will create the documents necessary to market the firm to prospective buyers. These documents include a Teaser—a one-to-two-page overview of the firm without identifying information and a Confidential Information Memorandum (CIM)—a more in-depth overview of the business and its financial position made available to prospective buyers after they have entered into an NDA. If a Seller is not ready to ‘go to market’, TechServe can undertake a ‘readiness to sell’ assessment of the firm. Using industry-specific due diligence items as a guide, a TechServe advisor with deep IT & engineering staffing experience will identify any deficiencies as well as opportunities to enhance enterprise value. The analysis will also include consideration of potential deal structures.
While preserving confidentiality, the TechServe team will reach out to its vast network to market your firm to potential buyers. In addition to expanding the number of potential acquirers who would compete for the opportunity to buy your firm, the TechServe program also shifts most fees to the buyer—a major innovation in the way IT & Engineering Staffing firms are bought and sold. Sellers will not pay any advisory fees beyond the $5,000 for the services in Steps 2 & 3.