Do you own a Technology Business in California?

The best time to sell is when your recurring revenue is stable, your technical team isn't going anywhere, and the business doesn't depend entirely on you to maintain key client relationships or deliver the product. The tech M&A market is active, with PE platforms and strategic acquirers aggressively pursuing businesses with defensible niches, recurring revenue, and strong margins. Owners who prepare their exit in advance consistently get better outcomes.

Most technology transactions take 6 to 12 months from engagement to close. Deals with complex IP, real estate, or SaaS components can take longer due to the additional due diligence involved. The businesses that close fastest are well-documented, have clean financials, and are operationally prepared before they go to market.

Your customer database, proprietary technology, and key contracts are among the most sensitive assets in your business — and we treat them that way. That information is never shared during the marketing process. It is only released to a single buyer, after an offer has been accepted and the deal has entered due diligence. To learn more about how we control the flow of confidential information, see our Information Release Timeline

IP is often the most valuable asset in a technology deal and buyers scrutinize it carefully. They want to understand what is owned versus licensed, whether the IP is documented and protectable, and whether there are any outstanding disputes or encumbrances. Clean, well-documented IP with clear ownership significantly supports a higher valuation. If your IP documentation is informal or incomplete, it's worth addressing before you go to market.

Key person risk is one of the most common concerns buyers raise in tech deals. If your lead developer, systems architect, or technical director is the only one who understands your product or systems, buyers will price that risk in — through lower multiples, longer earnouts, or retention-based deal structures. The best thing you can do in advance of a sale is cross-train, document, and build a team that doesn't have a single point of failure.

These are valued very differently. Recurring revenue — contracts, subscriptions, managed service agreements — is far more predictable and commands a significantly higher multiple than project-based or one-time revenue. If you have a mix of both, buyers will often value each component separately and weight the recurring portion more heavily. Formalizing informal recurring relationships into written contracts before you go to market can meaningfully change your outcome.

It depends on the type and size. Managed IT and services businesses attract both experienced operators and PE-backed roll-up platforms that are actively consolidating the space. Specialty hardware and infrastructure businesses attract strategic acquirers looking to expand capabilities — as we saw with Priority Computer & Networking being acquired by an IT services firm to complement their SaaS platform. Niche technology businesses with proprietary processes attract buyers who understand the defensibility of what's been built. CBA maintains active relationships across all of these buyer categories.

It's worth considering but comes with real tradeoffs. Internal buyers rarely have the capital to close without seller financing or SBA debt — which means you're carrying more risk and often accepting a lower price than the open market would deliver. The right move is to run a proper competitive process first and see what the market actually offers before committing to an inside deal. Learn how our confidential auction process works.