World-renowned companies from around the globe, including Cisco, Google, IBM, and Lenovo, are choosing to do business in the great state of North Carolina. If you’re considering entering the flourishing information technology space in North Carolina, you’re likely weighing the benefits of starting vs. buying an IT business in Charlotte, NC. While there’s no right decision, we find that many entrepreneurs prefer purchasing an existing IT business for sale because it allows them to hit the ground running. Not only does an established IT company have a proven business model and existing cash flow, but it also has existing customers, partners, and employees.
HOW TO FIND AN IT BUSINESS FOR SALE IN CHARLOTTE, NC
The easiest way to find your ideal IT business for sale in Charlotte, NC is to work with an experienced business broker. A broker can help you identify what type of IT company you’re interested in– managed services, cloud services, computer repair, VoIP services, software, or data management– as well as fine tune your budget, ideal location, and goals.
In addition to identifying the best business opportunity for you, a broker can help you communicate with the seller, arrange meetings, negotiate a deal, and effectively close a deal.
ASK THESE 5 QUESTIONS BEFORE BUYING AN IT COMPANY IN CHARLOTTE, NC
If you think buying an IT business in Charlotte, NC might be the right path for you, rely on the experts at VR Business Brokers to guide you through the transaction process. Once you’ve found your ideal opportunity, ask the seller these five questions before you sign on the dotted line.
1. WHAT SETS YOUR BUSINESS APART FROM OTHER IT COMPANIES IN CHARLOTTE?
As previously mentioned, there are countless IT companies in the metro Charlotte area and the surrounding cities– some being global powerhouses and others being small businesses serving the Charlotte community. Because Charlotte’s IT space is so competitive, be sure that you’re thinking about how the business in consideration stacks up against its competitors. Ask the seller about the company’s core competencies and consider whether these will continue setting the business apart long-term.
2. HOW IS YOUR IT BUSINESS PERFORMING?
After signing an NDA, you will be provided with financial information and details on the IT business’s performance for sale. These financial reports should help you understand how the IT business is performing, but if you have additional questions, work through your business broker to get answers. This is also an excellent time to ask about seller financing and SBA loans.
3. WHAT IS INCLUDED IN THE SALE OF YOUR IT BUSINESS?
If you’ve determined the business is a viable option based on its financials, you’ll also want to consider what’s included in the sale of the business. Will the transaction be an asset sale or a share sale? Are you buying the company’s IT product line, brand name, real estate, or book of business?
4. HOW DID YOU ARRIVE AT YOUR ASKING PRICE?
One of the most important questions to ask the existing business owner is how they arrived at their asking price. If a third-party business valuation backs the asking price, it is likely a fair asking price. If the seller set the asking price, dig a bit deeper. Often when sellers set their own asking price, emotional attachment to the business clouds their judgment. In these cases, there may be more room for negotiation.
5. WHY ARE YOU SELLING YOUR IT BUSINESS?
Finally, ask the business owner why they are selling the IT business. Common reasons for Charlotte business owners to sell include retirement, new opportunities, illness, partner disputes, and burnout. If the owner mentions they are selling due to financial reasons and declining revenues, it’s important that you ask some additional questions. While the business could certainly turnaround under new ownership, it may be a riskier investment.
To learn more about selling or buying an IT business in Charlotte, NC, contact VR Business Brokers of Charlotte to schedule a consultation. We are the go-to business brokerage firm in the area and can help you get the best deal possible on your ideal IT company.