The Process of Selling your Company
Over the years CyberLynk has learned alot about how to make the acquisition process simple for both the seller and buyer. The seller has worked very hard to build and grow their company to what it is today. With CyberLynk being founded in 1995 we understand what the seller has gone through to grow the business by sacrificing vacations, family time and the financial obligations that were required to get to this point..
CyberLynk works very hard to make the selling and acquisition process very simple:
- CyberLynk and seller will sign a Mutual Non Disclosure Agreement (MNDA): This covers both the seller and CyberLynk's interests to keep the details confidential.
- CyberLynk will send a detailed listing of questions related to the sellers hosting company. The answers to these questions will be used for determining the acquisition price. This part of the process can take a few days if the seller needs to coordinate with other employee's for answers. Once our initial set of questions is responded to we might have a few follow up questions.
- CyberLynk will then request access to the sellers billing or for detailed reports showing revenue, signups, terminations, forecasted revenue, etc. This part sounds like alot of work but if your using a billing package like WHMCS its very simple.
- CyberLynk will now determine if this acquisition is worth moving forward with. If CyberLynk see's value in your company we will provide a letter of intent with the purchase price and any terms listed. Normally our acquisitions are all cash upfront upon closing.
- If the seller accepts the offer, CyberLynk will generate an Asset Purchase Agreement. Our Asset Purchase Agreement is a template that we use for every acquisition and is modified slightly each time to account for minor changes from acquisition to acquisition.
- The seller then has time to review the agreement and discuss any modification that need to be made. Once approved the seller will sign two copies and send them to CyberLynk. CyberLynk will then sign one copy and return it to the seller for their records.
- As of the closing date the seller will receive payment via escrow.com, cashiers check or wire transfer. The seller will then transfer ownership of all customers, servers, service accounts, etc over to CyberLynk. The majority of these items will be listed in an exhibit within the purchase agreement.
- As part of the agreement the seller will make themselves available for 2-3 months after the acquisition via phone or email. While our engineers are very knowledgeable from time to time we encounter a few questions due to special configurations.
- After the sale is completed CyberLynk will contact every customer via email with a notice that CyberLynk has acquired the hosting company along with notices regarding any migrations or upgrades in service they may be receiving as part of the acquisition.
The process detailed above is obviously a very high level look at our acquisition process. Depending on the size of your company the process from initial discussions to signing the agreement can take a few days to a month. Normally any discussions that go past a month are not a good fit for either company.