The Tech Edvocate

Top Menu

  • Advertisement
  • Apps
  • Home Page
  • Home Page Five (No Sidebar)
  • Home Page Four
  • Home Page Three
  • Home Page Two
  • Home Tech2
  • Icons [No Sidebar]
  • Left Sidbear Page
  • Lynch Educational Consulting
  • My Account
  • My Speaking Page
  • Newsletter Sign Up Confirmation
  • Newsletter Unsubscription
  • Our Brands
  • Page Example
  • Privacy Policy
  • Protected Content
  • Register
  • Request a Product Review
  • Shop
  • Shortcodes Examples
  • Signup
  • Start Here
    • Governance
    • Careers
    • Contact Us
  • Terms and Conditions
  • The Edvocate
  • The Tech Edvocate Product Guide
  • Topics
  • Write For Us
  • Advertise

Main Menu

  • Start Here
    • Our Brands
    • Governance
      • Lynch Educational Consulting
      • Dr. Lynch’s Personal Website
      • Careers
    • Write For Us
    • The Tech Edvocate Product Guide
    • Contact Us
    • Books
    • Edupedia
    • Post a Job
    • The Edvocate Podcast
    • Terms and Conditions
    • Privacy Policy
  • Topics
    • Assistive Technology
    • Child Development Tech
    • Early Childhood & K-12 EdTech
    • EdTech Futures
    • EdTech News
    • EdTech Policy & Reform
    • EdTech Startups & Businesses
    • Higher Education EdTech
    • Online Learning & eLearning
    • Parent & Family Tech
    • Personalized Learning
    • Product Reviews
  • Advertise
  • Tech Edvocate Awards
  • The Edvocate
  • Pedagogue
  • School Ratings

logo

The Tech Edvocate

  • Start Here
    • Our Brands
    • Governance
      • Lynch Educational Consulting
      • Dr. Lynch’s Personal Website
        • My Speaking Page
      • Careers
    • Write For Us
    • The Tech Edvocate Product Guide
    • Contact Us
    • Books
    • Edupedia
    • Post a Job
    • The Edvocate Podcast
    • Terms and Conditions
    • Privacy Policy
  • Topics
    • Assistive Technology
    • Child Development Tech
    • Early Childhood & K-12 EdTech
    • EdTech Futures
    • EdTech News
    • EdTech Policy & Reform
    • EdTech Startups & Businesses
    • Higher Education EdTech
    • Online Learning & eLearning
    • Parent & Family Tech
    • Personalized Learning
    • Product Reviews
  • Advertise
  • Tech Edvocate Awards
  • The Edvocate
  • Pedagogue
  • School Ratings
  • The Cycle Of Learning To Read: Everything You Need to Know

  • Summer Reading For Your Kids: Everything You Need to Know

  • Analyzing the Research on Autism Spectrum Disorder

  • Kids’ Reading Comprehension Is Worse On Screen

  • How Remote Learning Is Taking A Toll On Teachers

  • What Giving up on a Student Says About a Teacher

  • The Machine Learning-Driven Future Of Learning

  • Developing Fluent And Reflective Reading In Children: Everything You Need to Know

  • Morphology Training Vs. Phonics Instruction: Everything You Need to Know

  • Developing Creative Young Children Who Can Communicate, Collaborate, and Problem-Solve

EdTech Startups & Businesses
Home›EdTech Startups & Businesses›The Process of Selling Your Education/Edtech Company

The Process of Selling Your Education/Edtech Company

By Matthew Lynch
August 16, 2019
0
Spread the love

While there are many reasons why edtech companies fail, there are also a number of reasons for wanting to sell off a successful edtech company. After years of watching you reach one goal after the other, your investors and shareholders may insist on some financial return. Or maybe you established your business to have a good chance of acquisition in the first place. Or maybe you’ve reached the end of your personal and entrepreneurial stamina.

Serial entrepreneur, Anil Hemrajani offers these tips on what to keep in mind should you consider selling your startup.

Before you contact prospective buyers

Hemrajani shares the following wisdom he received from someone along the way, worth repeating here: Operate your company like you’ll own it forever but keep your records like you’ll sell tomorrow. That means keeping your accounting, legal, HR and other business documentation in good order.

Also, make sure that you have professional financial and legal advisors that you can trust to help you navigate the acquisition process. Have ready a pitch deck that contains all the information a buyer might need, covering issues like your product or solution, business model, financials, market, competitors, etc.

Finding a buyer

There is a strategy to finding a buyer and it doesn’t start on the day you decide to sell. It starts with the relationships that you build up along the way. For his startup, Big Universe, half of the prospective buyers came to Hemrajani through personal networking at industry conferences. For Chattypeople founder, Murray Newlands, potential buyers found him through his established credibility as an expert in chatbots, which he established on various platforms.

Finding a buyer can take a long time. When you do come across one, make sure you develop a rapport with one of the executives. That can help to smooth your dealings, advises Hemrajani.

Valuing your company

There are many ways to value a business. Ultimately, the business is worth whatever the owner thinks it’s worth, based on certain criteria. In general, sale prices range between 1X to 3X of revenue, but getting a reliable estimate can be like throwing darts in the dark, says Hemrajani. The value is influenced by things like the proven demand for your product or service, your business model, strategic fit for a buyer, and other factors. Ultimately, it comes down to what a buyer is willing to pay and the prospect of the expected return on investment.

Decide carefully when to sell

The best time to sell is when your growth is on the upswing and not when the company is not doing very well or the market is lagging. It’s important to keep working for the success of your company, to keep innovating as if you have no intention to sell.

Drawing up the contracts

This is a complicated issue that will be handled by your legal advisors. There is no easy template for selling a startup; each situation is unique. It’s going to cost you, but get the best legal advice you can afford.

Due diligence

This is part of the process that will test your patience to the limit. Expect to have at the ready more than 100 different items, ranging from corporate and financial documents to customer demographics and agreements, patents, trademarks, and information on supply chains and suppliers. And much, much more.

Life after the deal has been closed

You have succeeded. You sold your company, now what? A new life with the new owner starts. In the beginning the new owner may let you continue operating reasonably independently, but over time things will become more integrated. Things will change, and that may be difficult to adjust to. Some employees will simply leave.

It’s tough to start a company, and it’s exhilarating but exhausting to grow it. Selling it off might feel like a relief but it’s also the end of something that was important. Allow some time to acknowledge the fact.

Previous Article

Using the Power and Promise of Edtech ...

Next Article

Why E-Textbooks Haven’t Taken Over Schools

Matthew Lynch

Related articles More from author

  • EdTech Startups & BusinessesEducation Leadership

    How to Evaluate if Education Conference Attendance is Paying Off for Your Edtech Company

    June 11, 2019
    By Matthew Lynch
  • EdTech Startups & Businesses

    If You Really Want to Design Useful Edtech, Start with Students

    January 20, 2018
    By Matthew Lynch
  • EdTech Startups & Businesses

    Secrets to Successful Edtech Launches

    April 6, 2020
    By Matthew Lynch
  • EdTech Startups & Businesses

    Ed Tech Companies That I Really Love: Part I

    March 22, 2017
    By Matthew Lynch
  • EdTech Startups & BusinessesFeaturedFreshInfluencersTeachers

    Don’t Get Used: Make Edtech Companies Deliver on Their Promises

    January 21, 2019
    By Matthew Lynch
  • EdTech Startups & Businesses

    Best Practices for Responding to School District’s RFP’s

    December 27, 2017
    By Matthew Lynch

Leave a reply Cancel reply

Search

Login & Registration

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Newsletter

Signup for The Tech Edvocate Newsletter and have the latest in EdTech news and opinion delivered to your email address!

  • Recent

  • Popular

  • Comments

  • The Cycle Of Learning To Read: Everything You Need to Know

    By Matthew Lynch
    February 3, 2023
  • Summer Reading For Your Kids: Everything You Need to Know

    By Matthew Lynch
    February 3, 2023
  • Analyzing the Research on Autism Spectrum Disorder

    By Matthew Lynch
    February 3, 2023
  • Kids’ Reading Comprehension Is Worse On Screen

    By Matthew Lynch
    February 2, 2023
  • How Remote Learning Is Taking A Toll On Teachers

    By Matthew Lynch
    February 2, 2023
  • 7 Ways Technology Is Impacting Modern Education

    By Matthew Lynch
    March 4, 2017
  • 20 Top Virtual Reality Apps that are Changing Education

    By Matthew Lynch
    March 11, 2017
  • Why Mobile Technology Enhances Instruction

    By Matthew Lynch
    December 14, 2016
  • 7 Roles for Artificial Intelligence in Education

    By Matthew Lynch
    May 5, 2018
  • Digital Literacy is the Most Important Lifelong Learning Tool

    By Matthew Lynch
    December 30, 2017
  • Where to Find Dyslexia Support for Adults - Case Training Services | Registered Charity #1051587
    on
    August 2, 2022

    11 Must-Have Apps and Tools for Dyslexic Students

    […] recorders Electronic flashcards ...
  • What Types Of Posts Can You Make In Google Classroom? - The Tech Edvocate - Gossip ...
    on
    July 31, 2022

    How to Integrate Google Classroom with the Power of YouTube

    […] of your posts. ...
  • Answers to Frequently Asked Questions About Google Classroom - The Tech Edvocate - Gossip Buz
    on
    July 31, 2022

    Answers to Frequently Asked Questions About Google Classroom

    […] Answers to Frequently ...
  • 10 Important YouTube Channels For Teachers - Kiiky Wealth
    on
    July 29, 2022

    10 Incredibly Useful YouTube Channels for Teachers

    […] Thetechedvocate.org – 10 Incredibly ...
  • Teaching Learners Digital Content Curation Skills - Fab Lab Connect
    on
    June 30, 2022

    Teaching Learners Digital Content Creation Skills

    […] Read More… […]

EdTech Policy & Reform

  • Curriculum & InstructionEdTech Policy & ReformEducation Leadership

    Why We Should Leave Behind the Cookie-cutter Education

    Spread the loveChange appears to be the only “constant” factor in the educational field. However, what happens when a more significant shift becomes necessary? To provide students with the best ...
  • Adaptive LearningCurriculum & InstructionDigital & Mobile TechnologyDigital Age TeachersEarly Childhood & K-12 EdTechEdTech & InnovationEdTech Policy & ReformInstructional Technology

    Exploring New Ideas: Student-Driven Remote Learning

    Spread the loveRemote learning is taking its toll on our students. They miss the social side of school. Not seeing their classmates or teachers is leading to nervousness, anxiety, and ...
  • Digital & Mobile TechnologyEdTech & InnovationEdTech Policy & Reform

    Implementing Education Technology by Pursuing Technology Education

    Spread the loveTechnology is used for many great things in our world. It’s a powerful tool when used correctly. As such, this powerful tool can be used to transform learning.  ...
  • EdTech Policy & Reform

    How Much Bias Is Okay in Your School?

    Spread the loveThe algorithm has proven itself to be a handy tool when it comes to solving education problems. It’s also not without bias.  You may be wondering how some ...
  • EdTech Policy & ReformFeaturedFresh

    Edtech Should Complement Good Pedagogy, Not Attempt to Replace It

    Spread the loveThe newest generation of edtech is downright amazing; it’s no wonder that various education stakeholders might be a little excited about its potential to transform education. However, edtech ...

EdTech Startups & Businesses

  • EdTech Startups & Businesses

    Trends That Will Help Your EdTech Startup Succeed

    Spread the loveIf you want to thrive in the destiny of learning and self, shorten, tailor, and gamify. The bulk of EdTech businesses believes that digitizing conventional learning methods and ...
  • EdTech Startups & Businesses

    How to Sell Your Edtech Product

    Spread the loveDevelop a profile of the perfect consumer, target clients that meet that description, and plan on a long sales cycle. Selling to schools takes a different sales process ...
  • EdTech Startups & Businesses

    Edtech Companies Can Learn What Not to Do From Delta Airlines

    Spread the loveIt seems that edtech companies still have a lot to learn about their business models and practices. With that being said, there is a lot they can learn ...
  • Digital LeadershipEdTech Startups & BusinessesProduct Reviews

    Product Review of Collegix

    Spread the love This is a comprehensive ERP solution for colleges and universities that provides modular, totally integrated learners services, finance, HR, and advancement. Collegix provides online and offline workarounds ...
  • Early Childhood & K-12 EdTechEdTech Startups & BusinessesProduct Reviews

    Product Review of Discovery Education

    Spread the love Discovery Education is a big player in EdTech. The company has established itself as the leading provider of digital curriculum resources, digital content, and professional development for ...

Digital Equity

  • Digital Equity

    How to Create an Equitable Digital Culture in K–12

    Spread the loveDigital equity is vital in our schools. After all, it can help close the achievement gap. However, there is one prevalent problem concerning digital equity. That is the problem ...
  • Digital & Mobile TechnologyDigital EquityDigital Literacy

    Teaching Learners Digital Content Creation Skills

    Spread the loveContent curation is nothing new and has always been a coveted skill. It has been this way for hundreds of years — think of art galleries, museums, or ...
  • Digital & Mobile TechnologyDigital EquityEdTech & Innovation

    Promoting Online Access With Hotspots, Laptops, and Planning

    Spread the loveWhen becoming a leader in the field of education, it is important to consider equity. Some students may not have access to devices or the internet from their ...
  • Digital EquityDigital Leadership

    How Can You Assess the Tech Needs of Your Students Outside of School?

    Spread the loveToday, I received an email from the middle school principal in Los Angeles. She explained to me that the school that she ran was in one of the ...
  • Digital Equity

    It Is Time for the Edtech Industry to Stop Denying Its Equity and Race Problem

    Spread the loveThe EdTech industry is dominated by white employees, white leaders, and white entrepreneurs. If you doubt this statement, just attend an Edtech conference. Admittedly, educators and others don’t ...

EdTech Futures

  • EdTech Futures

    The IT Investments Securing the Future of Higher Education

    Spread the loveThe future of higher education still seems uncertain after the massive disruptions of the last two years. Universities and colleges are struggling with budget difficulties amid cybersecurity threats. ...
  • Adaptive LearningAssistive TechnologyEdTech FuturesInstructional TechnologyTeachers

    Will AI Replace Teachers?

    Spread the loveThrough the years, robots have taken over many jobs. First, they replaced horses and wagons and horses and plows, then they started to replace people. A few examples ...
  • EdTech FuturesHigher EducationHigher Education EdTechUncategorized

    The Future of Higher Education Must Avoid Returning to the Past

    Spread the loveColleges and universities can make higher education safer, smarter, and more accessible through automation and collaboration technologies – if they commit to it. Author: John Hulen, Director of ...
  • EdTech FuturesOnline Learning & eLearning

    IT Trends To Watch As Higher Education Moves Into a New Decade

    Spread the loveEdtech couldn’t have hoped for a better launch into the new decade than the push the industry received from COVID-19. Even the most tech-resistant institutions and individuals have ...
  • EdTech Futures

    4 Emerging EdTech Trends in 2022

    Spread the loveCovid-19 has not only changed education as we know it, but it has forced education technology (EdTech) to up its game. EdTech has been crucial since the start of this ...

About Us

Since technology is not going anywhere and does more good than harm, adapting is the best course of action. That is where The Tech Edvocate comes in. We plan to cover the PreK-12 and Higher Education EdTech sectors and provide our readers with the latest news and opinion on the subject. From time to time, I will invite other voices to weigh in on important issues in EdTech. We hope to provide a well-rounded, multi-faceted look at the past, present, the future of EdTech in the US and internationally.

We started this journey back in June 2016, and we plan to continue it for many more years to come. I hope that you will join us in this discussion of the past, present and future of EdTech and lend your own insight to the issues that are discussed.

Newsletter

Signup for The Tech Edvocate Newsletter and have the latest in EdTech news and opinion delivered to your email address!

Contact Us

The Tech Edvocate
5322 Markel Road, Suite 104
Richmond, VA 23230
(601) 630-5238
[email protected]

Follow us

Copyright © 2023 Matthew Lynch. All rights reserved.