Tech bank professional Paul Inouye explains how to prepare your software business for an upcoming sale


Paul Inouye says hiring a veteran advisor, being proactive in the process, aligning key shareholders, and demonstrating strong company fundamentals are all essential.

PORT VALLEY, CA / ACCESSWIRE / September 2, 2021 / With over three decades of technological banking experience, the businessman Paul Inouye provides an overview of the best way to prepare for a successful merger and acquisition transaction. His recent conversation provided insight into the processes that software and SAAS companies adhere to in order to best ensure a successful M&A sale.

“SaaS and software companies have increasingly become targets for strategic and financial buyers who are paying extra for high growth companies. Paul Inouye says, “For owners of software startups, this is an exciting and stressful process. Preparing for a merger contributes to the success of the process. In many cases, it’s important to have a slow down mentality in order to hurry.

Paul Inouye says there are several things to consider as a SaaS or software business preparing for a sale or merger.

Hire an experienced advisor: It is essential to work with an advisor who has domain knowledge of the technology software industry. This advisor will be involved in the thousand decisions that occur between kick off and close and must be a trusted and experienced veteran. He will also need insight into strategic and financial buyers that will help him know how to best position your business with them.

Get your things in order: A merger is already complex but can be more complicated if you are not fully prepared. While it might go without saying, Inouye says it’s essential to have clear and well-documented financial data, well-controlled projected future numbers, and a well-organized sales pipeline and visibility. Customer contracts and legal proceedings must also be in order.

Make sure your main components are aligned: Paul Inouye explains that it is essential that key shareholders and board members are aligned with the process, its goals and expectations. You also want to make sure that the appropriate management team is informed and encouraged to participate in the transaction. Finally, it is important that key shareholders are kept informed of the potential transaction and the appropriate involvement.

Evaluate the alignment of the M&A market and business dynamics: For a successful merger, it is ideal that you start a process both in a strong M&A market and your own business is doing well and showing robust growth. Companies are appreciated for transmitting development, so it is extremely important to have strong commercial visibility that is both defensible and well articulated.

Be positive and proactive in positioning the company: “As a business leader, your approach to the merger rubs off on everyone else involved,” warns Inouye. “It’s also important to take a hands-on approach to the process, including being heavily involved in your positioning, articulating your value proposition, competitive advantages and business strengths, and working closely with your advisor.

Paul Inouye has worked for over 30 years in the West Coast tech banking industry. He has a solid knowledge of the field, in-depth knowledge of strategic and financial buyers, in-depth negotiation skills and in-depth knowledge of the merger and acquisition process. During my career, I have focused on M&A transactions for software and internet technology companies, and like many of my clients, I myself am an entrepreneur running my own merger shop and acquisitions. I understand how difficult it is to grow a successful business, so I am very motivated to make sure I get positive results for my clients, who have spent many years working hard to build great businesses.


Paul Inouye
West Hills Partners
(415) 847-6364

THE SOURCE: Paul Inouye

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