IT & Digital Experts

Sell IT Company – Successful Succession for Your IT Business

Looking to sell your IT company and find the right successor? As M&A advisors with a digital focus, we find the buyer who will take over your team and continue your life's work.

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Sell your IT company – for many founders and managing directors, one of the most important decisions of their career. Over the years, you've built a team, nurtured customer relationships, and developed technical expertise. Now you're looking for a successor who will preserve and develop these values.

The IT market offers good conditions for a successful exit. Skills shortages and consolidation pressure are driving demand for established IT service providers. Strategic buyers, Private Equity, and qualified successors are actively seeking profitable IT companies with stable customer relationships.

Our Focus

IT Business Types We Sell

From digital agencies to managed service providers – we understand the specifics of each IT business model and the right buyers for them.

Managed Service Providers

Classic IT service providers focused on infrastructure, managed services, and support.

  • Managed Services & Maintenance
  • Cloud Migration & Hosting
  • IT Support & Helpdesk

Digital Agencies

Creative and technology agencies focused on digital products and marketing.

  • Web Development & Apps
  • UX/UI Design
  • Digital Marketing

Software Developers

Specialized development service providers for custom software solutions.

  • Custom Development
  • ERP Implementation
  • System Integration

Valuation

Sell IT Company: What Is Your Business Worth?

EBIT-Based Valuation for IT Service Providers

When selling your IT company, valuation is typically based on EBIT (Earnings Before Interest and Taxes). For owner-operated companies, SDE (Seller's Discretionary Earnings) is often used, which also accounts for the owner's salary.

These factors particularly influence the value of your IT company:

✓ Employees: Qualifications, turnover, key persons
✓ Customer Structure: Recurring revenue, contracts, dependencies
✓ Owner Dependency: Delegated management increases value
✓ Specialization: Niche focus can achieve premium multiples
✓ Recurring Revenue: Managed services & maintenance contracts
Typical Multiple
4-6x
EBIT / Adjusted Operating Profit
IT companies with high recurring revenue share, low owner dependency, and specialized know-how achieve premium multiples.

Buyer Types

Who Buys IT Companies and Agencies?

For IT succession, various buyer types come into question – depending on the size and focus of your company.

Strategic Buyers

Larger IT companies or MSPs looking to expand regionally or extend their service portfolio. Often the highest prices through synergies in personnel and customers.

Private Equity

PE funds focused on IT services are actively building platforms and seeking add-on acquisitions. Particularly interesting for companies with €500k+ EBIT.

Management Buy-In (MBI)

Experienced IT managers looking to run their own company. Many can be found in the BuySellGrow Community – Germany's largest buyer community for acquisitions.

Internal Succession (MBO)

Long-term employees or executives who want to take over the company. Often the best solution for continuity with team and customers.

Key Considerations

What's Particularly Important When Selling an IT Company

IT companies have specific value drivers. Clarify these points before selling:

✓
Employee Retention: Employment contracts, notice periods, identify key persons
✓
Customer Contracts: Terms, termination clauses, change-of-control provisions
✓
IP & Licenses: Proprietary developments, software used, license agreements
✓
Documentation: Update processes, systems, customer documentation
✓
Owner Dependency: Delegate tasks, build second management tier
✓
Recurring Revenue: Expand maintenance contracts and managed services

💡 Tip: With Dragonflip Exit Readiness, you can systematically prepare your IT company for sale over 6-12 months and sustainably increase its value.

FAQ

Frequently Asked Questions: Sell IT Company

How is an IT company valued? +
IT companies are typically valued at a multiple of 4-6x EBIT. The exact value depends on factors such as employee structure, customer contracts, recurring revenue, and owner dependency. Use our calculator for an initial estimate.
What happens to my employees after the sale? +
In most cases, all employees are taken over by the buyer. Employment contracts transfer to the new owner through business transfer regulations. Good buyers know that employees are the most important asset.
How long does it take to sell an IT company? +
The typical sales process takes 6-9 months. For IT companies, due diligence is often more extensive (employees, customer contracts, IP). Good preparation can accelerate the process.
Do I have to stay with the company after the sale? +
A transition period of 6-12 months is common to transfer know-how and hand over customer relationships. The exact duration and compensation is regulated in the purchase agreement.
What size does my IT company need to be to sell? +
Generally from about €150,000 annual profit. For Private Equity, typically at least €500,000 EBIT is interesting. Smaller companies often find successors through MBI candidates from the BuySellGrow Community.

Ready for IT Succession?

Find out in a free initial consultation what your IT company is worth and which buyers are the right fit.

Free Consultation Calculate Company Value