For the seller
Data business for sale: what to settle before you call a buyer
Updated
Before a data business goes up for sale, three things decide who will take the call: its size, whether the data is clearly the company's, and whether a filing will be needed.
Size: what the buyers say they look for
STG names the mid-market. Abry invests in middle market companies with recurring revenues, high barriers to competitive entry and high free cash flow. Tritium names companies with $5-75m of revenue in its own focus.
The right to sell the data on
A buyer pays for data the company has the right to sell on. Customer contracts, the privacy notice and any source licences decide that, and a buyer's diligence reads them first.
A licence instead of a sale
If you want to keep the company, its data can be licensed for a term instead. That is the route we act on for the company; for a sale of the whole business we introduce an adviser.