How Tech CEOs Achieved Successful Exits — and Their Tips for Selling an IT Services Company
We’ve talked about investors and buyers in the latest releases, but what about the sellers? For many, going through an M&A process is an emotional rollercoaster, as the stakes are high. The journey comes with its share of ups and downs, along with plenty of soul-searching—all of which can be smoothed out if handled the right way, with the right team. While each seller’s journey is unique, there’s plenty of common ground between their stories and valuable lessons to learn along the way.
Entrepreneurs with successful exits shared their experiences during the Sellers Panel at the Growth and Exit Strategies (GXS) for IT Services Companies conference, hosted by the World Financial Symposiums (WFS). Here’s what the panelists had to say.
What Motivates Successful Entrepreneurs Seeking an Exit?
Jim Falkanger, former managing partner of CCG and founding partner of EleVia, considered selling CCG for several months before ultimately deciding to go to market. His main motivation stemmed from one of his partners, who was eager to sell the business. Over time, Jim and his other partner came to the same conclusion, realizing it was the right moment to exit. “We started CCG in 2001, partnered with a large ERP publisher, and had a good run. I won’t say we were tired, but the space was mature, and we thought it was good timing, which later proved to be true.”
He recalls the process with EleVia fondly, describing his exit as a very fulfilling experience, largely because he was surrounded by the right people at the right time. Just 18 months later, he and his partner returned to the market with their next venture, the software reselling company CCG.
For Jaroslaw Lukasiewicz former CEO and co-founder of Vetasi — a global leader in enterprise asset management consulting — the journey looked different. A serial entrepreneur with prior experience selling a company in the Polish market, Jaroslaw and his partners asked themselves key questions: Can we scale further on our own? Can we meet customer expectations and expand internationally?
This marked a turning point for Jaroslaw and his team. After a meeting with all the partners, they concluded it was time to either sell or bring in the right financial or strategic partner to support further growth.
How Buyer Intent Shapes Better Outcomes for Sellers in M&A
Understanding seller motivation is one thing, but uncovering a buyer’s true intent proved to be just as important for both Jaroslaw and Jim. Each spoke about the expectations and impressions of those who eventually acquired their businesses.
For Vetasi, buyers were primarily drawn to its international footprint. The company stood out as a global leader in delivering services around IBM Maximo and had earned strong recognition across Europe and Africa. This made it an attractive target for firms looking to consolidate in those markets.
Jim’s experience unfolded differently. Looking back to 2008, he and his partners realized they needed to separate EleVia from CCG to achieve successful exits. “We knew enough to realize that the software reseller practice had one type of exit, while the software company had another,” he explained. This strategic decision allowed the businesses to attract the right buyers.
The timing was also consistent: both operations took roughly a year to close. Jim attributes the smoother process to the guidance of an experienced M&A advisor, underscoring how critical the right support can be.
Placing Your Trust in the Right People During the M&A Process
Jaroslaw references the most difficult aspect of the whole process: managing the company while running the sale at the same time. At times, it felt like living a double life, with due diligence operations taking place “in the middle of the night” and client meetings the next morning. He kept a very tight circle, not only to handle operations but also to avoid information leaks.
As Jaroslaw explained, getting the right people is key—an opinion shared by Jim, who also relied on the same advisor, Corum, for the M&A process. The criteria were simple: they needed a firm that worked with technology software companies and had experience in the architectural engineering space. Both founders relied heavily on their senior leadership, with Jaroslaw being particularly thankful for their support and teamwork capabilities.
Referring to the emotional side of the M&A process, particularly due diligence, Jaroslaw said: “The process was emotionally draining at times. We were very close to the end and suddenly the buyer sent another 20 questions, so it took two more weeks.” With CCG, Jim relied heavily on their chosen M&A advisory firm, offloading much of the work to them, which freed up time for others to assist him and his partners with the operation. “So, that was probably the largest component in readying ourselves for due diligence.”
Priceless Advice from Entrepreneurs Who Sold Their IT Services Company
Being on the selling side can be draining, but it can also be incredibly fulfilling and exciting when done right. Both panelists shared invaluable advice for CEOs and founders who might find themselves in the middle of an M&A process, entering due diligence, or simply considering an exit.
Jim’s first piece of advice is to pick a trustworthy M&A advisory firm, one that knows the space, the market, and, most importantly, understands the client’s business model. “One of the things that I really appreciated with our advisor is he was able to quickly grasp our business model, the verbiage, nomenclature, and the industry speed. That was critical when we started the due diligence and had meetings with the private equity firm,” he said.
Sellers need to be objective-driven and leave the harder aspects of the transaction to professionals who have handled this kind of operation before. Jim stresses the importance of letting real experts take the wheel, as many inexperienced sellers think they can handle the process without proper guidance. “We're so close to the business as CEOs, managing partners, and the like, that sometimes you need to take a step back and just recognize that other experts can step in and advise you on where you're at with the process.” The second time he and his team went to market, they were much more prepared emotionally.
For Jaroslaw, timing and preparation were the defining factors. Sellers should start thinking about an exit before they are ready. “Even if you are not planning to sell, operate like you might,” he said. “You can always be prepared, but the market situation and the offer you receive, along with momentum, are critical aspects.” Both he and Jim also emphasized the importance of consistently tidying up financials, which, in turn, helps sellers better understand what motivates buyers.
Finally, Jaroslaw recalls his time working with Corum, and the synergy he and his team found with Corum’s experts. “Corum was the right fit, considering the size of our company. Of course, you can go to other competitors, but that should be a feat considering the size of our business. Corum’s competence and experience proved to be perfect for us.”
In the end, both sellers were highly satisfied with their processes, which at times exceeded expectations. Their success stories stand as a testament to what well-planned M&A can achieve for tech CEOs, and everyone involved. Jaroslaw said: “I advise every CEO and every founder to have the right M&A advisor.
WFS is hosting an upcoming Growth & Exit Strategies online conference “Scaling & Selling in the AI Era”, on November 6th. REGISTER HERE and hear from speakers representing KPMG, Astra Capital Management, Rockwell Automation, Expert DOJO, Butterfly Ventures, Corum Group, and more!
All details available at wfs.com/conferences.