How to develop my company and then sell it?
Three technology entrepreneurs sold their company in the middle of the pandemic and are now listed on the American stock exchange. Álvaro Flores, CEO of Fénix Consulting and commercial manager of this alliance, tells us about this success story. How to sell my company?
Arkavia Netowrks case sold to Cerberus Sentinel
Arkavia was founded in January 2010 by David Alfaro, Camilo Garrido and Roberto Arriagada; engineers with various specializations who decided to start their own cybersecurity business, with the clear vision of a growing need for related services.
Their experience and drive has allowed them to successfully face the diverse scenarios that have arisen over time, achieving growth and becoming a reference in the market. Thanks to this development and their positioning in the market, they sold their company and are now preparing to expand in South America.
How is such a leap achieved? How to sell my company?
We talked to Álvaro Flores, CEO of Fénix Consulting. Director and business consultant, he has been dedicated for more than 20 years to organizational consulting and financial advisory services for entrepreneurs, to develop businesses, support them and accompany them in their growth process, including
the eventual sale of the same. In this case, it has been accompanying this technology company in its management committee for eight years, managing to activate the opportunity of its sale and materialize it in a joint work; on this occasion with a Chilean-American team with 1stPMG and AbderaCapital due to the technological specialization of the company.
Basic requirements to sell a company
Essentially, the creation of a culture that allows the creation of value beyond the initial enthusiasm and the natural talents of its owners; that is, the creation of an organizational structure that transforms that initial “project” into a real company with rules, guidelines, procedures and transfer of value to employees and end customers. It’s not just about selling, you have to create that intergovernmental inter no that allows the business to sustain itself despite crises and expansions.
How to achieve the connection between seller and buyer?
How to achieve a connection between seller and buyer? To achieve this, there must be relationships of trust built up over the years. It is a gradual construction, which allows to have a worldwide network of contacts that allows to establish the right channels at the right time. “This network, in our case, is international. With access to financial boutiques in the main markets where they are always looking for opportunities, not only in our country but in the region. Once interest is established after a presentation, the process is activated,” says Alvaro Flores, CEO of Fénix Consulting.
When to think about selling a company?
There are several “triggers” that activate a sale, among them, personal decisions of the owners, such as the need for a change after many years, the family’s transcendence in the organization, the simple fatigue of the partners and/or growth beyond local banking policies, among others. The latter is very common when opportunities start to grow, business is in sight and, suddenly, the classic question arises: where do we get the resources for this business?
As the company grows as an SME, it gains access to SME financing. “It’s simple, we created this armored structure with financial intelligence. However, when we begin to access new business leagues, there comes the anguish of having the capabilities and not having access to financial support; then private instruments arise and among them is the option of selling or merging the company,” says the CEO of Fénix.
Each company has its own stage to grow, consolidate and eventually transform itself through its sale. It is necessary to evaluate the stage, its maturity and build it if necessary.
Through the process of sale or merger of the company, the owners or shareholders can achieve the dream of growing and obtaining a well-deserved patrimonial wealth, which fulfills their expectations of years of personal and family effort.