Technology and IT businesses in Valencia: buying, selling and valuation

Establishments in programming, consultancy and other computer activities, plus those in information services, according to the INE. Telecommunications, publishing and audiovisual are excluded, and the figure counts premises, not companies.

It usually attracts more buyers if it has recurring income and a product that grows without headcount rising at the same pace. A consultancy depends more on billed hours and on the team. Even so, the final value depends on the profitability and risk of each case.

That the company owns everything developed, that third-party licences are complied with, the quality and documentation of the code, security and dependence on specific people. It is common for the buyer to arrange an independent technical review.

By announcing the transaction at the right moment and, often, with incentives tied to staying on for a period. The buyer will want to meet the key people early, and their willingness to stay can shape the deal.

Software or IT services companies seeking customers, product or talent, industrial groups that want their own digital capabilities, consultancies adding specialities and investors interested in subscription income.

For many buyers what matters is that the team is stable and productive, whether it works in an office or remotely. They will, however, want to know where each person lives, what contract they have and how work is organised, because that affects costs and integration with their own workforce.