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For many entrepreneurs, technology based companies or healthcare companies, the answer to that question is a resounding, NO! There is an exception to this with the rapid rise of the new economy, new media, highly scaleable companies like Google, YouTube, Ebay, PayPal, and MySpace.
In their case, their prospective customers highly value their newness, their breaking the mold, their non-establishment approach. They are viewed as doing what they do far better than the technology establishment stalwarts. The notable exception to this is Apple who has been able to transcend old establishment and be accepted as both old and new economy.
But I digress. Back to topic. Most companies that sell to other companies, or B2B companies are evaluated by their potential customers in a traditional risk reward analysis. Or using computer terminology, their buying decisions are made using a legacy system. It was once said that no one ever got fired for making an IBM decision.
Let's look at this legacy buying model and see exactly why your company's sales do not match the elegance of your solution.
David Kauppi and James Brennan are principals with Mid Market Capital, Inc. MMC is a private M&A Advisory firm specializing in providing corporate finance and intermediary services to entrepreneurs and middle market corporate clients in healthcare and information technology. The firm counsels clients in the areas of mergers, acquisitions and divestitures, private placements of debt and equity, valuations, corporate growth and turnarounds. Dave began his high tech Mergers and Acquisitions practice after a twenty-year career within the information technology industry. Jim brings a broad background including telephony, information technology and healthcare.
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