“Paul J. Farrell, founder of Nehemiah Security, shares valuable insights into the structure of a family fund and preparing your business for a sale,” shares Minneapolis business broker Sam Thompson with M&A firm Transitions In Business. “He talks about the importance of a data room and organizing the data room well before you plan to sell.”

Paul J. Farrell built Nehemiah Security, a software company that helped organizations understand and calculate the risks associated with a cyber-attack.

In just two years, the business grew to around $1.2 in Annual Recurring Revenue (ARR) despite sales cycles of up to nine months. Cyber security software companies can trade for 8-10 times revenue, so when Nehemiah’s financing fell away, Farrell and his wife were willing to cover the company’s burn rate personally.

Then COVID hit, sales cycles ground to a halt, and Farrell became increasingly uncomfortable funding his operating deficit. He decided to sell to ThreatConnect, a cyber security software provider that could sell Nehemiah’s offering to its security-conscious customers.

Lots to dig into in Farrell’s story, including:

  • How to get a family office to invest in your business.
  • How to manage people with more technical skills than you.
  • The role industry conferences play in your journey to sell.
  • The definition of a “Ben Franklin” list.
  • A list of things to do to prepare your company to be sold.

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