Technology company ABCs have characteristics that distinguish them from retail, manufacturing, or service business ABCs. The asset mix — heavy on intangibles, light on physical property — requires an assignee with sector-specific experience.
Tech-Specific Issues
Technology ABCs typically involve: source code and software licenses (which require careful handling of third-party dependencies), customer data (subject to privacy law constraints), SaaS contracts with recurring revenue (highly valuable to acquirers), cloud infrastructure (which must be transitioned quickly to avoid runaway costs), and employee equity (which usually becomes worthless but creates employee relations issues).
Speed is even more critical in tech ABCs. Technology businesses lose value faster than physical businesses during insolvency. Customers migrate to alternatives and employees leave for stable employers. Assignees who move within days — not weeks — of the assignment to assess going-concern value and reach out to potential acquirers produce dramatically better outcomes.
The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
Leave a comment