Key Recommendations Before Selling Your Software Company

Selling a software company is one of the most meaningful decisions a founder makes. The process can unlock opportunity, accelerate growth, and secure the future of the team and product you’ve built. At Solen Software Group, we’ve supported many founders through this transition. The guidance below reflects the principles we consistently see drive better outcomes, smoother processes, and stronger long-term partnerships.

Start early and treat the sale as a process

Many owners view the sale date as the finish line. In reality, the most successful exits begin well before a transaction officially starts.

We encourage founders to treat preparation as a strategic phase that begins early. That runway allows you to tighten operations, stabilize your recurring base, clean up contracts, and resolve issues that could slow or limit buyer interest. Early preparation compounds value.

Strengthen your financial and operational foundation

Predictability is what buyers reward. Growth matters, but strong fundamentals matter more. At Solen, we recommend that founders:

• Maintain consistent, audited or quality-reviewed financials
• Prioritize recurring revenue streams (subscription, maintenance) over one-off projects
• Give clarity on customer retention: how long clients stay, renewal patterns, and the strength of your relationships.
• Document key processes: onboarding, renewals, product development, support

These elements reduce perceived risk and support stronger valuation conversations.

Define a clear story and growth narrative

When we evaluate opportunities, we look for a clear and grounded narrative about how the business can be elevated. Buyers want to understand not only where the business is today, but where it can go with the right partner.

Founders should be able to articulate:

• The problem your software solves
• Who you serve and why they stay
• Your natural growth levers (new markets, expansion, upsell)
• How the business scales post-acquisition

A strong story gives buyers confidence in the future, not just the present.

Understand your buyer and prepare accordingly

Different buyers think differently. Strategic acquirers may prioritize synergy. Financial sponsors may focus on multiple expansion. Some prioritize speed; others prioritize efficiency.

At Solen, we operate as a long-term buyer. We look for companies that value autonomy, durable customer relationships, and shared growth. We help founders prepare their business for a partner who will stay invested well beyond the close. Alignment matters, and clarity on buyer type helps shape both process and expectations.

Address risks early and directly

Unmanaged risk can slow a deal or reduce value. Technical debt, customer concentration, unclear IP ownership, and inconsistent contract terms are common friction points.

Before entering a process, review these areas through a buyer’s lens. Identify gaps, document fixes, and mitigate what you can. The upfront effort often pays for itself through smoother diligence and stronger negotiating position.

Set realistic expectations around timing and structure

Some sellers expect a quick process and full cash upfront. In reality, mid-market software transactions usually take time to get right and often involve a mix of upfront payment, holdbacks, and earn-outs.

We encourage founders to understand likely structures early and build negotiation strategies around them. Clear expectations help prevent surprises and reduce stress as negotiations progress.

Maintain momentum while the deal is underway

Once an offer arrives, it can be tempting to shift focus. But performance dips during a sale process can erode value quickly.

We advise founders to sustain operational momentum: meet quarterly targets, maintain customer relationships, and keep the pipeline healthy. Demonstrating consistency gives buyers confidence and keeps the deal on track.

Plan for life after the sale

A sale is not just a financial event. It is a transition for you, your team, and your customers. Most founders remain involved for some time after closing.

We encourage honest reflection:

• What role do you want post-close?
• What level of involvement feels right?
• What does the next chapter look like personally and professionally?

Clarity here strengthens negotiations and leads to a smoother handoff.

In summary

A strong exit is built long before an LOI. Preparation, storytelling, operational rigor, and risk mitigation all shape the outcome. At Solen, we help founders navigate this journey with clarity, care, and long-term alignment.

When you’re ready to explore what a transition might look like, our team is here to walk through it with you.