Established businesses often have an edge — with legal matters in check, solid tech infrastructure, and well-documented finances. But that doesn’t mean younger companies can’t attract buyers. It just takes a more focused effort.
Here are my key takeaways when it comes to preparing a business for sale:
That’s exactly what you shouldn’t do.
While it might be tempting to be the indispensable founder, that’s the opposite of what buyers want to see. A business that runs independently of its founder is far more attractive to potential buyers.
Here’s how to get there:
Define roles and responsibilities: Make sure your team knows who’s responsible for what. What happens if you step away?
Build a strong team: Train your key employees to take ownership of their domains. Buyers love businesses where the team knows what they’re doing.
Avoid key-person risk: Consider retention incentives to ensure your top people stay post-acquisition. Bonus programs or stock options can make all the difference.
Plan for succession: Every key team member should have a backup – someone already learning under them, ready to step in when needed.
Every buyer. That’s who.
Theory and strategy may not seem sexy, but they’re exactly what buyers want to see. If you can present a clear plan for how your business creates value, you're already ahead of the game.
Here’s what to do:
Spell out your strategy: What makes your product unique? How does your tech work? Where do you see growth opportunities?
Put it in context: Even a good old SWOT analysis has value. Use it to highlight your strengths, weaknesses, opportunities, and threats — and how you’re addressing them.
Be transparent about risks: Whether it’s competition, tech challenges, or market shifts, be upfront about what could go wrong.
Map out scenarios: Show how you’d respond in situations like an economic downturn or the arrival of a major competitor. This proves you’ve thought things through.
Think like a buyer: What would make you nervous as an investor? And how can you ease that concern?
Document the future: Create a realistic growth plan that shows how the business can thrive under new ownership. Buyers love clarity and forward vision.
Especially when dealing in cash.
While trust and a firm handshake go a long way, they’re not enough when selling your business. Vague agreements lead to confusion and endless back-and-forth. No buyer wants that.
Here’s what to focus on:
Get contracts in order: Make sure all employment agreements, supplier deals, and partnerships are properly documented and up to date. No one wants to inherit a business full of loose ends.
Include expiry dates: Ensure contracts can be renegotiated at reasonable intervals. Flexibility is key and removes hidden liabilities.
Work with professionals: Lawyers and accountants may be expensive, but not having them can cost even more. Get expert help to keep your paperwork airtight — and keep it that way.
What many don’t realize is that a company’s value often lies in what it owns — what it has built from scratch.
Legal clarity around intellectual property is one of the first things potential buyers will look into. If you don’t have a clear picture of what your business actually owns, things can get expensive fast. That’s why it’s vital to review everything from copyrights to your codebase.
Here’s where to start:
In-house code vs. third-party software: If your product relies on software, make sure you know what’s developed internally and what’s based on open source or third-party licenses. Stay compliant and document it.
Copyright and IP ownership: Have you secured all rights to your design, content, and codebase? If freelancers or former employees contributed, make sure clear agreements are in place assigning ownership to your business.
Trademarks and patents: If you’ve built a unique product, brand, or design, consider registering it as a trademark or patent. It increases your company’s value and protects against copycats.
Identify hidden risks: Have you ever used images, text, or code without proper licensing? These could become legal landmines during due diligence. Clean things up before it’s too late.
In my experience, no matter how much you prepare, you’ll never tick every box for every buyer. And that’s okay. It’s not about being perfect — it’s about showing that you’ve put real thought into your business and steered it in a clear direction.
Remember: If you do this right, the sale won’t just be a transaction. It’ll be a chapter you can look back on with pride.
Thinking of selling but not quite ready? We’ve created a guide with key questions and practical advice to help you shape your exit strategy — so you’re fully prepared when the time comes.
Team pensopay
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