Define exactly what a buyer would acquire.
“Sell my startup” can describe several different transactions. A buyer might acquire the company, a product, or a defined collection of software assets. Start by separating what you own from what depends on third parties.
- Product & technology
- Source code, architecture, models, integrations, infrastructure, and technical documentation.
- Intellectual property
- Assigned development work, owned data, brand assets, domains, patents, and applicable rights.
- Commercial relationships
- Customers, recurring revenue, contracts, distribution relationships, and support obligations.
- People & transition
- Founder involvement, team continuity, operational knowledge, and a workable handover.
For a revenue-generating SaaS company, customers and recurring revenue may be central to the acquisition case. For a pre-revenue software or AI asset, the case may depend more heavily on differentiated technology, ownership, and the development time a buyer could save.
Write a one-page inventory: what transfers, who owns each part, what requires consent, and what the buyer would need to operate it after closing.
Identify who has a reason to buy.
A large company’s budget tells you very little about its appetite for your product. Look for a specific connection between your capability and a buyer’s priorities: an adjacent product, a customer segment, an integration gap, or a capability already on its roadmap.
A useful buyer list explains why each company belongs on it. Identify a likely product or business sponsor as well as the corporate development contact. The internal case needs someone who can explain why the acquisition matters.
Illustrative buyer thesis
“This product could help an established workflow platform launch a capability its customers already need, supported by a working integration and a clear transfer plan.”An example of the reasoning to establish. Validate each claim with evidence specific to the product and prospective buyer.
Build a short, evidence-led shortlist.
For each prospective acquirer, record the product connection, evidence of a relevant priority, likely internal sponsor, integration requirements, and reasons the buyer might prefer to build. That last question strengthens your preparation.
Prepare evidence before outreach.
Early interest can stall when basic questions take weeks to answer. Organize the material a serious buyer will need, then resolve the gaps you can control.
| Area | What to prepare |
|---|---|
| Revenue quality | Reconciled recurring revenue, customer cohorts, retention, concentration, costs, and the assumptions behind reported metrics. |
| Ownership | Company ownership records, founder and contractor IP assignments, material licenses, and relevant agreements for counsel to review. |
| Product proof | A working demonstration, documented capabilities, usage evidence, technical dependencies, and known limitations. |
| Operations | Hosting access, deployment instructions, support responsibilities, security practices, and a realistic transition plan. |
For AI products, make model-provider dependencies, data provenance, evaluation methods, and operating costs clear. Separate proprietary work from the services it uses.
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Make each approach relevant.
The first message should give the recipient a credible reason to look. Explain the capability, its connection to their business, and the evidence supporting that connection. Keep confidential information controlled.
A concise acquisition brief, short product walkthrough, or buyer-specific concept can make the opportunity easier to assess. Each artifact should clarify a real product or commercial question.
Share information in stages.
Begin with enough detail to establish relevance. Progress to fuller materials through an agreed confidential review process. Coordinate technical access, customer information, and other sensitive material with the appropriate professionals.
Keep a record of the contacts, materials shared, feedback, timing, and next steps. Bring that history into any advisory discussion so the process stays coordinated.
Evaluate the whole offer.
Price is one part of a transaction. Compare what is paid at closing, what depends on future events, the obligations that remain, and the work required to complete the transfer.
Revenue quality, growth, margins, concentration, product depth, strategic relevance, and integration risk can all influence a buyer’s view. Earlier-stage technology can require a particularly specific acquisition case. A universal revenue multiple gives an incomplete picture.
| Question | Why it matters |
|---|---|
| What is paid when? | Cash at closing, deferred payments, and contingent consideration have different conditions and risk. |
| What must the founder do? | Employment, transition support, milestones, and continuing obligations affect the practical outcome. |
| What remains to be resolved? | Diligence findings, approvals, financing conditions, and documentation can affect completion. |
Use qualified legal, tax, and accounting advisers to assess the documents and your individual position. Keep an agreed record of the commercial terms as the transaction develops.
From initial assessment to closing.
A strategic software sale is a sequence of decisions. Each stage should establish whether the opportunity deserves the next commitment of time and information.
- Assess fit and readiness.
Clarify ownership, commercial proof, founder objectives, and the strength of a potential buyer case.
- Prepare the acquisition case.
Define what transfers, build the materials, organize diligence, and prioritize a named buyer universe.
- Qualify strategic buyer interest.
Lead private outreach, establish the right internal contacts, and coordinate initial conversations.
- Develop and compare proposals.
Assess strategic intent, transaction structure, conditions, founder involvement, and credible next steps.
- Manage diligence and closing.
Coordinate information requests, technical review, commercial negotiation, professional advisers, and handover preparation.
I lead selective, exclusive founder-side sale processes. Research, buyer preparation, outreach, and founder communication stay with me throughout the engagement.
Before you start a sale process.
Can I sell a software company with modest revenue?
Revenue is one part of the acquisition case. Buyers may also value a differentiated capability, customer access, a specialist team, or development time saved. For my practice, the preferred range is approximately $1M–$5M ARR, alongside select earlier-stage software and IP opportunities with compelling strategic fit.
What about a pre-revenue AI or software product?
A working product can merit review when ownership is clear, the technology has meaningful depth, and specific buyers have a reason to acquire it. The assessment should establish product proof, transferability, and a credible acquire-versus-build case.
Should I speak to an advisor before approaching buyers?
An early discussion can help establish readiness, buyer priorities, and a coordinated approach. If outreach is already underway, bring the contact history, material shared, buyer feedback, and any agreed terms into the discussion.
How long will a strategic acquisition take?
Timing depends on preparation, buyer interest, internal approvals, technical review, and negotiation. Set expectations around milestones and decision points. A timetable should leave room for the work required by the particular transaction.
What should I include in an initial inquiry?
Share a product or website link, current revenue and customer traction, ownership status, your reason for considering a sale, and your preferred timing. Keep privileged and highly sensitive information for an agreed confidential review process.