Preparing your tech business for a big sale

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Preparing your tech business for a big sale
14 MAY 2025   |    OBSIDIAN INFORMATION TECHNOLOGIES

Selling your tech company is a big deal. Buyers will dig into your systems, code, and data to make sure they’re getting a solid, future-proof business. Doing your own tech check-up before the sale helps you spot and fix problems, boost your company’s value, and avoid surprises. This guide walks you through 12 easy steps to get your business ready for a smooth, high-value sale.

Why this matters

Put yourself in a buyer’s shoes. Can your systems grow fast? Is your code clean? Do you own all your tech? Issues like outdated software or data risks can lower your sale price or kill the deal. A thorough self-check lets you fix these problems and show buyers a polished business. McKinsey studies say 30–50% of M&A deals flop because of tech issues, so getting ahead is key.

Steps to Check Your Tech Before the Sale

1. Create a Secure Document Hub
   Set up a safe place to store all your due diligence files, like system maps, data audits, or vendor contracts. A well-organized hub makes it easy to keep records and share proof of your tech’s strength with buyers later. Pick a secure tool (like encrypted cloud storage), set who can access it, and sort files by category (like data or systems). VDR (or Virtual Data Room) platforms (like VaultVDR) are often best suited for multi-party due diligence engagements, but is probably not a good fit internal due diligence exercises.
   
   
2. Track Risks and Decisions
   Keep a risk register to note tech problems, like data compliance issues or old code, and plan how to fix them (including an action log with the names and due dates for remediation). Also, jot down big decisions, like choosing to update software or switch vendors. Save these in your document hub to show buyers you’re on top of things. Make simple templates for risks and decisions, update them as you go, and store them in your hub.
   
   
3. Map Your Tech Setup and Create Architecture Landscapes
   Draw a clear picture of how your apps, data, connections, and systems work together. Look at how data moves and how systems link up (like through APIs). Also, spot any issues that could make merging with a buyer’s tech tricky. This map helps you find weak spots buyers might notice, allowing you time to fix before the real negotiations begin. Draw out your tech setup, list key connections, note merge risks, and fix big gaps. Good tools to use for this include Visio or Draw.IO. For advanced users (such as architects and engineers, Archimate could be a good option.
   
   
4. Check Your Data Practices
   Make sure you’re handling data correctly and securely, following laws like GDPR (Europe), POPIA (South Africa), HIPAA (US), and CCPA (California). Review how you store, process, and share data, and check who owns customer data. Look for risks like leaks, especially in fields like healthcare or finance. Review data flows, confirm customer data rights, update privacy rules, and prove you follow GDPR, POPIA, HIPAA, and CCPA.
   
   
5. Test Your Systems
   Check if your tech systems (cloud or on-site) can handle scale, up to 10 times more users than normal. Look at uptime, backup plans, and reliance on outside vendors. For example, a SaaS business with frequent crashes looks risky to buyers. Map your systems, test their limits, and fix weak spots.
   
   
6. Review Your Code
   Buyers will check your software’s quality. Look for messy code, outdated tools, or unsupported systems that could slow things down. Make sure your coding habits (like version control or automated updates) are up to industry standards. Clean code makes buyers trust your tech. Audit your code, measure any issues, and fix the worst ones first.
   
   
7. Lock Down Cybersecurity
   A security breach can scare buyers off. Check your protections, like encryption and access limits, and test for weak spots. For example, a fintech company needs rock-solid security to prove its worth. Update security measures, test for vulnerabilities, and document your protections.
   
   
8. Prove You Own Your Tech
   Buyers want to know you fully own your intellectual property, like patents or code. Check that all IP is registered to your company, not employees or outsiders. Look for issues with open-source software that could cause trouble. Gather IP records, check licenses, and clear up any confusion.
   
   
9. Assess Your Team and Docs
   Your tech team and documents matter to buyers. Make sure your team can keep the business growing and that key people will stay after the sale. Check that your guides, like system diagrams or API docs, are clear and current. Messy docs can make you look disorganized. Update guides, review team skills, and plan for knowledge sharing.
   
   
10. Check Vendor Contracts
    Look at deals with outside providers for apps, data, connections, or systems. Check costs, terms, and how easy it is to end contracts for things like cloud storage or analytics tools. Bad deals or heavy reliance on one vendor can worry buyers. Collect vendor contracts, spot risks like being locked in, and try to negotiate better terms.
    
    
11. Review Your Product Plan and Costs
    (this applies to custom-built and proprietary technology)
    Check that your product plan is realistic, fits the market, and can be done after the sale. Also, look at tech costs, like running systems or fixing code, to show you’re efficient. This proves your business can grow and saves money for buyers. Confirm product plan goals, calculate tech costs and returns, and save findings in your hub.
    
    
12. Write a Summary Report
    Pull together your findings into a short report, showing what’s strong (like solid systems), what’s risky (like old code), and how you’ll fix things. Save this in your document hub to guide your team and give buyers a clear picture of your tech’s readiness. Write a report with key points, list next steps, and store it in your hub for you and buyers.

Why It Pays Off

Doing this check-up helps you fix problems before buyers find them, potentially boosting your sale price by 10–20%, based on industry data. It also lowers the chance of deal delays or failures, as buyers love a transparent, ready business. For example, an e-commerce company that fixed system issues before the sale got a 15% higher offer than expected.

What to Do Next

Grab your CTO and a few key team members to start this process. Use your findings to make a plan, tackling big issues like security or IP first. If things get tricky, a consultancy like Obsidian Information Technologies can help. With a solid check-up, you’ll make your business a no-brainer for buyers.

Need help getting ready? Contact us for more information

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