Many founders dream of being acquired—but building a business to sell is very different from building a lifestyle business. If you want to maximize your valuation, you need to plan years in advance.
Here are the insider tips every founder should know:
1. Start With the Exit in Mind
Successful acquisitions rarely happen by accident. Begin with the end goal—being acquired—and reverse engineer your business strategy around it.
2. Eliminate Deal-Breaker Risks
Institutional investors are extremely risk-averse. One of the most common deal killers? Poor intellectual property agreements. If engineers or contractors ever contributed code without proper IP assignments, buyers may walk away entirely.
3. Understand Your Valuation Gap
Know where your business stands today and what valuation you’re aiming for. The difference is your valuation gap—and your roadmap to fix over the coming years.
4. Focus on Margins and Growth
Healthy SaaS companies have:
- Gross margins: mid-to-high 80%
- Rule of 40 compliance: growth % + profitability % ≥ 40
Anything below those benchmarks reduces your attractiveness to acquirers.
5. Prepare Early, Win Later
Closing valuation gaps, fixing margin issues, and eliminating risks take time. Start years before you expect to sell if you want to maximize your outcome.
Final Thoughts
If acquisition is your goal, design for it from day one. Clear IP ownership, strong margins, and the Rule of 40 aren’t optional—they’re required.
Additional Resources
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