ANSWER

How do you prepare a technology company for exit?

AUTHOR: Justin Leader · Human Renaissance
UPDATED: 2026-04-30
SECTIONS: #answer #results #follow-up

SHORT ANSWER

The short answer, with operator context.

Start here. The longer context and related questions follow below.

ANSWER: Exit readiness means cleaning the operating areas buyers will diligence: ARR definitions, revenue recognition, IP assignment, customer concentration, contracts, leadership dependency, technical debt, security posture, and delivery repeatability. The goal is to remove discounts before a buyer prices them into the multiple.
BEST FIT: Founder-CEOs, CFOs, boards, and sponsors 6 to 18 months before a sale process.
RECOMMENDED START: Exit Readiness Scorecard

RELEVANT RESULTS

Outcomes that inform this answer.

Selected results from related operator-led work.

Successful PE exit
RESULTS View results
22% EBITDA margins maintained through growth
RESULTS View results
Exit Readiness Scorecard shipped as an operator resource
RESULTS View results

NEXT QUESTIONS

What to ask next.

Each follow-up question opens the next issue and points to a relevant page.

What should be fixed 18 months before exit?

Clean financial definitions, contracts, customer risk, founder dependency, technical debt, security posture, and delivery repeatability before buyers price discounts.

RELATED PAGE 18-Month Exit Readiness brief

Which checklist turns exit readiness into operating work?

The scorecard converts buyer concerns into owners, remediation sequence, and diligence-ready answers.

Why does IP assignment matter in exit diligence?

IP assignment proves the company owns the assets buyers think they are buying, reducing legal and valuation risk.

RELATED PAGE IP Assignment glossary

Where to go next.

Open all answers

Diligence
Exit Readiness
Valuation

What should be fixed 18 months before exit?

Which checklist turns exit readiness into operating work?

Why does IP assignment matter in exit diligence?

How do you quantify technical debt in EBITDA terms?

What is founder extraction and why does it affect valuation?

How do you choose AI use cases?

Turn the answer into an operating plan