Selling a software company is often seen as a numbers game—you think the most important thing is the price, but as the big day approaches, you realize there’s a lot more that matters. Before the transaction, price seems like the holy grail, but as the details unfold, other factors take center stage.
What Really Matters? The Data Tells a Different Story
We conducted an email survey asking sellers to rank their biggest concerns. The results were eye-opening:
3rd Place: Getting the highest price – While important, sellers ranked this below other considerations.
2nd Place: The buyer’s industry knowledge – A buyer who understands the business and market is seen as a better steward for the company’s future.
1st Place: Fair and simple legal terms – A straightforward, transparent deal structure ranked as the most critical factor.
The Post-Transaction Perspective Shift
Interestingly, the factor that ranked lowest before the sale—whether the business remains independent—often becomes the top concern afterward.
Once the sale is finalized, sellers find that having a few extra percentage points in the bank matters far less than maintaining a role in the business and ensuring its continued growth. What becomes far more important is whether the day-to-day operational environment allows the founders enough freedom to define and pursue the company’s long-term vision and immerse themselves into the pursuit of those goals. For those who choose to stay engaged, operating the business with a renewed sense of purpose quickly becomes their top priority.
As sellers navigate this transition, it becomes evident that the essence of a successful sale lies in balancing financial rewards with the preservation of the core values and passions that initially fueled the business and enriched the lives of all those involved.