How to prepare your operations for exit readiness: scale without friction, integrate without rework

When an investor evaluates a technology company, they don't just look at financial metrics or technology; they analyse how daily operations work because they know that's where the real capacity to scale and generate sustainable returns lies. An efficient, well-documented operation can significantly increase a company's valuation , while processes that depend on key individuals can quickly destroy value.

At Baker Tilly's Tech M&A department, we can confirm that well-structured operations make the difference between a successful transaction and one that falls through during due diligence. A buyer wants to see that the machinery works with little operational risk and without dependence on key individuals. In other words, they want to be able to take over the operation without having to redo it.

This article will guide you step by step to transform your operations into an asset that accelerates your sale and protects your valuation. Here are some questions we typically ask business owners to assess their level of readiness for sale:           

Question 1: Key processes and documentation

Buyers need certainty that your company can function without you. If your processes exist only in the minds of your key employees, you are selling risk, not value. Professional documentation demonstrates operational maturity and facilitates post-acquisition integration.

• Are there documented and standardised processes for the main operations that drive the business (software deployment, customer onboarding, incident resolution, procurement)?
• Are all these processes formally documented in written operating procedures (SOPs) and not just informal knowledge?
• Are IT systems (CRM, knowledge base, ERP) fully integrated, avoiding reliance on manual processes?

Start by mapping the processes that directly impact your revenue and customer experience. Develop operating procedures that your team will actually use and update. Connect your CRM to your billing system, automate the order-to-cash flow, and ensure that all critical information is centralised and traceable.

Question 2: Performance and service levels

Investors pay premiums for predictability. You need to demonstrate with data that your operations perform consistently, month after month, quarter after quarter.

• Do you regularly measure operational performance with indicators such as support response times, delivery times, and quality metrics?
• Do you consistently meet service level commitments to customers?
• Are there any operational bottlenecks or single points of failure, such as only one person being able to run the billing system?

Implement operational metrics that demonstrate service consistency and responsiveness. Indicators should be updated regularly and included in management reports. An operation that ‘always works the same way’ inspires confidence and shortens due diligence.

Question 3: Scalability and efficiency

The buyer will want to know if your company could handle twice the activity without collapsing. Assess whether your processes, systems, and people can scale.

• Could the current support, infrastructure, and processes handle a 100% increase in sales?
• Have opportunities for cost savings or efficiency improvements been identified and implemented ('quick wins')?
• Are the physical operations, if any, well maintained and have sufficient capacity for growth?

Review your technology infrastructure and ensure it can scale. A scalable operation demonstrates that your business can grow without disproportionate investment or disruption.

Question 4: Stability of suppliers and supply chain

Uncontrolled external dependencies are critical points in due diligence. Buyers will severely penalise any risk of business interruption.

• Are relationships with key suppliers and providers stable, contracted and diversified?
• Are there backup or contingency plans in place in the event of a critical supplier failure?
• Is inventory or the order book managed effectively, where applicable?

Ensure that all agreements with critical suppliers are in writing, with clear terms of service, penalties, and reasonable notice periods. Avoid contracts that can be terminated upon change of control, or negotiate their removal before going up for sale. Document what you would do if each critical component of your operation fails; plans do not have to be perfect, but they must exist and be credible.

Question 5: Demonstrate resilience and business continuity

Your ability to keep the business running in the face of disruptions is now a critical factor in valuation.

• Is there a business continuity plan covering critical systems and offices, including disaster recovery and backups?
• Would operations be resilient in the event of disruption, offering a stable system for a buyer's integration team?

You need a clear plan that covers critical system recovery, emergency remote working, crisis communication, and activation of backup suppliers. Your goal is for the operation to be perceived as robust and predictable, even in adverse scenarios.

The return on investment in operational readiness

Operational preparation for a successful sale is not a project; it is a transformation that also improves your business from day one. Every process you document, every metric you establish, every automation you implement not only prepares your exit but also makes your company more efficient and profitable today.

At Baker Tilly Tech M&A Advisors, we have developed a proven Exit Readiness methodology that has helped hundreds of technology companies maximise their sale value. If you are considering putting your company up for sale, an initial assessment of your operational readiness can make the difference between a good sale and an extraordinary sale. Contact our specialist advisors for a no-obligation consultation.