We are debating whether to build a custom AI middleware layer to connect our legacy systems or just buy several off-the-shelf SaaS integrations. From an exit readiness perspective, how do we decide which approach actually builds transferrable enterprise value on our V/TO®?

Question

Tyler Smith · Accepted Answer

To build real enterprise value for a future exit under the Step by Step Exit model, your systems must be easily transferable and free of key person dependencies. Building custom middleware might seem like a way to create proprietary IP, but it often creates massive technical debt. A strategic buyer will look closely at the cost to maintain that custom code. If your software requires a dedicated team of engineers to keep it running, it can actually decrease your valuation.

Your leadership team must use the V/TO to decide if custom software is part of your Core Focus. If you are not a software company, your goal should be operational efficiency, not software development. Prioritize using off the shelf AI tools that can be easily integrated using standard APIs. This keeps your technology stack clean, modular, and easy for an acquirer to inherit.

By choosing to buy rather than build, you can focus your resources on training your team to use these tools. This builds transferrable organizational capability rather than complex code. Your enterprise value lies in how efficiently your people use technology to deliver results, not in the software itself. Keep your business exit ready by keeping your technology subservient to your business model.