tyler-smith.com · Questions & Answers

We have spent years building a custom internal software platform to manage our project delivery, but it requires constant developer maintenance. Do buyers actually pay a premium for custom proprietary tools, or should we migrate to off-the-shelf software before a sale?

Buyers pay for predictability and scalability, not for your pride in custom code. If your proprietary tool requires a dedicated developer team just to keep it from breaking, buyers will view it as a high-risk technical liability rather than intellectual property. They will discount your business for the high cost of maintaining custom software.

Take a hard look at your technology stack. If your custom system does not provide a true competitive advantage that drives higher margins, you should migrate to a stable, off-the-shelf platform before you go to market. This simplifies your operations and removes key-person dependency on your developers.

If the software truly is your secret weapon, you must document its architecture, code bases, and user workflows. Use your EOS processes to show how the system is managed, and prove that any competent developer can step in and run it. Do not let your custom technology become a bottleneck that scares away institutional buyers during technical due diligence.

Category: Exit Planning

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