In the fast-paced world of private equity and venture-backed growth, value creation takes many forms. In VC-backed companies, product-market fit and traction matter most, while in PE-backed firms, secure and scalable systems are key to sustaining growth and reducing risk. In both cases, technology underpins investor confidence and plays a vital role in shaping a successful exit.
At a recent breakfast briefing hosted by Codurance in partnership with pro-manchester, business, investment and technology leaders explored how investment-backed organisations can prepare their technology, and teams for a future transaction.
Here are the six key takeaways that emerged from the discussion.
Building Technology That Attracts Investors
To attract successful investment, software products need to do more than just look impressive, they must be built to scale, drive revenue growth, and create long-term commercial value. Buyers today are investing not only in what exists now, but in the future potential your technology can unlock.
A scalable and sustainable technology platform enhances buyer confidence, supports integration post-acquisition, and signals operational maturity. Investors want to see how the technology strategy aligns with business outcomes, not just product features for the sake of it. A cohesive roadmap, clear metrics, and an emphasis on time to value all help prove that technology is a genuine value enhancer, not just a cost centre.
One effective way to evaluate your current technology landscape is through Codurance’s Software Quality Assessment (SQA), a valuable approach used by companies such as Artlogic to measure, benchmark, and improve technical excellence.
Exit readiness starts long before technical due diligence. Maintaining accurate documentation that describes the forward view should be a top priority. This goes way beyond what has been built, it is about how you explain, justify, and plan the future trajectory.
From product roadmaps and architecture diagrams to decisions, actions, and minutes, your documentation must tell the story of why choices were made, not just what was delivered. This depth of clarity builds trust and demonstrates maturity during due diligence.
Operational discipline matters as much as the technical. Clean data, modular systems, and governance that can scale, reduce friction during buyer review. Organisations that can present well-structured documentation, verified IP records, compliance audits, and performance metrics not only streamline the exit process but also inspire greater buyer confidence, often translating into stronger valuations and smoother negotiations.
Artificial Intelligence is reshaping every stage of the investment lifecycle, from deal sourcing to portfolio management and value creation. For sellers, AI represents both an opportunity and a threat. It can help teams build and deliver products faster, automate documentation, and strengthen decision-making. But investors are increasingly wary of ungoverned AI adoption, data risks, and intellectual property uncertainty.
Many PE-backed businesses, especially those around 8 to 10 years old, are burdened with significant technical debt. Their systems weren’t designed with AI in mind, and their data is often fragmented, incomplete, or hard to access.
This poses a major risk. Data is the lifeblood of any AI strategy, and without structure, governance, and trust, organisations will struggle to realise AI’s full potential. Codurance’s Data and AI Readiness Assessment helps businesses identify where value is locked within their data and build the foundations needed for effective AI adoption.
A thoughtful and pragmatic AI strategy, one that acknowledges both the potential and the risk, is now a necessity. For many businesses, this begins with strong data foundations and governance before scaling AI adoption. When aligned to the organisation's wider business goals, companies that can demonstrate both strategic intent and control in this space will inspire greater confidence from buyers.
Whilst AI may be the hot topic of the moment, cybersecurity and compliance are certainly rivalling it in importance, especially amid the rise in major cyber attacks across the globe. The recent cybersecurity incidents affecting UK retailers such as M&S and Co-op are a stark reminder that even the most established and well-resourced organisations are not immune without modern systems and the right cybersecurity measures in place .
Cybersecurity and compliance have become central to investment readiness. Beyond protecting systems, businesses must prove they are operationally secure, well governed, and prepared for scrutiny. Regular risk assessments, robust documentation, and clear communication practices (including the use of AI notetakers to capture decisions and actions) all signal operational maturity.
Ultimately, a strong cybersecurity and compliance backbone not only safeguards day-to-day operations but also strengthens investor confidence during due diligence. For investment-backed businesses preparing for an exit, it can be the difference between achieving a premium valuation or facing difficult questions that delay, or even derail the deal.
Intellectual Property (IP) is often one of the most valuable assets a business possesses, yet it is also one of the easiest areas to overlook during preparation for investment or exit. Ensuring that your organisation fully owns its technology, data, and creative assets is essential to protecting valuation.
This means reviewing all contracts and documentation, from developer agreements and third-party licences to supplier and customer terms, to confirm that ownership of code, data, and innovations rests with the business, not individuals or vendors. Even a single missing clause or poorly worded contract can create uncertainty around who controls what, which can significantly impact buyer confidence and deal progression.
Establishing clear IP ownership early, supported by thorough documentation and legal review, safeguards the very assets that make your company valuable during exit. It also demonstrates to investors that governance and risk management are taken seriously, which are key indicators of a mature and well-prepared organisation that investors are looking for.
Successful exits depend on leadership, not just technology. For many organisations, the exit process places immense pressure on the CTO, who is often pulled into commercial discussions, due diligence reviews, and investor presentations. During this time, maintaining business-as-usual operations can become a major challenge.
That is why building a strong, empowered engineering team is critical. The ability of the wider technology organisation to continue delivering, maintaining systems, and driving improvements independently ensures continuity and confidence throughout the process.
A well-prepared leadership team sets this foundation early, with clear ownership structures, documentation, and communication that allow the business to run smoothly even as the executive team focuses on the transaction itself.
For PE-backed and investment-driven businesses, preparing for exit starts on day one, especially in today’s fast moving technology environment. A strong technology narrative, backed by clear documentation, robust governance, and visionary leadership, will not only withstand scrutiny but enhance valuation.
Codurance work with PE firms and portfolio companies to design and implement technology strategies that drive long-term value. Whether you're at the start of your investment cycle or preparing for exit, our expert teams can help you build the technical foundations for a successful transaction.