In the fast-paced world of private equity (PE), value creation is everything. From operational improvements and strategic acquisitions to market expansion and leadership transformation, the ultimate goal remains the same: a successful, profitable exit. Increasingly, a combination of forward-thinking leadership and the smart use of technology is proving to be a powerful lever on that journey.
From enhancing operational efficiency to shaping investor perception, technology plays a transformative role in preparing a business for sale. At a recent panel hosted by Codurance at the Rainmakers Conference, industry leaders and technology experts came together to explore the intersection of tech and exit strategy.
Here are 5 key takeaways that emerged from the discussion:
Scalable, sustainable technology platforms are no longer just operational tools – they're strategic assets that drive up enterprise value.
Buyers today are looking for more than just profitability; they want businesses that are built to scale, but also get the basics right and look to minimise costs at every opportunity. A modern, well-architected software platform signals that a company is future-ready. It demonstrates agility, resilience, and an ability to integrate quickly post-acquisition. For PE-backed companies, this means investing early in platforms that can grow with the business.
That said, bad tech rarely kills a deal outright, most technical issues can be resolved. What’s more critical is whether the technology strategy is aligned with the business’s commercial direction and meets customer needs. A disjointed or reactive tech roadmap can create uncertainty, while a cohesive, intentional strategy reassures buyers that technology is being used to drive business outcomes, not just maintain the status quo.
It’s not about having perfect technology, but purposeful technology that drives growth, efficiency, and scale, and is ultimately seen as a true value enhancer.
One way to evaluate your current technology is by undergoing a Software Quality Assessment (SQA) – a valuable tool for companies such as Artlogic striving to measure and improve technical excellence. The SQA provides a holistic, unbiased, and data-driven analysis that covers not only the quality of the software itself, but also the development process, knowledge distribution, and key contributors. Crucially, it also helps build a clear business case for change by highlighting tangible risks, opportunities, and areas for investment.
Tech Due Diligence (TDD) is often seen as a challenging or high-risk stage of the exit process, but in reality, it’s simply about answering questions and handling objections.
When a company’s technology estate is well-documented, with clear architecture, processes, and responsibilities, the due diligence process becomes straightforward. The process only becomes adversarial when there are gaps such as unclear ownership, undocumented legacy systems, or missing compliance policies.
Buyers aren’t looking for perfection; they’re looking for clarity and confidence. TDD should validate that the technology is fit for purpose, scalable, secure, and aligned with the business model. If a business has invested in sound software engineering practices, governance, and strategic alignment, then this stage becomes more about confirmation than confrontation.
This is also the stage where businesses must identify technical “spikes” which are areas of complexity, risk, or uncertainty that could impact scalability or integration. Recognising these early allows for proactive mitigation and better positioning during the sale. It’s also the right time to evaluate what should be built in-house vs. what should be bought off the shelf. Buyers appreciate a thoughtful, pragmatic approach to this balance, one that focuses on time-to-value, maintainability, and long-term scalability.
Codurance’s Technical Due Diligence Assessment (TDDA) is a key tool that can be used to help organisations involved in the M&A process evaluate their software landscape through a clear, in-depth, and independent expert analysis of bespoke software products, people, and processes – providing valuable insights to inform investment decisions.
Overall, the key is to treat TDD not as a defensive process, but as an opportunity to showcase the quality and thoughtfulness behind your technology investments. Well-prepared businesses move through this phase faster, with fewer renegotiations and stronger leverage in final deal terms.
Exit readiness is about more than just revenue metrics, it’s also about how well a business can stand up to scrutiny during due diligence and getting the basics right to ensure alignment.
When a PE firm is preparing for an exit, time is of the essence. The ability to quickly and accurately provide financial data, customer metrics, technical documentation, and compliance reports can make or break a deal. Companies with well-organised digital systems and clean data pipelines can move faster, with fewer surprises along the way.
This readiness extends into post-sale integration, too. Businesses with quality systems and cloud-native architectures are easier to merge, scale, and grow under new ownership. Whether it’s ERP systems, customer data platforms, or DevOps pipelines, alignment and transparency in digital operations accelerate both exit timelines and post-deal value capture.
Discover where we are supporting investment-backed businesses to drive accelerated value through software improvements.
AI’s and Data’s Role in Value Creation
Artificial Intelligence is rapidly changing the rules of the game – not just in the companies being sold, but in how investors manage their portfolios.
For businesses preparing for exit, demonstrating a clear, forward-looking AI strategy, even without a fully deployed AI solution today, is becoming increasingly important. Buyers want to know not just what’s in place now, but how the company plans to innovate in the near future. A thoughtful AI roadmap shows you're actively evaluating how emerging tools can create value and sustain competitive advantage.
Private equity thinks 10 years ahead. While it may be hard to quantify the exact impact of AI right now, investors are looking for signs that a business is laying the groundwork to capitalise on future opportunities. And one of the biggest red flags? Poor data foundations.
Many PE-backed businesses – particularly those 8 to 10 years old – are carrying significant technical debt. Their systems weren’t built with AI in mind, and their data is often siloed, incomplete, or difficult to access. This is a major risk: data is the lifeblood of any AI strategy, and if it's not structured, governed, or trusted, companies won’t be able to fully benefit from AI’s potential.
Codurance’s Data & AI Readiness Assessment supports organisations in identifying opportunities to unlock value from their data and prepare for AI adoption. Through a structured and expert-led process, businesses can uncover gaps, align their technology and data strategies, and build a clear roadmap for AI integration – whether the goal is to improve internal operations or differentiate in the marketplace.
As AI takes over more routine processes, the value of people and data will rise. Human decision-making, creativity, and domain expertise, combined with high-quality, well-managed data, will be the differentiators in an AI-powered market. Companies that understand this shift and invest in both talent and data infrastructure will stand out in future M&A scenarios.
Leadership in Tech Transformation
Perhaps the most important factor in successful tech-enabled exits isn’t the technology itself – it’s the leadership behind it.
Digital transformation really does start at the top. CEOs, CTOs, and CIOs need to be more than just advocates for technology, they need to own how it ties into every part of value creation, from AI adoption and digital readiness to technical due diligence. Strong leadership is what turns a scalable tech platform into real business results. It’s what ensures technical debt gets tackled early, data governance doesn’t fall through the cracks, and emerging tools like AI are evaluated for real impact, not just the buzz. Without clear direction from the top, even the smartest tech investments risk drifting away from commercial goals.
Leadership must also take responsibility for ensuring digital readiness – investing in systems, services, data quality, and documentation that reduce friction during due diligence and post-sale integration. Similarly, the ability to communicate a clear, strategic AI roadmap, even in early stages, is now a key differentiator in exit conversations. And when it comes to technical due diligence, leadership sets the tone: have we prepared, or are we reactive?
A CIO or CTO who can clearly articulate how technology supports the business strategy – through scale, security, innovation, and efficiency – is a valuable asset at the negotiation table. Equally, a CEO who understands the strategic importance of technology and empowers their tech teams accordingly helps build a culture of accountability and long-term thinking.
Ultimately, leadership is what turns technology from a back-office function into a core enabler of business value. In the eyes of potential buyers, that alignment and the confidence it inspires is often what seals the deal. Read our guide for CTOs and Tech Leaders of Private Equity-backed businesses.
Closing Thoughts
For PE-backed businesses, the message is clear: preparing for a successful exit starts on day one. By embedding scalable technology, building digital readiness, shaping a forward-looking AI strategy, strengthening governance, getting ahead on tech due diligence, and investing in visionary leadership, companies can not only maximise their value but also stand out as truly exit-attractive.
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.
