EXIT GUIDE
Every option available to you as a vertical software founder.
An honest breakdown — including the ones that have nothing to do with Pre. We built this because nobody else would.
Pre. has no financial relationship with any company linked in this guide. These links are provided as a resource only.
WHERE ARE YOU RIGHT NOW?
Keep Running It Alone
WHAT IT IS
You remain the operator. No outside capital, no partner, no transaction. You run the business.
BEST FOR
Founders with a healthy business, a team that doesn’t depend entirely on them, and no liquidity pressure. This is a legitimate choice.
THE HONEST TRADEOFF
Full control, full burden. No outside perspective, no capital injection, no exit path unless you build one yourself. Works until it doesn’t.
WHEN IT MAKES SENSE
When you genuinely love the work, the business is profitable, and you have a team that could run it without you in an emergency.
TIMELINE
Indefinite.
Bring In an Operator Partner
WHAT IT IS
A small pod of operators embeds inside your business for a defined engagement. We work across growth, margins, support, product execution, and KPI clarity. You keep full ownership and control. After the engagement, every option is still on the table.
BEST FOR
Founders where the business works — customers stay, revenue is stable — but growth has stalled and the founder is the bottleneck. You haven’t decided what comes next and you don’t want to be pressured into deciding before you’re ready.
THE HONEST TRADEOFF
Requires openness to change how the business runs. We’ll push on things. If you want someone to validate what you’re already doing, this isn’t the right fit.
WHEN IT MAKES SENSE
When you feel like the ceiling — and you’re not sure if the ceiling is the market or you.
TIMELINE
60–90 day scoped engagement. You keep everything we build.
Sell to a Permanent Capital Acquirer
WHAT IT IS
Companies that acquire vertical software businesses and hold them indefinitely. They don’t flip. They hire professional managers and keep the business running under new ownership.
BEST FOR
Founders who want a clean exit, know the business is ready, and care that it continues to serve its customers well after they leave.
THE HONEST TRADEOFF
You exit. The business continues under someone else’s direction. You may or may not stay on. Valuation multiples are typically lower than PE because the buyer is paying for permanence, not leverage.
WHEN IT MAKES SENSE
When margins are clean, churn is low, and you’re genuinely ready to step back.
TIMELINE
6–18 months from first conversation to close.
Sell to Private Equity
WHAT IT IS
A PE firm acquires a majority stake, typically at 3–7x revenue or EBITDA, with a planned resale in 3–7 years. You usually roll equity and stay involved through the hold period.
BEST FOR
Founders who want significant liquidity now, are open to staying involved, and have a business with strong EBITDA and a clear growth story.
THE HONEST TRADEOFF
You give up control. The business runs toward a defined exit, not long-term continuity. Management pressure increases. Works well if your incentives align with the fund’s timeline.
WHEN IT MAKES SENSE
When EBITDA margins are strong, growth is demonstrable, and you’re ready for the discipline and accountability that comes with institutional capital.
TIMELINE
3–9 months to close, 3–7 year hold.
Search Fund Acquisition
WHAT IT IS
An individual — the “searcher” — raises a small fund, acquires one business, and runs it as CEO. They’re often MBA graduates from top programs who want to be operators, not investors.
BEST FOR
Founders who want to step out of day-to-day operations but care that the business continues to grow with a motivated operator at the helm.
THE HONEST TRADEOFF
You’re betting on one person. Quality varies enormously. The best searchers are exceptional operators. The worst are first-time managers with no relevant experience. Diligence on the person matters more than the terms.
WHEN IT MAKES SENSE
When you want out of operations, the business is stable, and you’re willing to do the work of evaluating individual searcher quality.
TIMELINE
6–24 months. Search funds move slowly.
Raise Growth Capital
WHAT IT IS
Bring in a minority investor — typically a growth equity firm or strategic — to fund a specific expansion initiative without selling the business.
BEST FOR
Founders with a clear use of capital, a defined growth lever (new market, acquisition, infrastructure), and genuine appetite for outside accountability and board-level oversight.
THE HONEST TRADEOFF
Dilution, reporting requirements, and eventual exit expectations. Investors expect a return path. If you raise growth capital, you’re implicitly committing to a future liquidity event.
WHEN IT MAKES SENSE
When you can clearly articulate what the capital will do and what the return looks like — not as a way to buy time.
TIMELINE
3–9 months to close.
Wind Down
WHAT IT IS
Deliberately close or sunset the business over time. Serve existing customers through their contracts, wind down operations, and close cleanly.
BEST FOR
Founders where the honest assessment is that the business isn’t acquirable at a price worth waiting for, isn’t growing, and isn’t improving quality of life.
THE HONEST TRADEOFF
It ends. But done with intention, it can be clean, dignified, and fair to customers and employees. Better than the slow bleed of a business that’s running on fumes.
WHEN IT MAKES SENSE
When the honest answer is that the business isn’t acquirable and isn’t growing — and continuing has real personal costs.
TIMELINE
3–12 months depending on contracts and obligations.
Most founders we talk to aren't ready for options 3–7 yet.
They're in the gap — where the business works but doesn't run without them. That's exactly what Pre. was built for.
But if you're clearly ready for one of the other paths, we'd rather you know that now than discover it after a long process with someone who wasn't right for you.
If you're not sure where you are — talk to us. We'll tell you honestly.
No pitch deck. 20 minutes. We'll be straight with you.