Lessons from a Seller: How to Run a Smoother M&A Process
A practical guide to knowing whether your business is ready for a sale, with reflections from someone who has lived both sides of the deal.
Adam Zimmer founded Arius Software in 1999, ran it for more than a decade, and sold it to Perseus Group in 2012. Today, he is a Portfolio Manager where he is responsible for acquiring and overseeing a group of businesses like Arius.
We recently sat down with Adam to discuss what he learned from his own sale process, and what he sees now from the other side of the table. In this interview, Adam shares what he wishes he had known before selling Arius and offers practical insight for founders thinking about their own exit.
Preparation Matters More Than Perfection
Many founders assume exit preparation begins once they’ve decided they’re ready to sell. In reality, the groundwork that makes a process feel smooth starts years earlier. A successful process comes down to understanding how a buyer will evaluate your business and ensuring the operational reality of the company supports the story your numbers are telling.
One of the most common misconceptions Adam encounters is the idea that a business needs to be “perfect” before engaging a buyer. In practice, experienced acquirers understand that every company has operational quirks, historical decisions, and areas still evolving. Buyers are not expecting flawless systems or perfectly polished reporting packages. What we are looking for is clarity, consistency, and confidence in how the business is run.
That said, there is a difference between having a perfect business and being prepared for a process.
“What I didn’t fully appreciate before going through a sale was how much easier everything becomes when information is already organized before diligence starts,” Adam explains. “Once you’re in a live process, even simple requests can become disruptive if you’re pulling everything together in real time. The early stages of a process are usually centered around a relatively small set of foundational materials. If you have those organized, you’re already giving yourself a head start.”
The initial materials acquirers want to review are relatively straightforward:
- Historical financial statements
- A reasonable forecast or operating budget
- Visibility into revenue by customer
- A clear picture of organizational structure and key employees
Together, these items help a buyer assess the health, durability, and predictability of the business.
Running a Smooth Due Diligence Process
As diligence progresses, buyers naturally begin asking more detailed questions about customers, forecasting assumptions, operational processes, and organizational structure. One of the most common friction points Adam sees in founder-led businesses is operational dependency.
“A lot of businesses evolve in ways where critical knowledge sits with one or two people. Processes may exist, but they live in people’s heads, and day-to-day workflows, instead of documentation.”
Buyers are trying to understand whether the business can continue operating smoothly after your exit. We look for evidence that there are repeatable processes, operational visibility, and stability.
Even relatively simple documentation in these key areas can increase confidence:
- Clearly tracked KPIs
- Workflows
- Customer relationships
- Vendor and operational knowledge
The Best Processes Usually Start Earlier Than Expected
Another lesson Adam emphasizes is the value of engaging with buyers before launching a formal process. Many founders wait until they feel completely ready to sell before beginning any conversations. By that stage, timelines are often compressed, and diligence preparation becomes reactive rather than deliberate.
Starting earlier creates an opportunity to understand how buyers evaluate businesses, what information matters most, and where potential friction points may exist. “The founders who navigate the most successful processes are the ones who prepared gradually. Not necessarily because everything was perfectly in order, but because they weren’t trying to solve every issue under pressure” shares Adam.
Early preparation also gives founders the chance to build familiarity and trust with potential buyers over time, rather than meeting for the first time in the middle of a transaction. When diligence becomes reactive, management teams get pulled away from customers, employees, and day-to-day execution. Requests take longer to answer, confidence begins to erode, and unnecessary friction builds.
In Conclusion
At Perseus, we invest years into building relationships with prospective sellers. If you are preparing for an imminent sale, or simply want to start the conversation early, we are always happy to connect.
Read Adam’s full interview here: From Company Founder to Serial Software Acquirer
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