Legal Readiness Can Make or Break Your SaaS Exit

Thinking about raising capital or selling your SaaS company? Your legal readiness can make or break the deal.

In episode #326, Ben Murray breaks down what investors and acquirers look for during due diligence — and why preparing your cap table, contracts, IP, and financial systems at least six months in advance is essential to protect your company's valuation and ensure a smooth process.

What You’ll Learn

Cap Table Management: Why tracking every issued share, option, and agreement matters — and how to avoid “email equity surprises.”

IP Protection: The critical role of signed IP assignment agreements for employees, contractors, and vendors.

Customer & Vendor Contracts: Why detailed MSAs, renewal clauses, and change-of-control provisions are required for investor confidence.

Accounting Readiness: How clean, timely accounting — especially a complete MRR schedule (revenue by customer by month) — helps prove the health of your recurring revenue and ARR growth.

Sales Tax Compliance: Why sales tax exposure can derail your exit process.

Due Diligence Prep: How to build your data room, organize key documents, and present your SaaS business model with clarity.

Why It Matters

For Founders: Legal gaps can reduce your valuation multiple and slow down the exit timeline.

For CFOs: Solid financial systems and clean documentation protect your cash flow and reputation with investors.

For Investors: A well-prepared company signals operational maturity and reduces transaction risk.

For Operators: Legal readiness supports strategic growth and prevents “deal fatigue” during M&A or fundraising.

Resources Mentioned

Ben’s Blog Post: “SaaS Legal Readiness Checklist” : https://www.thesaascfo.com/why-legal-readiness-can-make-or-break-your-saas-exit/

SaaS Metrics Foundation Course – Learn how to align your financial reporting and recurring revenue metrics for due diligence success.

Upcoming Webinar: “Legal Readiness for SaaS Founders — How to Prepare for an Exit or Raise” (details via newsletter)

💬 Quote from Ben

“You can’t fix legal readiness in a week. Start six months early, or you’ll be scrambling during due diligence when investors start asking for data you don’t have.”