Why Founders Leave Millions on the Table When Selling Their Company

In this episode of SoCal Edge, we sit down with technology and business transformation leaders Elisa Henry and Allen Kim to explore what founders should really be doing 18–24 months before trying to sell their company.Drawing on decades of experience in technology, AI, product management, and operational scaling, Elisa and Allen explain why many founders leave millions on the table during an acquisition process — often because the business is too dependent on the founder, lacks scalable systems, or has hidden technical and operational debt.The conversation dives into what sophisticated buyers and private equity firms are actually looking for during due diligence, including:Why “service businesses disguised as product companies” often receive dramatically lower valuationsHow recurring revenue and customer stickiness can significantly increase multiplesThe role of technical debt, legacy systems, and AI in modern M&A preparationWhy documenting processes and building a strong data room early can make or break a dealHow founders can reduce dependency on themselves before an exitThe importance of leadership development and aligning employee incentives during a sale processHow AI tools are accelerating due diligence and exposing operational weaknesses faster than ever beforeCommon mistakes founders make when trying to prepare for an acquisition too lateElisa and Allen also share practical insights from working alongside founders through emotionally difficult transitions, helping companies move from founder-led organizations into scalable, acquisition-ready businesses.If you’re a founder, executive, investor, or advisor thinking about growth, scalability, or eventual exit planning, this episode offers a highly practical look inside the realities of preparing a company for sale.#podcast #business #startup #AI #MandA #founders #technology #privateequity #entrepreneurship #SoCalEdgeConnect with Elisa and Allen:https://www.linkedin.com/in/henryelisa/https://www.linkedin.com/in/allenwkim/