How Tailored Software Helped Me Sell My Business for a 7x Multiple

If you’re a business owner, your company represents years of hard work, sacrifice and dedication. When it’s time to sell, you want to be fairly compensated for everything you’ve built. But many business owners overlook the critical role systems and software play in making their business attractive to potential buyers. They can make the difference between receiving top-dollar offers and struggling to sell at all.

What I Learned After Buying a Business With Hidden Risks

When I bought my first business, a Telstra Partner of 20 years, I wasn’t just inheriting clients and contracts from the previous owner. I was also inheriting their inefficiencies and any headaches that came with them.

Shortly after buying the business, Megan (my wife and business partner) and I uncovered a $2 million fraud scheme that had been running undetected for years. You can read the full story here. The short version is that sales contractors were inflating prices, pocketing the difference and using insider connections at Telstra to erase the charges from customer accounts.

Turning things around wasn’t easy, but with a complete overhaul and tailored software from NEXUSsoft, we built a business that ran smoothly, scaled efficiently and was ready to sell – for a 7x multiple.

Years later, I became NEXUSsoft's CEO. But back then I was just a happy client!

The Problem with Off-the-Shelf Solutions

Many business owners rely on off-the-shelf software to manage their operations. It’s affordable, it’s quick to set up and it works – at least, until it doesn’t.

The problem with generic systems is that they force you to bend your processes to fit their limitations. For example, in the business I bought, the software lacked flexibility and created bottlenecks. Every sale relied on manual input, every report depended on one or two key people and critical details were constantly slipping through the cracks.

From a buyer’s perspective, these issues are deal breakers. During due diligence, buyers aren’t just looking at your revenue. They’re asking, “How hard will this business be to run without the current owner?” If your business relies heavily on specific individuals to keep things running, it’s going to scare buyers away – or lead to a much lower offer.

How Tailored Software Transformed Our Operations

When we realised the limitations of the existing setup, Megan and I knew we needed a better solution. That’s when we turned to NEXUSsoft. Their tailored ERP adapted seamlessly to the way we worked, automating repetitive tasks and centralising operations. Tasks that once took hours – like reconciling sales or tracking inventory – were now done in minutes, with far fewer errors.

However, the biggest game changer was reducing our reliance on any one person. Whether I was in the office or halfway around the world, I could trust that the business was running smoothly. The software handled what no human could consistently: tracking every transaction, ensuring accountability and giving us a clear picture of our operations at any moment.

The built-in controls also helped us eliminate fraud entirely. With every transaction logged and no room for ambiguity, the system gave us confidence that nothing like the $2 million fraud we had uncovered could ever happen again.

Tailored Software Helped Take Our Business Valuation From a 2x to 7x Multiple

One of the most important lessons I learned during the sale process is that buyers pay a premium for businesses that run smoothly without the owner. Tailored software plays a huge role in that.

With NEXUSsoft’s ERP, we moved from a reactive approach to a proactive one. Key processes were baked into the software, not stuck in someone’s head. If someone left, the system still worked. This didn’t just make life easier – it made the business far more attractive to potential buyers.

When I bought the business, it was valued at a 2x multiple. When we sold it eight years later, we achieved a 7x multiple. I can confidently say that tailored software was a driving factor in that valuation. Buyers could see that the business wasn’t just profitable – it was also scalable, transparent and easy to transition.

Why Buyers Love Businesses with Tailored Systems

I knew that buyers placed importance on structure and scalability – but before running my own business, I didn’t realise just how critical software was in achieving this.

Here’s why tailored software was so important:

• Transparency: With everything logged and tracked in the software, there was no ambiguity. Buyers could easily see how the business operated, which gave them confidence.
• Reduced Key Person Risk: By putting processes into NEXUSsoft, we eliminated the dependency on a few individuals. Buyers didn’t need to worry about replacing key staff to keep the business running.
• Scalability: The software allowed us to grow without adding unnecessary overhead, proving that the business could handle expansion without significant investment.
• Security: NEXUSsoft’s tailored ERP not only streamlined operations but also made fraud nearly impossible. Every transaction was logged and the built-in controls meant buyers could trust the business's integrity and security.

Ultimately, buyers want businesses they can step into without a steep learning curve, so they want to hit the ground running from day one. Tailored software can help make that possible.

Final Thoughts: Investing in the Future Value of Your Business

Software isn’t just an operational tool – it’s an investment in your business’s future. Whether you’re looking to sell, scale or simply reduce the day-to-day chaos, having the right systems in place is game-changing.

For me, NEXUSsoft didn’t just help us clean up a messy operation. It gave us the foundation to build something truly exit-ready. And while I eventually became their CEO, I’ll always remember how they helped me as a client first.