75% of founders regret their sale within a year. Tyler Handley sold Inkbox to BIC for $65M—the hardest part wasn't the negotiation, it was untethering his identity from seven years of building.
Most exit advice focuses on the deal. The best preparation focuses on what comes after.
In this issue:
🎯 Narbe Alexandrian on what buyers actually look for—and why trust beats spreadsheets
🚩 Three red flags that kill deals (and how to fix them before you sell)
📋 Practical moves for founders + one question for advisors to prompt preparation
🇨🇦 ICYMI: M&A intelligence from the Canadian ecosystem
— Krystyn Harrison, Co-founder & CEO, Exit Horizon
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This Week: What Buyers Actually Look For
Narbe Alexandrian (Define Capital) spent years in traditional PE and VC before starting a permanent capital firm that buys vertical SaaS to hold forever.
His thesis: "Most people think private equity means slash and flip. For us, it's the complete opposite. We're buying to build."
The moment that changed how he evaluates deals:
He met a founder at a conference, ready to discuss valuation. The founder stopped him: "I don't want to talk about price. I want to know what you'll do with my employees."
Narbe learned: founders who've been cutting dividends for 20 years are financially secure. The sale isn't about money—it's about legacy.
His framework (for SaaS founders):
Retention: ≥90% gross, >100% net (customers stick and expand)
Low concentration: top 5 clients can't dominate revenue
Founder independence: business runs without daily decisions
What kills deals every time:
Founder can't step back for 90 days
Toxic culture (unhappy employees = unhappy customers)
Personal goodwill that won't transfer
His advice: "If the business can't run without the founder, it's not ready. We want to buy a company, not a job."
Listen to Narbe's full episode:
ICYMI - Past Episodes - The Full Lineup
Marcus Mitchell (Shire Capital, $1B+ farmland bought) How strategic buyers evaluate differently than VCs. Why evidence beats promises. His three-pillar acquisition framework.
Tyler Handley (Inkbox → BIC, $65M) The repositioning pivot that unlocked value. Unconventional negotiation tactics. The mental prep most founders skip.
Jacqueline Dinsmore (three exits) Why your business should always be due diligence ready—even when you're not selling.
Andrea Matheson (3 exits >$1B, buy-side of $850M in acquisitions) The biggest shift: stop thinking like an owner, start thinking like a buyer. That lens changes everything.
Watch the trailer
This is for Canadian founders building to sell. Who want to turn their business into an asset, not a job.
Three Moves for Founders
Start with three actions this quarter:
1. Take buyer calls - Those inbound inquiries you ignore? They're free consulting, but remember you don’t have to share anything you don’t want to. Instead, flip the script and ask them questions - start with: “What do you know about my company?” And, "what do you look for? What makes a business unattractive in my space?" This will help you see your business the way a buyer might. If they know nothing about your business - it’s noise, don’t waste your valuable time.
2. Run the 90-day test - Can your business operate for 90 days without your daily decisions? Take note of where the risks are and work with your leadership team to identify ways to reduce dependency on you. Hire operations depth now.
3. Track buyer metrics
Gross retention (≥90%) and Net retention (>100%) - - more relevant for recurring business models (e.g., SaaS)
Top 5 customer concentration (aim for <30%)
Your weekly hours in critical path decisions
These numbers reveal readiness faster than anything else.
One Question to Reflect On This Week
If you were to buy your own business, buyer walked through tomorrow, what would they see as your biggest risk?
ICYMI: M&A Intelligence for Canadian Founders
Shopify acquires Molly Studio - Design team bolstered despite market headwinds. Strategic talent acquisition continues. Read the story →
Tech Exit Toronto 2025 — the Exit Horizon team is going next week. Join the conversation on Canadian exits, valuations, and what's next. Event info →
1Password: $100M secondary + strategic AI dealThe playbook: offer disciplined employee liquidity, pursue strategic partnerships, boost trust and retention—no IPO required. Full details →
Clio's acquisition-driven enterprise launch - bundle capabilities (Operate + Docket + Vincent), deepen data moats, expand into higher-value customers. Result: compounding durable revenue. The lesson for bootstrapped founders: unify your offerings into outcome-focused bundles, capture operational data that improves with scale, target one upmarket segment where you drive measurable results. How they did it →
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Here's to the Deals Worth Making 💚
Krystyn Harrison
P.S. - Exit planned for the next 1–5 years? Book a Value Audit Call. We'll show you where you stand and what needs to happen before you sell.
P.P.S. - We don’t sell businesses, we prepare them and their owners to maximize the value of their business and exit with no regrets.