Seller's Preparation Checklist

Compile complete financial records including:

• Monthly revenue statements from App Store Connect and Google Play Console
• Payment processor statements (Stripe, RevenueCat, Adapty, PayPal)
• Bank statements showing deposits
• Expense receipts and invoices
• Tax returns (if applicable)

Use our valuation guide to calculate SDE properly. Document all add-backs (owner salary, one-time expenses, etc.) with receipts and explanations.

Create a detailed P&L statement showing: Revenue → Operating Expenses → Net Profit → Add-backs → SDE

Document All Operating Expenses

Create a comprehensive list of all monthly/annual costs:

• Server/hosting costs (AWS, Firebase, Supabase, Heroku, etc.)
• Third-party APIs and services (analytics, push notifications, email, etc.)
• Marketing and advertising spend (broken down by channel)
• Developer tools and subscriptions
• Customer support tools (Zendesk, Intercom, etc.)
• Contractor/freelancer payments
• Legal and accounting fees

Stabilize Revenue Trends

If revenue has been volatile, work to stabilize it for at least 3-6 months before listing. Buyers prefer consistent, predictable revenue over spikes. Avoid one-time promotional campaigns that create artificial spikes right before sale.

Be ready to explain: Any revenue spikes, anomalies, or drop-offs. Buyers need to understand the story behind the numbers. Clean, consistent financials speed up deals significantly.

Review and Cut Non-Essential Costs

Before talking to buyers, review and cut non-essential costs. This will improve EBITDA and optics. Clean and reconcile your profit and loss statement. Clearly document add-backs and one-off expenses. Prepare MRR breakdowns by country, store, plan, and platform.

Reduce Owner Dependencies

If you handle critical functions personally, document processes and consider:

• Automating routine tasks (customer support, content updates)
• Creating standard operating procedures (SOPs) for key processes
• Training a contractor or employee to handle your responsibilities
• Setting up systems that don't require daily intervention

Apps that run without the owner are worth significantly more.

Improve Key Metrics

Focus on metrics that increase valuation:

• Reduce churn: Improve onboarding, add value, fix pain points
• Increase retention: Implement engagement features, improve UX. Aim for retention that matches or exceeds category benchmarks
• Grow organically: SEO, content marketing, word-of-mouth. Many buyers prefer a 50/50 organic/paid split or higher organic percentage
• Diversify revenue: Add new revenue streams (subscriptions, ads, IAP)
• Improve LTV: Increase average customer lifetime value. Document LTV by cohort and LTV/CAC ratios
• Balance traffic sources: Show both organic growth (defensibility) and paid UA (scalability). Document what channels work and why

Buyers need clear, consistent metrics. Prepare these data points:

• LTV by cohort and LTV/CAC ratio
• Retention curves (D7, D30, D90+ where possible)
• Churn reasons (voluntary vs. involuntary) with explanations
• Organic vs. paid traffic split with channel breakdown
• UA profitability by channel + key experiments and learnings
• Revenue breakdown (subscription vs. IAP vs. ads)
• % of users on annual plans (if applicable)
• Category benchmarks comparison (how you compare to peers)

Key insight: Confusing or contradictory metrics slow deals more than 'bad' metrics. Prioritize clarity and consistency.

Before buyers review your code:

• Remove commented-out code, debug statements, and test files
• Fix obvious bugs and technical debt
• Update dependencies to latest stable versions
• Remove hardcoded credentials and API keys (use environment variables)
• Ensure code follows consistent style and conventions
• Fix security vulnerabilities (run security audits)

Create comprehensive documentation:

• README.md: Setup instructions, dependencies, build process
• Architecture documentation: System design, data flow, key components
• API documentation: Endpoints, authentication, request/response formats
• Code comments: Explain complex logic and business rules
• Deployment guide: How to deploy to production
• Environment variables: Document all required config

Organize Repository Structure

Ensure your code repository is well-organized:

• Clear folder structure and naming conventions
• Separate frontend, backend, and infrastructure code
• Include .gitignore to exclude sensitive files
• Clean commit history (consider squashing messy commits)
• Tag releases and versions
• Include tests (unit tests, integration tests)

Create Development Environment Setup

Make it easy for buyers to set up and run the app locally. Include Docker files, setup scripts, or detailed step-by-step instructions. Test that a fresh developer can get the app running in under 30 minutes.

Document Third-Party Dependencies

Create a comprehensive list of all third-party services and their purposes:

• APIs and SDKs used (with versions)
• Third-party services (Firebase, AWS, Stripe, etc.)
• Open-source libraries and licenses
• Costs associated with each service
• Whether each service can be transferred or needs new account

Reduce Reliance on Fragile Dependencies

Buyers want apps that are easy to maintain. Clean up messy code paths, remove one-off hacks, and reduce reliance on fragile third-party dependencies. Stable, scalable infrastructure increases valuation.

Optimize Paywalls and Pricing

Tighten paywall logic and pricing structure. Document your paywall logic and pricing history. Buyers see under-monetization as a plus, indicating room for improvement. Ensure your pricing aligns with competitors and category norms.

Ensure Code is Transferable

Verify that code can be easily transferred:

• No hardcoded personal credentials or API keys
• All dependencies are publicly available or included
• No proprietary code that can't be transferred
• All licenses allow transfer (check open-source licenses)
• No dependencies on seller's personal accounts

Check that all third-party accounts can be transferred:

• App Store Connect and Google Play Console (verify transfer eligibility)
• Payment processors (Stripe, RevenueCat, Adapty)
• Analytics platforms (Firebase, Mixpanel, Amplitude)
• Hosting/infrastructure (AWS, Firebase, Heroku)
• Domain registrars
• Email services
• Social media accounts

Some services require account transfers, others need new accounts. Document the process for each.

Document Standard Operating Procedures

Create SOPs for key business processes:

• Customer support procedures and common responses
• Content update processes
• Marketing and growth strategies
• Bug reporting and resolution workflow
• Feature release process
• Backup and disaster recovery procedures

Document Experiments and Learnings

Create a master document of experiments, distribution tests, and product learnings:

• UA experiments (what worked, what didn't, why)
• Product feature tests and results
• Pricing experiments and conversion impacts
• Channel performance and learnings
• Failed experiments and lessons learned

This shows buyers there's documented knowledge they can benefit from, not just the product itself.

Improve App Store Presence

Optimize your app store listings:

• Respond to all reviews (especially negative ones)
• Update screenshots and app preview videos
• Optimize keywords and descriptions (ASO)
• Fix any App Store policy violations
• Ensure ratings are 4.0+ stars
• Get featured if possible (Apple/Google editorial features)
• Grow organic traffic through ASO, reviews, and SEO
• Document keyword rankings for core terms

Buyer preference: Many buyers value organic growth as it indicates defensibility and compounding growth potential. Show your organic install percentage and keyword rankings.

Gather Marketing Assets

Compile all marketing materials:

• App icons (all sizes)
• Screenshots and promotional images
• App preview videos
• Marketing copy and taglines
• Brand guidelines and logos
• Social media graphics
• Email templates

Document Customer Base

Provide insights about your users:

• User demographics and segments
• Geographic distribution
• Retention cohorts (show cohorts that stabilize over time)
• Customer acquisition channels (organic vs. paid breakdown)
• LTV by segment
• Churn analysis with clear stories behind early churn
• Category benchmarks comparison (how your retention compares to peers)

Retention signals buyers look for: Retention matching category benchmarks, clear explanations for churn, and cohorts that stabilize over time. Even if churn is high, showing you understand why and have course-corrected is valuable.

Resolve Any Legal Issues

Address legal concerns before listing:

• Ensure privacy policy and terms of service are up to date
• Resolve any trademark or copyright disputes
• Fix GDPR/privacy compliance issues
• Resolve any App Store policy violations
• Document all contractor agreements and IP assignments
• Ensure all licenses are transferable

Create a compelling but accurate listing:

• Accurate revenue numbers (verified through whatsthe.app)
• Clear description of what's included in the sale
• Honest assessment of growth trends
• Transparent about challenges and opportunities
• Professional screenshots and app preview
• Clear asking price based on valuation methodology

Have ready for serious buyers. Deals move fastest when handover docs are ready:

• Financial statements (12-24 months) - clean and reconciled
• App Store Connect/Play Console access (read-only initially)
• Code repository access (private repo)
• List of all assets included in sale
• Third-party service inventory
• Legal documents (privacy policy, terms, IP assignments)
• Current and historic product roadmaps
• Feature gating logic and paywall logic documentation
• Onboarding flows and funnels
• Architecture overview (simple is fine)
• Master doc of tools, SDKs, dashboards, logins
• Analytics events and data taxonomies
• Growth playbooks and experiment logs

Set Realistic Timeline

Be prepared for the sale process to take 1-3 months from listing to close. App transfers can take 1-4 weeks after agreement. Set buyer expectations appropriately.

Consider Post-Sale Support

Many buyers prefer founders to stay post-acquisition for product knowledge and continuity. Decide if you're willing to provide transition support (and for how long). This can increase sale price and valuation. Common options: 30 days, 60 days, or 90 days of support.

Key insight: Founder involvement signals belief in the product and can influence higher valuation. Have conversations with your team before speaking to buyers about who's staying and knowledge transfer needs.

Don't wait until an offer appears. Prepare your approach:

• Decide your minimum accepted offer and structure (cash vs. earnout vs. equity)
• Identify your ideal buyer type (studio, roll-up, strategic buyer)
• Build a target buyer list with typical deal sizes and recent acquisitions
• Talk with at least five potential buyers before choosing
• Prep your first message and practice your pitch
• Be honest about timing, motivation, and trade-offs

Remember: Most buyers offer 100% upfront cash as standard, but some offer earnouts or equity. Consider these options carefully as they can increase/decrease your overall valuation.

Clean, Consistent Financials

Speed requires all numbers to be in order. No messy revenue classifications, unexplained cliffs, or 'miscellaneous' line items. Anything but clear numbers will add a red flag and significantly slow down the process.

Clear Handover Documentation

Buyers moving quickly need to know they can pick up the app and keep it running without trouble. This means access to architecture overviews, data taxonomies, analytics events, roadmap history, experiment logs, growth playbooks, and all relevant documentation.

A Transparent Founder

Fast-closing deals rely on trust. Buyers who click with a founder and feel they've made a trusted connection will overlook imperfections and move faster. Be honest about challenges and opportunities.

A Believable Growth Story

Buyers want to clearly understand what happens after they buy the app. Help plot their success with a clear narrative about growth potential, untapped markets, and opportunities to expand. Show them how they can make it work much better.