Frequently Asked Questions

How does Foundy work? 

Foundy is the UK’s leading platform to buy or sell a business. Our digital marketplace connects buyers and sellers to streamline your acquisition experience, acting as a modern alternative to a traditional M&A advisory firm. 

Sellers can create an anonymous listing for free in minutes and sell their business with our end-to-end M&A support, including expert advisory services and bespoke buyer outreach. Our fees are only payable upon success, so we keep our seller’s best interests in mind to successfully complete an acquisition. 

Buyers can browse through Foundy’s marketplace of businesses for sale for free to find and connect with approved sellers - it only takes 2 minutes to create a free account and start discovering a wide variety of high-potential businesses. View key performance metrics and compare screened opportunities in one place to find the business that aligns with your acquisition interests.

When a buyer and seller connects and wants to proceed with an acquisition, our expert team is here to help navigate through the complex process to streamline the experience and help both parties reach a deal that they are happy with.

How do I sell my business on Foundy?

It takes around 10 minutes to create an anonymous seller profile on Foundy via this page. With your free seller account, you can present your business in front of thousands of potential buyers and start receiving messages within hours of listing. 

Inside ‘Your Acquisition’ hub you can access resources and expert support to help you navigate through the due diligence and documentation processes when you have found the right buyer. Alongside, our team and technology can offer further support to facilitate your acquisition payout via our trusted escrow facility. 

If you have any questions about the process once you have created your account, please feel free to contact us. 

How do I buy a business on Foundy?

You only need a few minutes to create a free buyer account on Foundy to start browsing our varied marketplace of approved seller listings. 

Once you have found a business that suits your acquisition criteria, you can contact the seller directly to express your interest and find out further details by upgrading to a Pro Buyer account. With this ability to connect with the seller to share confidential information, you can then conduct due diligence to assess the business and decide whether you would like to make an offer. 

Payment will be handled via Escrow.com to ensure that both parties can transfer money securely, and your acquisition will be complete!

What size of businesses can be listed on Foundy?

The minimum requirement to list on our marketplace is at least £10k in trailing twelve month (TTM) revenue. 

We do not currently list pre-revenue businesses - we recommend signing up for Foundy’s monthly Rocket Fuel newsletter to stay updated as we may open a category for this at a later date. This can be done by filling out the form at the bottom of Foundy's home page.

We are best positioned to support companies generating between £30k and upwards of £30m in TTM revenue, though we welcome businesses generating even higher revenues. 

Most of the listings on Foundy are profitable, though, we also list non-profitable businesses that present an exciting growth opportunity.

What types of businesses can be listed on Foundy? 

We welcome businesses from any industry to apply to be listed on Foundy. 

Foundy is particularly known for its focus on supporting online and tech-enabled businesses i.e. businesses using digital platforms to sell their products or services. 

For example, businesses in categories such as SaaS, eCommerce, marketplace, Amazon FBA, fintech, digital agency, Web3, AI, insurtech, recruit tech, health/med tech, edtech etc. 

Each seller listing is subject to approval by the Foundy team to go live in the marketplace.

Is my personal information stored by Foundy and what are the terms and conditions for users?

At Foundy, we take data protection very seriously.  

Please find our privacy policy here.

We encourage users to also read through the terms and conditions for users here (this includes any buyer, seller or 3rd party advisor who has created an account on Foundy).

Please contact [email protected] if you have any questions about the security and processing of your personal and company information, or our terms and conditions. 

Are seller and buyer profiles anonymous on Foundy’s marketplace?

We recognise that business sellers and buyers often wish to remain anonymous to avoid unnecessary competition or impacting company reputation.

Therefore, sellers and buyers are asked to complete their public profile without revealing personal identifying information and maintain their anonymity on the public marketplace until they find particular buyers or sellers that they are interested in moving forward with. They can then choose to reveal their personal or organisation’s name and any documents they have uploaded, such as pitch decks, financial summaries and LinkedIn details, directly to the other party confidentially.

Sellers can review each interested buyer’s profile when the buyer has sent a message request to connect to determine which ones they wish to reveal their identity to and share further information with. 

How do conversations between buyers and sellers take place on Foundy?

Our instant chat tool streamlines communication between buyers and sellers to save both parties significant time and hassle conducting due diligence. You can view your messages inside the ‘Messages’ page inside the Foundy app. 

In order to use Foundy’s chat tool, buyers need to have upgraded from a free ‘Basic’ account to an approved Pro buyer. Sellers will need to have completed their profile and been approved to go live on our marketplace, at which point they have the ability to receive or send buyer messages. 

Foundy’s approval process allows our members to feel secure in the knowledge that they have a good idea who they are conversing with, while also preventing user accounts with false details from being used and minimising bad faith negotiations. 

Why should I sign up for a Foundy Pro Buyer account? 

It is free to view anonymous listings on Foundy. However, in order to contact a seller to request to view their business information, you will need to upgrade your account and be approved to become a Pro Buyer. This lets you communicate directly with sellers, and your Pro Buyer status shows that you are a trusted user. 

The process of upgrading only takes a few minutes and our fee is significantly lower than other M&A platforms. Click here to find out more.

How much does it cost to be a Foundy Pro Buyer?

We offer our Foundy Pro Buyer membership for serious buyers who are looking to engage with sellers directly. We have 3 account options available for different types of buyers:

  • Basic Buyer
  • Starter Pro Buyer
  • Advanced Pro Buyer

Please visit our pricing page for full details on our buyer memberships.

How should a buyer undertake due diligence?

Before going through with an acquisition, it is important that a buyer does their due diligence on the seller’s listing. It is recommended that you complete a comprehensive analysis on the company and its respective assets and possible liabilities that you intend on buying. We encourage you to be efficient, communicative and transparent with your questions to the startup seller to ensure neither party wastes time or resources, whilst also being thorough with your analysis to prevent you from taking on any liabilities that you did not intend to.

All Buyers are responsible for completing their own due diligence, investigative research,

financial analysis and suitability assessment of any business listed on our Site with respect to their own needs and goals. Foundy is not liable for conducting due diligence on listings.

Will Foundy broker my deal?

No, Foundy’s role is to be a platform for both buyer and seller parties to find each other and discuss potential deals with the security of anonymity and confidentiality, as well as providing the necessary tools to successfully complete an acquisition. 

Our team of in-house expert M&A advisors and tools are ready to help you look after matters regarding your sale, including legal documentation, data room preparation and escrow, to assist you through a streamlined acquisition process as much as we can.

Foundy also provides all users free access to our Resources section with insight on how to secure a mutually rewarding deal.

How much does Foundy cost for sellers?

It is free to create an account and list as either a seller or a buyer on Foundy’s marketplace. 

Seller Fees

There is only a small percentage fee payable upon a successful acquisition or securing investment. We are considerably more affordable than most traditional M&A advisory firms. 

Our expert team will be available to provide dedicated support via Instant chat, email and video call to help you along the process towards your acquisition or securing your investment. We also offer an advisory service for further support in the acquisition process, including a data room build, communicating with potential buyers and expert M&A advice. Click here to find out more. 

Alternatively, our resources section is free to access and provides support across key areas of the M&A process. 

Acquisition success fees (charged on the total valuation following a completed deal):

  • 3% success fee for acquisitions at a valuation of £1,000,000 or less 
  • 2% success fee for acquisitions at a valuation of £2,000,001 to £3,000,000
  • 1.5% success fee for acquisitions at a valuation of £3,000,001 to £5,000,000
  • 1% success fee for acquisitions at a valuation higher than £5,000,001

Currently, we do not offer users the ability to fundraise or complete a secondary share sale. We hope to offer access to secondaries in the future - please sign up to our monthly Rocket Fuel newsletter by filling out the form at the bottom of Foundy's home page to stay up to date.

What is the process once I have decided to accept an offer? 

Buyers will typically want to conduct due diligence to assess your business, which can take some time depending on the business size and type. Make sure that you are ready to present key documents to prepare for this process - for example, through a data room build. Foundy’s resources, including blogs and podcasts, can inform you about what documents to prepare and how to present them. 

We have also created an advisory package for founders who would like some additional support and guidance through the process, either because they are new to M&A or simply don’t have the time. Through this package, our expert in-house M&A advisors can help you build your data room and essential documents to present to potential buyers, conduct a highly tailored buyer outreach search and more to reach an acquisition you are happy with. For full information, please visit our Sell-side Advisory page.

Foundy’s team will work with you and guide you to take as much stress out of the sale process as possible. You will always be strongly recommended to seek your own independent legal, tax and financial advice prior to concluding a sale.

What can I do to increase the number of views on my listing? 

Typically, buyers will search for businesses using filters to find the listings most relevant to their criteria. This can include valuation, industry, location, number of employees, average annual revenue, etc. So, make sure that your listing is as detailed and accurate as possible so that you can be connected to the right buyers and investors for your business. 

For example, in your description, you can answer additional questions such as:

  • The average cost per unit
  • Current customer acquisition cost versus life time value of customer (growth efficiency ratio)
  • The characteristics and buying habits of your customer base
  • The location where the products are made
  • Your current feedback rating on review platforms

A visually compelling listing is also likely to attract more buyers - include an engaging pitch deck in your private information section to share with selected buyers you are interested in working with.

Remember, that whilst a listing with higher buyer activity is likely to have high buyer interest, this does not mean that listings with lower activity go unseen - all you need is the right buyer!

For more insight and resources, please go to our Foundy ‘Resources’ page.

I am not interested in selling my company now but I will at a later date. In the meantime, how can I increase my startup’s Valuation?

Tips to increasing your startup’s valuation: 

  • Reduce your burn rate so investors see that the business has a clearer and faster path to profitability, and that their investment will last longer.
  • Strengthen your brand presence by producing unique, relevant and well managed marketing campaigns both on the Founder’s personal Linkedin profile and company social media pages.
  • Show a graph of traction, hopefully showing growth in turnover and customers year-on-year. If you have neither, show growth in retention / partnership deals / partner interest / user testimonials.
  • Accelerate customer growth through conversion rate optimisation and affiliate partnerships
  • Raise revenue by strengthening the UX of the funnel that shift customers from free to paid
  • Lower customer acquisition costs by improving SEO
  • Gain SEIS/ EIS compliance to provide tax savings to investors
  • Stimulate a culture of continuous innovation and seek to minimise the cost through R&D tax credits
  • Lower costs by automating workflows such as integrating AI chat bots
  • Acquire suppliers or companies in parallel markets in order to reduce CAC and cross sell to increase LTV.

In the meantime, feel free to stay in touch via Foundy’s monthly Rocket Fuel Newsletter (by filling out the form at the bottom of Foundy's home page and follow us on LinkedIn.

Are the details of my business visible to other members once I register? 

Approved sellers have a public profile which includes headline descriptions, key metrics and basic descriptions about their business. This will help to attract initial buyer interest. This profile is publicly available to view by other sellers as well as both “Basic” (Free) and “Pro” (Upgraded) Buyer Accounts.

Only sellers and buyers who have created a profile and been approved by Foundy’s team can access the marketplace to see the public profiles of buyers and sellers. Once an account is verified, you can also contact other users regarding an acquisition.

If startup sellers wish to share further information with selected potential buyers, more “private information”, such as a pitch deck and financial summary, can be shared. To take extra measures to ensure that your details remain private between you and prospective buyers that you choose to engage with, you can also request the buyer to sign a Non-Disclosure Agreement before sharing your information - the choice is yours.

Why should I use Foundy to list my business to secure an acquisition or investment rather than another marketplace or traditional broker?

We welcome startups of all sizes and accommodate an extensive range of business models, from side hustles to SMEs with 100+ employees, to use our platform for free. Maintain anonymity when you list and full control on which of our many approved high-quality buyers you allow to see your company’s identity through our instant communication message function to maximise efficiency. 

You can receive multiple bids to acquire your company with no upfront costs, and a very low commission rate that is only payable upon success, meaning that your best interests are always kept in mind.

Our extensive buyer network includes acquirers across a range of specialisms. Have security in payment through our partnership with Escrow.com and the exclusive opportunity to join one of the fastest growing startup buyer, investor and seller networks of any platform, globally.

Can I receive expert sell side advice on getting ready for an exit, including finding suitable buyers and building my data room?

Yes, absolutely. Foundy is your modern alternative to a traditional M&A advisory firm. Our expert team is highly experienced in delivering sell-side and buy-side advisory services. You can either use our platform on a self-serve basis to complete a deal, with the help of our resources if needed, or request our expert advisory support. Given the complexity of M&A and the amount of value at stake, we have developed an advisory service that is both affordable and accessible to businesses of varying sizes to achieve the best deal possible for you. 

For sellers, we can:

  • Provide templates on what to include in your data room
  • Build a Valuation report
  • Build an Information Memorandum (this similar to a pitch deck but for acquisitions)
  • Build and contact a highly tailored list of relevant buyers on your behalf using Foundy’s existing buyer user base and wider network
  • Support you through the due diligence process

Please find full details on our Sell-side Advisory page.

Are there any free resources available? 

Our Resources page is dedicated to providing knowledge - via blogs, tutorials and videos - to help sellers and buyers learn in areas of setting valuations, legals and due diligence. We refer to the latest information and tools to provide you with support in these key areas.

If you are interested in receiving additional advisory services from expert advisors, please let us know. You can visit our Sell-side Advisory page for more information.