Can I sell the software my business built without selling the whole business?

Many operating businesses end up with a software product by accident. A firm builds a tool for itself, a few outside customers start using it, and it becomes a side line. Selling just that product can make sense if the buyer wants the tool and you want to keep your main work. It also leaves loose ends that a full sale would not.

Can the product stand on its own?

Start by listing what the software depends on. Does it use your staff, your servers, your accounts or data from your other work? If the product shares any of these, the buyer needs a plan for each. Check also who wrote the code, including contractors, and whether you can show clear ownership of it. Your lawyer can confirm that point.

What moves with it

• The code, documentation and any third-party components
• Customer agreements, which may need each customer’s consent
• Hosting and the accounts it runs in
• Customer data and the privacy promises made about it
• Support duties and any service commitments

What you keep, and the changeover

If you still use the software yourself, you may need a licence back from the buyer. Agree how long you will help with support, and what happens to staff who maintain it. Ask your accountant how a sale of part of a business is treated, because it can differ from selling the whole. Plan the customer message together with the buyer.

For the customer-data side, read privacy and customer data when a tech company is sold.