Common questions business owners have when considering selling: 
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The biggest factors that impact valuation are EBITDA margin, growth potential, and defensibility of the business. A strong EBITDA margin signals healthy, efficient operations, while consistent growth shows scalability.

 

Buyers also look for defensible market positions—such as recurring revenue, niche dominance, proprietary IP, or strong customer relationships—that reduce risk.

 

Other key drivers include how reliant the business is on the owner, customer concentration, and the quality of financial reporting. The more stable, transferable, and scalable the business appears, the higher the valuation multiple it can command.

To find qualified buyers, many business owners partner with a buy-side investment bank that specializes in sourcing acquisitions for serious, pre-vetted buyers—such as private equity firms, strategic acquirers, and high-net-worth individuals.

 

These banks already have deep relationships and direct access to active acquirers, allowing them to introduce you to trusted, qualified buyers who align with your business type and deal size.

 

Rather than going broad or public, a buy-side bank can discreetly and efficiently match you with the right buyer, saving time and increasing the likelihood of a smooth, high-value exit.

To increase your valuation before selling, focus on improving EBITDA margins, creating recurring or repeatable revenue streams, and reducing the business’s dependence on you as the owner.

 

Clean up financials, trim unnecessary expenses, and document key processes to show operational efficiency. Strengthen your customer base by increasing retention and diversifying revenue sources—buyers pay more for businesses with stable, predictable cash flow.

 

Lastly, having a clear growth plan and a strong, defensible market position (e.g. brand strength, proprietary tech, or niche dominance) can boost your multiple and attract premium buyers.

To prepare for a sale, business owners should focus on making the company more attractive, transferable, and low-risk to a buyer.

 

This starts with clean, accurate financials—ideally reviewed or audited—and detailed documentation of key processes, contracts, and systems. Reducing the company’s dependence on the owner is critical; a strong management team and clear SOPs increase buyer confidence. You should also address any legal, tax, or operational red flags in advance.

 

Finally, highlight your business’s growth opportunities—buyers pay more when they see a clear path to future upside. Proper preparation can significantly boost your valuation and speed up the deal process.