Built to Thrive (and Sell): Part 4 - Understand What Buyers Want

“Think Like a Buyer: Unlock Hidden Value in Your Business”

By now, you’ve clarified your goals, started assembling your exit team, and considered the long game when it comes to taxes and estate planning. Now it’s time to shift your perspective and step into the shoes of your future buyer.

• What are they really looking for?

• What excites them—and what scares them away?

The truth is, your business is only worth what someone is willing to pay for it. And what they’re willing to pay is directly tied to how your company looks from their point of view.

In this step, you’ll learn to think like a buyer, identify hidden value, and uncover risks that could shrink your purchase price—or stop a deal altogether.

What Buyers Are Looking For

Different buyers (private equity, strategic, ESOP trustees, individuals) evaluate businesses differently, but most are hunting for one thing - a durable, growing, and transferable stream of cash flow.

Here’s what tends to excite buyers—and increase multiples:

✅ Predictable Revenue

• Recurring contracts, long-term customers, or subscription models

• Diversified customer base

✅ Growth Potential

• Untapped markets, scalable operations, and proven product-market fit

• Clear strategic levers for expansion

✅ Strong Team and Systems

• Management that can run the company without the owner

• Documented processes and clean delegation of responsibilities

✅ Clean Financials

• Accurate, GAAP-based financial reporting

• Well-documented adjustments and minimal owner add-backs

✅ Defensible Moat

• Competitive advantages, brand equity, IP, customer stickiness, or vendor exclusivity

What Spooks Buyers

These red flags create risk and reduce valuation:

• Heavy owner dependence for sales, operations, or decision-making

• Customer concentration (e.g., one customer is 25%+ of revenue)

• Poor or delayed financial reporting

• Outdated systems or lack of internal controls

• Pending lawsuits, compliance issues, or key employee turnover risk

A Buyer’s Mental Model: Risk and Return

Buyers evaluate your business like any investment:

• How risky is the cash flow?

• How likely is it to grow?

• How easy will it be to take over and improve?

The less risk and more opportunity they see, the higher the price they’ll pay.

Your job now is to eliminate barriers and spotlight value—two things we’ll keep working on throughout this series.

Hidden Value: Where Most Owners Miss the Mark

Most owners focus on topline revenue and profit—but savvy buyers pay for systems, people, and process.

You might be sitting on hidden value if:

• You’ve built a brand with loyal customers, but haven’t formalized a marketing system

• Your top salesperson drives revenue, but you have no documented sales process

• You deliver amazing service, but have no recurring revenue model

Fixing these areas before going to market can significantly boost your valuation—and give buyers confidence that your business will thrive after you’re gone.

✅ Your Takeaway

To increase value, stop thinking like an owner—and start thinking like a buyer.

What would you want to see if you were writing a multi-million dollar check?

Start now by asking:

• What would make someone excited to own my business?

• What would make them hesitate?

Your answers will reveal the roadmap for maximizing value.

📘 Next in the Series:

In Step 5, we’ll tackle one of the most foundational (and frequently overlooked) drivers of business value: your financials.

Buyers don’t just want a great story—they want numbers they can trust. Clean, accurate, and transparent financials are what turn interest into offers. You’ll learn how to present your business with clarity and confidence—and avoid the messy surprises that can derail a deal.

Until next time,
Will Petter