Buyers Are Looking For Clarity, Confidence, and a Story They Can Trust

Welcome back to the Mid Market Insider!

Today, we’re discussing why buyers are looking for a story they can trust, and why financial fluency goes a long way in deal negotiations.

Before we dive in…

It’s common for business owners to think buyers are simply evaluating revenue, EBITDA, and a few add-backs.

But that’s only the surface.

What buyers are really looking for is clarity, confidence, and a story they can trust.

And the fastest way to lose that trust is not being able to explain your own numbers.

I don’t mean reciting accounting terms or relying on your controller to answer everything.

I mean being able to walk someone through your financials in plain language, explain what’s driving results, and show that you have a firm grasp of how the business actually operates.

That’s financial fluency, and it matters more than most people think.

Why Buyers Care So Much About This

When we’re evaluating a business at Four Pillars, we want to know:

• Do you understand your P&L beyond the top- and bottom-line numbers?

• Can you tell me why your margins moved last quarter?

• Do you know what caused a spike or dip in working capital?

• Can you explain how your budget was built… and why actuals differ?

If the answers are vague, inconsistent, or overly dependent on “I’ll have my accountant send the details,” buyers assume risk.

What Financial Fluency Actually Looks Like

This isn’t about becoming a CPA.

It’s about being able to describe your business in a way that gives buyers confidence:

• Explain your results in clear language.

  “Margins tightened because freight costs spiked and two big jobs ran over labor estimates.”

• Show that your forecasts are grounded in reality.

  “We’re projecting 8% growth because our largest customer is adding two new projects already under contract.”

• Discuss variances with context.

  “We missed budget in Q2, but the issue was identified quickly, and here’s what we changed going forward.”

Even if your numbers aren’t perfect, and they rarely are, your ability to explain gives potential buyers confidence in you.

Why This Makes You More Attractive to Buyers

When a business owner can clearly articulate their financial picture, buyers see:

• A predictable operation

• A leader who understands the drivers of performance

• A business that isn’t running on instinct alone

• Fewer surprises post-close

• Lower perceived risk

And lower risk typically leads to better offers.

If You Want to Sell One Day, Start Here

Financial fluency is one of the few skills that pays off immediately… even if you’re years away from selling.

It helps you:

• Make better decisions today

• Identify problems faster

• Communicate more effectively with lenders, investors, and your team

• Strengthen your valuation long before you ever meet a buyer

Think about it this way:

A business that can explain its numbers will usually outperform a business that can only display them.

Learn to tell a story buyers can understand, and you make your business far more sellable.

That’s all for today’s newsletter! Thanks for reading!

📅 Next Week:

Next week, I’ll be getting into the importance of diversifying revenue streams in any business, why it matters to buyers, and how to do it practically.

Keep building,
Nick