Welcome back to the Mid Market Insider!
Today, I’m breaking down the two factors that drive virtually every business valuation—and why most owners spend years focusing on things that have little impact on what buyers are actually willing to pay.
Thinking About Selling Your Business?
If you're considering a sale or simply exploring your options, feel free to learn more and start the conversation below:
If you’re planning to sell your business someday… There are only 2 things that can increase the value of your business before you exit.
No, it’s not your “brand story”...
It’s not your lack of debt.
It’s definitely not how hard you work.
Take it from someone who has 20 years of experience helping owners to exit their companies… and who bought 10 companies with his own PE firm…
The only 2 things that move the needle are:
Increasing your EBITDA.
Increasing the certainty that your EBITDA not only will be maintained, but will grow in the future.
That’s it.
Those are the two fundamental laws of business valuation.
Miss one, and your valuation collapses. Hit both, and you dictate the terms.
But here’s the twist…
Most owners think they’re doing these two things… When they’re really not. And that misunderstanding can end up costing them dearly
The eye-rollingly boring business improvement that’s like catnip for buyers.
A surprisingly simple way to attract a much higher multiple – by having a conversation with your direct competitors.
If I could wave a magic wand over most privately held businesses and make a single wish, here’s the one thing I’d install immediately to increase the value.
If you’re 1–5 years away from selling (or even just thinking about it), this could completely change how you prepare.
And if you’d like some personalized help increasing the value of your business before you go to market…
That’s all for today’s newsletter! Thanks for reading!
📅 Next Week:
In next week’s edition, I’ll break down why the diligence phase is where most deals are won or lost—and why seemingly small issues can completely change a buyer’s perception of your business.
And how being truly prepared for diligence can help you maintain leverage, build trust, and keep a deal moving toward a successful close.
Keep building,
Nick
In Case You Missed It: Must-Watch Video
5 Best Ways to Increase the Value of Your Business Before Selling
Click the link below and check it out:
